Print this Page Bookmark and Share

Tax Advantages

More than any other major city in North America, Toronto provides the advantages of a robust and diverse economy, a business-friendly tax structure, and a commitment to corporate success.

The City of Toronto ranked 1st of 51 major international cities surveyed in KPMG's Competitive Alternatives 2014 Special Report: Focus on Tax, which compares the total tax cost of global cities with metro area populations of at least two million.

The Report captures the total tax costs facing businesses, including income tax, capital tax, sales tax, property tax, miscellaneous local business taxes, and statutory labour costs.

The tax rates used in this study are those in effect as of January 1, 2014.

Key Findings of KPMG's Special Report: Focus, 2014:

  • Toronto is the most tax competitive major international city in the world, ranking 1st overall of 51 cities studied on the total tax index across all operations and sectors.
    • Canada is the most tax competitive country in the world, ranking 1st of ten countries surveyed with a total tax index score of 53.6. When compared to the United States, which ranked 5th, Canada's total tax costs are 46.4% lower.
  • Toronto ranks 2nd in the digital services industry and 3rd in the R&D and corporate services sectors.
    • Canada ranks 1st across digital services and R&D industry sectors, and 2nd in the manufacturing and corporate services industry sectors.
  • Toronto ranks 5th in the manufacturing industry sector.

Both the federal and Ontario governments continue to take steps to reduce Corporate Income Taxes (CIT), directly benefiting companies in Toronto. Some highlights of recent changes include:

  • General and manufacturing CIT rates lowered
  • Small business CIT rate cut from 5.5% to 4.5%
  • Small business deduction surtax eliminated
  • Capital tax eliminated for manufacturing and resource activities
  • Capital Cost Allowance (CCA) rate for computers, machinery and equipment accelerated
  • Modern, value-added single sales tax implemented
  • Ontario's Marginal Effective Tax Rate (METR) on new investment reduced by half, from 32.8% to 16.8%
  • One-time transition support for small businesses provided
  • Business costs on inputs taxable under the current system reduced

[For Tables and Downloads, click here]



Graph explains how Ontario's marginal effective tax rate will fall between 2009 and 2018 to below the OECD average.
Ontario and Canada's Net Debt-to-GDP compared to G7 countries.
report
Invest In Canada's Flagship Report: 2012
The Flagship Report provides Canada’s value proposition to foreign investors. It offers a comprehensive presentation of Canada’s conducive business environment and presents the wealth of business opportunities in 7 leading-edge sectors.
Year: 2012
Categories: Business Environment, Invest Toronto
report
Paying Taxes 2012: The global picture
Our Paying Taxes study demonstrates again that reform of tax systems around the world is continuing. There is an increasing focus on improving the administrative aspects of tax systems including the use of electronic ling and payment for tax returns, the reduction in the number of taxes per base and an increasing use of self assessment procedures.

Governments, business and civil society all benet from a fair, stable and sustainable tax system which can help to encourage growth. rticles included in this report continue to demonstrate the engagement of government with tax reform giving insights into how the Paying Taxes data has been used and providing details of the reforms that have been and are being implemented.
Year: 2012
Categories: Tax Advantages, Toronto's Cost Advantages
report
Tax Facts and Figures: Canada 2010
Tax Facts and Figures will help identity and understand the tax rates and tax changes that apply to companies.
Year: 2010
Categories: Business Costs, Incentives & Tax Advantages
report
Taxation and Tax Incentives in Ontario: Your Essential Guide
This publication is an indispensable reference tool for anyone or any entity that does business in Ontario or is considering doing business in Ontario. It will also help if you live in Ontario or might move here.
Year: 2011
Categories: Tax Advantages, Toronto's Cost Advantages
report
The Path to Prosperity: Internationally Competitive Rates and a Level Playing Field
In the report the CD. Howe Institute assess the affects of tax reduction policies of both the federal and provincial government in recent years.
Year: 2009
Categories: Business Costs, Incentives & Tax Advantages
Top of page