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Want to setup a company? This will tell you about tax laws in British Columbia, Canada for a Private Corporation which is the most common legal entity in Canada.

Canada resident companies are taxed on their worldwide income. This means that both onshore and offshore income are subject to taxation. A Private Corporation in British Columbia (CA) is subject to the Federal Income Tax, at a 15% rate, and the Provincial Income Tax, which is 11%. A reduced 2.5% provincial income tax is applied to companies whose taxable income is below CAD 500,000. The effective corporate income tax for a Corporation in British Columbia is 26%. This ranks British Columbia as 124th overall in terms of corp. taxation rate internationally.

In British Columbia there is a sales tax of 7%. The federal goods and service tax is 5.00%. Resulting in an effective sales tax rate of 12%. That ranks British Columbia as 64th overall in terms of sales/value added tax rate worldwide. In terms of other taxation, an employer will contribute up to CAD 3,881.36 per month to the equivalent of a social security fund and an employee will contribute up yo CAD 3,499. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 36hours. Contributing to this is the number of yearly labor tax payments, which is 3 in CA.

Thin capitalization restrictions are officially enacted. This refers to any type of restrictions on companies' debt-to-asset ratios.
Dividends received from a Canadian taxable Corporation are usually deductible. Dividends received from foreign affiliaties may be deductible. Dividends received by a Private Corporation from a non-connected company may be subject to the special refundable tax of 38.33%. Dividends are payments of company earnings, decided by the board, to a class of its shareholders. Dividends can be one of the following cash payments, shares of stock, or other property.
50% of Capital Gains are included in taxable income and subject to Corporate Income tax normal rates. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The general interest withholding tax rate is estimated at 25%. Which means that the taxman expects relevant legal entities to pay tax on at least 25% of interests remitted abroad. The dividends withholding tax is 25%. This means that the tax authorities expects Corporation's to withhold 25% of dividend payments to non-residents. The royalties withholding tax rate is 25%. This should be interpreted usually that the relevant tax authorities expects companies to withhold 25% of payments offshore on royalties. Withholding taxes may be reduced on payments to more than 90 countries, where Canada has concluded tax treaties.
There is no known tax on wealth in Canada. There are no known inheritance taxes in CA. There are real property, transfer and gif taxes. We are aware of frequently implemented research and development breaks on taxation here.

The above is not tax or legal advice for your individual personal tax obligations. We are able to to point you to an accountant in British Columbia who can advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

North America
English (Canada), French (Canada), iu

Tax treaties

Country Type Date Signed
Isle of Man TIEA 2011-01-17
India DTC  1996-01-11
Netherlands DTC  1986-05-27
Viet nam DTC  1997-11-14
Cayman Islands TIEA 2010-06-24
Sri Lanka DTC  1982-06-29
Jamaica DTC  1978-03-30
Colombia DTC  2008-11-21
Finland DTC  2006-07-20
Namibia DTC  2010-03-25
Chile DTC  1998-01-21
Nigeria DTC  1992-08-04
Guernsey TIEA 2011-01-19
Iceland DTC  1997-06-19
Tunisia DTC  1982-02-10
Bahamas, The TIEA 2010-06-17
Saint Kitts and Nevis TIEA 2010-06-14
Aruba TIEA 2011-10-20
Norway DTC  2002-07-12
Bulgaria DTC  1999-03-03
Argentina DTC  1993-04-29
Algeria DTC  1999-02-28
Slovenia DTC  2000-09-15
Senegal DTC  2001-08-02
Russian Federation DTC  1995-10-05
Thailand DTC  1984-04-11
Saint Vincent and the Grenadines TIEA 2010-06-22
China DTC  1986-05-12
Cyprus DTC  1984-05-02
Jordan DTC  1999-09-06
Lebanon DTC  1998-12-29
Luxembourg DTC  1999-09-10
Azerbaijan DTC  2004-09-07
Slovakia DTC  2001-05-22
Anguilla TIEA 2010-10-28
Croatia DTC  1997-12-09
Italy DTC  2002-06-03
Gabon DTC  2002-11-14
Pakistan DTC  1976-02-24
Switzerland DTC  1997-05-05
Dominican Republic DTC  1976-08-06
Mongolia DTC  2002-05-27
Saint Lucia TIEA 2010-06-18
Panama TIEA 2013-03-17
Tanzania DTC  1995-12-15
Armenia DTC  2004-06-29
Guyana DTC  1985-10-15
France DTC  1975-05-02
Israel DTC  1975-07-21
Lithuania DTC  1996-08-29
Indonesia DTC  1979-01-16
Hungary DTC  1992-04-15
Poland DTC  2012-05-14
Trinidad and Tobago DTC  1995-09-11
South Africa DTC  1995-11-27
Singapore DTC  1976-03-06
Peru DTC  2001-07-20
Korea, Republic of DTC  2006-09-05
Uruguay TIEA 2013-02-05
Kuwait DTC  2002-01-28
Japan DTC  1986-05-07
New Zealand DTC  2012-05-03
Mexico DTC  2006-09-12
Estonia DTC  1995-06-02
Brazil DTC  1984-06-04
Curaçao TIEA 2009-08-29
Denmark DTC  1997-09-17
Jersey TIEA 2011-01-12
United Kingdom DTC  1978-09-08
Sint Maarten TIEA 2009-08-29
Liechtenstein TIEA 2013-01-31
Papua New Guinea DTC  1987-10-16
Bahrain TIEA 2013-06-04
Belgium DTC  2002-05-23
Egypt DTC  1983-05-30
Oman DTC  2004-06-30
Greece DTC  2009-06-29
Venezuela DTC  2001-07-10
Austria DTC  1976-12-09
Spain DTC  1976-11-23
Malta DTC  1986-07-25
Serbia DTC  2012-04-27
Romania DTC  2004-04-08
Bermuda TIEA 2010-06-14
Portugal DTC  1999-06-14
Moldova, Republic of DTC  2002-07-04
Ireland DTC  2003-10-08
Morocco DTC  1975-12-22
Malaysia DTC  1976-10-16
Zambia DTC  1984-02-16
Germany DTC  2001-04-19
Brunei Darussalam TIEA 2013-05-09
Ukraine DTC  1996-03-04
Costa Rica TIEA 2011-08-11
Turks and Caicos Islands TIEA 2010-06-22
Uzbekistan DTC  1999-06-17
Ecuador DTC  2001-06-28
Cameroon DTC  1982-05-26
Turkey DTC  2009-07-14
Zimbabwe DTC  1992-04-16
Kenya DTC  1983-04-27
Australia DTC  1980-05-21
United States DTC  1980-09-26
Barbados DTC  1980-01-22
Dominica TIEA 2010-06-29
Philippines DTC  1976-03-11
Kazakhstan DTC  1996-09-25
Hong Kong, China DTC  2012-11-11
Czech Republic DTC  2001-05-25
Bangladesh DTC  1982-02-15
Côte d'Ivoire DTC  1983-06-16
Sweden DTC  1996-08-27
Cook Islands TIEA 2015-06-15
Latvia DTC  1995-04-26
Kyrgyzstan DTC  1998-06-04
United Arab Emirates DTC  2002-06-09
San Marino TIEA 2010-10-27

Tax treaties Map



Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites,,,, is subject to our terms and conditions.


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