Canada — corporate tax, VAT, and dividend treatment
Canada corporate income tax (26.5%), VAT (5%), and dividend withholding (25%), with cross-country context.
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Country notes
Federal general corporate income tax rate is 15%. The small business deduction reduces the federal rate to 9% on the first CAD 500,000 of active business income for CCPCs. Combined federal+provincial general rates are approximately 23% in Alberta, 26.5% in Ontario and Quebec, 27% in British Columbia, and up to 31% in Newfoundland and Labrador. The 26.5% Ontario combined rate is shown as the headline figure; refer to the country profile notes for province-specific rates.
Key data
| Corporate income tax | 26.5% |
|---|---|
| Standard VAT | 5% |
| Dividend withholding (default) | 25% |
| Currency | CAD |
| EU member | No |
Quick answer
Canada's corporate income tax is 26.5% — worse than the covered-country median (22%) and worse than the EU-member median (25%). It ranks #12 of 13 (lower is better).
Where Canada stands
- Canada — Corporate income tax
- 26.5%
- Rank
- #12 of 13
- Better than
- 8% of covered countries
- Covered-country median
- 22%
- EU-member median
- 25%
- Best (United Arab Emirates)
- 9%
- Highest (Germany)
- 30%
Regional peers — North America
North America countries covered by GeoBusinessIQ, ordered by Corporate income tax (lower is better).
| Country | Corporate income tax |
|---|---|
| United States | 21% |
| Canada | 26.5% |
How this context is computed
Context is computed from the GeoBusinessIQ country dataset using Corporate income tax (lower is better). Median is a simple median across all covered countries; the EU-member median covers EU members only. Figures are descriptive data drawn from the cited sources — not tax, accounting, or legal advice.
Model the numbers for Canada
Methodology
Applies the headline corporate income tax rate from the country profile to the entered profit before tax. Reduced rates, SME thresholds, surtaxes, dividend layers, and jurisdiction-specific deductions are not modelled. Result is an estimate for orientation, not tax advice.
These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.
Data limitations
- Corporate tax figures apply the headline statutory rate only — they exclude deductions, loss carry-forward, incentives, local surtaxes, and effective-rate timing.
- VAT figures are standard rates only; reduced and zero rates, registration thresholds, and sector exemptions are not modelled.
- Dividend tax reflects the default non-treaty rate; treaty relief and participation exemptions are not modelled.
Related
Canada across topics
Best-country guides
Rankings
Comparisons
Methodology
Country profile
Other countries in North America
Sources
- Canada Revenue Agency — Canada Revenue Agency (accessed )
- OECD — OECD — economic and tax statistics (accessed ; reviewed )Covers: Comparable corporate tax, statutory rate, and economic indicators across member and partner economies.Does not cover: Effective tax rates, deductions and incentives, local surtaxes, and personal residency rules.Why it matters: Used as a cross-country baseline to sanity-check rates against primary tax-authority figures.Review cadence: Annual, plus on major statutory changes.
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed ; reviewed )Covers: Corporate income tax, VAT, and dividend withholding rates across most covered jurisdictions.Does not cover: Your specific effective rate, bespoke incentives, rulings, or transactions requiring professional advice.Why it matters: Used to triangulate rates against primary tax-authority sources, not as the sole authority.Review cadence: Updated by the publisher per tax year; re-checked each data review.
- Stripe — Stripe — supported countries (accessed ; reviewed )Covers: Countries where Stripe supports first-party account creation.Does not cover: Per-account approval outcomes, supported business categories, or pricing; availability can change without notice.Why it matters: Used as the primary signal for the stripeAvailable field driving payments-weighted scorers.Review cadence: As published by the vendor; re-checked each data review.
- Wise — Wise — service availability (accessed ; reviewed )Covers: Countries where Wise Business multi-currency accounts are available.Does not cover: Individual onboarding decisions, feature availability per region, or fees; availability can change over time.Why it matters: Used for the wiseAvailable field, the EMI-fallback signal in banking and payments scorers.Review cadence: As published by the vendor; re-checked each data review.
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