Canada

Canada's Rankings
CategoryRankScore
Overall Rank1567.03
Corporate Taxes2055.41
Individual Taxes2562.42
Consumption Taxes784.01
Property Taxes2060.75
International Tax Rules1876.59

Canada ranks 15th overall on the 2019 International Tax Competitiveness Index, five spots better than in 2018.


Strengths

  • Consumption taxes are low, and the associated compliance burden is near the average for OECD countries.
  • Canada allows businesses to immediately write off investments in machinery and to write off a larger share of investments in buildings than most other OECD countries.
  • Canada does not levy wealth, estate, or inheritance taxes.

Weaknesses

  • The personal tax on dividends is 39.3 percent, well above the OECD average of 23.8 percent.
  • Canada taxes capital gains at a rate of 26.8 percent, while the OECD average is 19.6 percent.
  • The corporate rate of 26.8 percent is above average among OECD countries (23.6 percent).

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