#

Ease of Doing Business in

Canada

Canada Download Profile (1716KB, pdf)
Region OECD high income
Income Category High income
Population 35,851,774
GNI Per Capita (US$) 47,500
City covered Toronto

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 22 20 down
2
78.57 78.79 down
0.22
Starting a Business 2 2
-
98.23 98.23
-
Dealing with Construction Permits 57 53 down
4
73.66 73.70 down
0.04
Getting Electricity 108 105 down
3
63.76 63.76
-
Registering Property 43 43
-
75.40 75.40
-
Getting Credit 7 7
-
85.00 85.00
-
Protecting Minority Investors 7 6 down
1
76.67 76.67
-
Paying Taxes 17 15 down
2
88.86 88.86
-
Trading across Borders 46 46
-
88.36 88.36
-
Enforcing Contracts 112 95 down
17
54.35 56.54 down
2.19
Resolving Insolvency 15 15
-
81.43 81.36 up
0.07

DB 2017 Rank:

17

DB 2016 Rank:

15

Change in Rank:

down2

DB 2017 DTF (% points):

88.86

DB 2016 DTF (% points):

88.86

Change in DTF (% points):

0.00

Indicator Canada OECD high income
Payments (number per year) info_outline 8 10.9
Time (hours per year) info_outline 131 163.4
Total tax rate (% of profit) info_outline 21 40.9
Postfiling index (0-100) info_outline 76.4 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Pension plan contributions 1 online 36 4.95% gross salaries 4.69
Property tax 1 online 2.7665397% assessed property value 4.20
Workplace safety & insurance contributions 1 online 4.54% gross salaries 3.67
Federal income tax 1 online 45 11% on 1st CAD 500k, 15% on remaining income taxable profits 2.52
Employment insurance contributions 0 jointly 2.632% gross salaries 2.52
Health tax 1 online 1.95% payroll in excess of CAD 450,000 1.92
Provincial income tax 0 jointly 4.5% on 1st CAD 500k, 11.5% on remaining income taxable profits 1.38
Ontario Retail Sales Tax (ORST) 1 online 8% insurance premium 0.08
Harmonized sales tax (VAT) 1 online 50 13% value added 0.00 not included
Fuel tax 1 fuel consumption 0.00 small amount
Employee Pension plan Contributions 0 jointly 4.95% gross salaries 0.00 not included
Employee Employment insurance contributions 0 jointly 1.88% gross salaries 0.00 not included
Ontario Health Premium 0 jointly 0.812315058397694% gross salaries 0.00 not included
Totals: 8 131 21
  • Answer
    Profit tax (% of profit) 3.9
    Labor tax and contributions (% of profit) 12.8
    Other taxes (% of profit) 4.5
    Answer Score
    Postfiling index (0-100) 76.4
    VAT refunds 85.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 7.5 85.0
    Time to obtain a VAT refund (weeks) 9.9 87.1
    Corporate income tax audits 73.4
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 16.0 73.4
    Time to complete a corporate income tax audit (weeks) 12.7 60.3
    Administrative appeal process
    First level administrative appeal authority Canada Revenue Authority (appeals branch)
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines Online/in printed publication
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit 90 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.