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Taxation in Canada


Taxation in Canada

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Taxation in Canada

Income Tax

The Fiscal year is 31 March to 1 April. The personal income tax % is lower than the UK.

Newfoundland and Labrador

7.7% up to $31,278
12.65% on $31,278 or over
14.40% on over $62,556

Prince Edward Island

9.8% on the first $31,984

13.8% on $31,985 and over

16.7% on over $63,969

Nova Scotia

8.79% on the first $29,590

14.95% on $29,590 and over
16.67% on $33,820 and over

17.5% on $93,000 and over

21% over $150,000

New Brunswick

9.3% on $36,421 and over

12.5% on $36,422 and over

13.3% on $45,584 and over
14.3% over $118,427


first $38,570 16%
over $38,570 20%
over $77,140 24%


5.05% on the first $37,106
9.15% on $37,108 and over
11.16% on over $74,214


10.8% on $31,000 and over
12.75% on over $36,000, +
17.4% on $67,000 and over


11% on the first $40,354
13% on $74,943 and over
15% on anything over $115,297


10% flatrate

British Columbia

5.06% up to $35,859 and over
7.7% on $35,860 and over

10.5% on the next $10,623
12.29% on $17,645 and over

14.7% on $99,987 and over


7.04% on the first $40,970

9.68% on the next $40,971
11.44% on $45,080 and over
12.76% on $127,021 and over

Northwest Territories

5.9% on $37,106 and over

8.6% on $37,108 and over
12.2% on $46,442 and over

14.05% on $120,656 and over


4% on $39,065 and over

7% on $39,065 and over
9% on $48,891 and over

11.5% on over $127,021


Corporation Tax

The corporate income tax rate is 34%.

What is GST and HST?

They are both taxes similar to VAT (value-added tax).

The Canadian Goods and Services Tax (GST) is a tax added to the sale of all products except certain necessities' including groceries, residential rent, medical services, most farm products and livestock, most fishery products, etc. These are classed as Zero-rated (0%). You cannot charge GST/HST but you can claim input tax credits (ITC).

Harmonized Sales Tax (HST) rate is 13% and applies to the same goods and services as GST. It is the consumer who pays the GST/HST. Businesses that are registered for the GST/HST are called registrants. Of the 13%, 5% is federal and the remaining 8% is provincial.

All provinces except Alberta charge sales taxes as well. In some provinces the provincial sales taxes (PST) are harmonized with GST, others don't charge PST and the remaining provinces apply the PST to the sale price and GST. As you can see it is not standard so you will to seek advice about what to charge, if it applies to you.

You must register for GST/HST when you no longer qualify for as a small supplier because your total worldwide taxable supplies of goods and services exceed the small supplier limit of CAD$30,000 in a single calendar quarter or in four consecutive calendar quarters.

Registering for GST/HST can be done at the same time as applying for your BN. If you don't have a BN, it will be issued at the same time as the GST/HST registration number. If you are a sole trader you will be asked to supply your social insurance number (SIN). You can apply on-line at the Canadian Revenue Agency website, call +1-800-959-5525, mail or fax the necessary forms or use an accountant or visit your local Canadian Tax Office.

When do I file my GST/HST returns?

You have to file your returns according to the schedule established by your reporting period, which is issued to you by the Canadian Revenue Agency. This period is based on your annual taxable supplies of goods and services made in Canada. e.g. Annual taxable GST of CAD$1,500,000 or less.

  • Issued reporting period - annual

  • Optional reporting period - quarterly or monthly

You can file your GST/HST returns using different options:

  • Over the Internet using GST/HST NETFILE

  • By telephone using GST/HST TELEFILE

  • GST/HST EDI (electronic data interchange) filing

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