Public ID: PID-G3N7NG
Tax advantage for domestic businesses over foreign-based exporters and investors in Canada
Trade barrier summary
This affects UK businesses with operations in Canada. A private corporation which is controlled by Canadian residents may be designated a Canadian Controlled Private Corporation (CCPC). These are eligible for various tax advantages such as small business deductions on income tax, enhanced investment tax credits and shareholder entitlement to capital gains exemption.
This means that CCPC net tax rate is 9% compared to 15% for other corporations. As a result, UK companies with operations in Canada face added costs.
17 July 2019
18 December 2020