Quote: (10-31-2018 10:46 AM)casa-nostra Wrote:
Guys i have quick question.
I live in Ontario , and i want to open a corporation. Do Alberta have the lowest corporation taxes % in Canada ?
If not , which province will be the most tax friendly ?
This is not actually a quick question.
As you undoubtedly know, there is the federal corporate income tax, which can be affected by an abatement.
But, to get to the provinces and territories - it's complicated. Many have dual rates that apply different rates to small businesses and large corporations. Also, you will have different rates depending on the industry. Oil & Gas, Manufacturing, and other industries have different rates.
Also, you have to factor in your personal province of residence. If you are running a home based business and you just incorporate in, say, Alberta, there is a chance Ontario might come after the corporate income as well.
These are the current split rates for provinces (for tax year 2018):
Alberta 12.0
British Columbia 12.0
Manitoba 12.0
New Brunswick 14.0
Newfoundland and Labrador 15.0
Northwest Territories 11.5
Nova Scotia 16.0
Nunavut 12.0
Ontario 11.5 or 10.0
Prince Edward Island 16.0
Quebec 11.7
Saskatchewan 12.0 or 10.0
Yukon 12.0 or 2.5
That said, in certain specific cases, there is a chance you would pay 0% provincial corporate tax in some jurisdictions.
Finally, if you are planning to farm out your incorporation to another (provincial) jurisdiction, why wouldn't you just go a step further and incorporate in another country. There are a hundred tax neutral places you could incorporate and pay NO corporate income tax. For that matter, you could incorporate in the US and set it up so you are effectively paying no tax and you have a US-based corporation. There are ways of doing this entirely legally. ***As always, consult an attorney.***
Currently out of office.