Paying Taxes 2014: The Canadian summary

View this page in: Français

For three consecutive years, Canada sits in the Top 10 global ranking for ease of paying taxes.

Out of 189 economies, Canada ranks 8th in the world when it comes to the ease of paying taxes for the average medium-sized business, according to the ninth annual Paying Taxes 2014 report. Canada’s continued successful ranking is attributed to:

  1. Significant reduction in the corporate income tax rate on annual Canadian profits in excess of CA$500,000 since 2001.
  2. Reduced corporate income tax rate on the first CA$500,000 of annual Canadian profits made by privately own corporations.
  3. Canada’s efforts to simplify electronic reporting, filing and payment, and the tax regulatory and compliance aspects of running a business (“tax red-tape”).

Paying Taxes is a unique study from PwC, World Bank and IFC. Now in its ninth year, the study provides data on tax systems in 189 economies around the world, with an ability to monitor tax reform. The ranking for each participating economy is based on the:

  • The total tax rate — firm tax liability as a per cent of profits before all taxes borne
  • Time — the number of hours per year to prepare, file returns and pay taxes
  • Payments — the number of tax payments per year
 

Ease of paying taxes

2014

8

2013

8

2012

11

2011

10

2010

28

Ease of paying taxes across the G8

Country

Overall paying taxes ranking

Total tax payments

Time to comply (number of hours)

Total tax rate (%)

Canada

8 8 131 24.3

France

52 7 132 64.7

Germany

89 9 218 49.4

Italy

138 15 269 65.8

Japan

140 14 330 49.7

Russian Federation

56 7 177 50.7

UK

14 8 110 34

US

64 11 175 46.3