BC TAX RATES

Businesses in British Columbia have one of the lowest tax rates in North America. Since 2001, British Columbia has reduced the corporate income tax rate by 27 per cent:

• British Columbia eliminated the general corporation capital tax
• British Columbia's corporate income tax rate (combined federal and provincial taxes) is typically lower than rates in the United States. The federal corporate tax rate is scheduled to drop from 19.5 per cent to 15 per cent by 2012, giving British Columbia the lowest federal corporate tax rate in the G7
• The new Harmonized Sales Tax will be introduced in July 2010. It will lower tax on new investment by 40 per cent
• Payroll taxes paid by employers average approximately half the amount paid in the United States
• Capital gains are taxed at half the rate of regular income.

InvestBC has an overview of federal, provincial and local government taxes on business.

British Columbia offers tax incentives to encourage investment and business growth.