Tax
The North Peace Tax Advantage
The Peace River Regional DIstrict and our Municipalities already have a competitive tax rate structure for business and industry.
British Columbia’s Tax Advantage
By registering an international business (IB) in B.C., a company can receive up to a full refund on provincial corporate taxes paid on the income of the qualifying business (75% on patent income to a maximum of $8 million) For more details visit www.ifcbc.com
- Effective January 1, 2010, British Columbia’s corporate tax rate was reduced to 10.5% from 11%. The corporate tax rate will be further reduced to 10% as of January 1, 2011.
- British Columbia’s has no capital tax.
- A number of major personal income tax reductions have also been enacted in British Columbia, reducing income tax rates by a third with the result that as of January 1, 2010, British Columbia will have the lowest personal income tax rates in Canada for incomes up to $118,000.
Canada’s Tax Advantage
Over the past eight years, the Federal government has reduced corporate tax rates in Canada by 30%. The most recent reduction was announced in 2007: the corporate tax rate is being reduced from 22.12% to 15% by 2012. The rate for 2010 is 18.0% and rates for the next years are being phased in on January 1: 2011 16.5% 2012 15.0%
Other measures undertaken by Canada to improve the business environment:
- The corporate surtax was eliminated for all corporations January 1, 2008.
- The federal capital tax on large corporations was eliminated January 1, 2006.
- Eligible arm’s length interest payments are not be subject to domestic withholding tax as of January 1, 2008.
- Eligible corporations can report their income for Canadian tax purposes in a functional currency other than the Canadian dollar.
