Paying Taxes 2013: The Canadian summary

Canada made paying taxes easier and less costly for companies

Out of 185 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 eighth annual Paying Taxes 2012 report. The federal and provincial or territorial governments in Canada have been working together to achieve an internationally competitive 25% combined federal and regional corporate income tax rate by the 2012 calendar year, in addition to reducing the tax compliance costs of Canadian corporations. This work continues, and over the past few years significant progress has been made.

Paying Taxes is a unique study from PwC, World Bank and IFC. Now in its eighth year, the study provides data on tax systems in 185 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 in Canada

Ease of paying taxes across the G8

Paying Taxes records the taxes and mandatory contributions that a medium-size company must pay in a given year as well as measuring the administrative burden of paying taxes and contributions. The project was developed and implemented as part of the Doing Business project by the World Bank and IFC in cooperation with PwC. Taxes and contributions measured include profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, financial transactions tax, waste collection taxes, vehicle and road taxes, and any other small taxes or fees. To get the key findings from Paying Taxes 2013 visit www.pwc.com/payingtaxes.