Government funds and taxation incentives in Canada

Canada has always been considered a dynamic profitable investment destination for investors from all around the world, as the country is developing its legislative system to accommodate the investor’s needs by reducing taxes and creating different funding programs and incentives which is major reason why investors are prospering in this country. 

– Residents of Canada who are tax residents have foreign-sourced income are eligible for a foreign tax credit relief. 

– Canada has many double taxation treaties that limit the taxes due by Canadian residents who are subject to taxation in other countries. 

– Canada offers many industry-focused tax incentives at the federal, provincial and territorial levels, where the provide tax credits for activities relating to Film, media and animation, manufacturing and processing, natural gas development, and environmental sustainability sectors. 

– Canada tops the world in incentives for Research and Development activities; the Scientific Research and Experimental Development Tax incentive provide billions of Canadian dollars to help businesses who conduct research and development activities in Canada, this program covers the program provides incentives for the direct, in-house costs for research and development activities. 

– Canada corporate tax rate is one of the lowest between the G20 countries, also the government is working towards lowering the combined federal-provincial income tax rate, so far it was reduced from 42.4 percent in 2000 to 26.7 percent in 2016.

– Canada is adapting a Global Skills strategy which facilitates the process for Canadian businesses to attract the talent they need within the global marketplace, where the country is updating its immigration laws and introducing new immigration streams that are employer-driven. 

– The Strategic Innovation Fund; this fund’s objective is to help with the growth and prosperity of Canada, it provides assistance and funding to large-scale projects (it can reach over 10 million CAD in requested contribution), it supports different business activities such as the Research and Development, Expansion of the project and technological demonstration projects.

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