RISK: Canada ranks ninth in ease of tax-paying

Canadian companies spend an average of 131 hours working to comply with tax requirements

Canada ranks as the ninth-easiest country in which to pay taxes worldwide, a PwC and World Bank Group report reveals. With the UK ranked at number 15, the U.S. at 53 and Germany at 72, Canada is leading the G7 pack.

“The Canadian government is committed to creating a tax-competitive and business-friendly environment for small-medium sized domestic companies,” says Peter Van Dijk, PwC Canadian Tax Policy leader, PwC Canada. “The implementation of various tax programs help to support and encourage the creation of more such businesses.”

On average, Canadian companies make eight tax payments a year and take 131 hours to comply with their tax requirements. Globally, the averages are 25.6 payments and 261 hours respectively.

The report also found that at 21.1 percent, Canada’s total tax rate for companies is far below the global average of 40.8 percent. Mexico’s total tax rate is 51.7 percent and in the U.S., it’s 43.9 percent.

 

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.