Canada ’s proven cost advantage
There are places in the world where production costs are lower than they are in Canada. But there is no other place where costs this low are enhanced by a world-class business environment. Canada offers first-class knowledge workers, access to low-cost R&D;, and easy access to huge markets.
Low Tax Rates
The Canadian government imposes the lowest burden of payroll taxes among G7 countries, which naturally lowers our overall effective corporate tax rate.
- Canada 's effective burden of corporate income taxes for manufacturing firms ranked considerably lower than the average U.S. rate.
- Lower taxes: Fiscal measures introduced in recent federal budget will provide Canada with a statutory tax rate advantage over the United States of 5.1 percentage points for manufacturing by 2010.
R&D; Advantage
Canada offers the most generous R&D; incentives in the G7 countries, with fully deductible current and capital expenditures and generous investment tax credits that are based on R&D; volume — not just incremental expenditures.
- Canada has approximately an 11 percentage points cost advantage over the United States for industries which perform research and development. Source: KPMG, Competitive Alternatives, 2006.
- Canada has lowest effective corporate income tax rates for research and development (R&D;) operations and one of the lowest corporate income tax rates for manufacturing operations. This low rate is the result of Canada’s five-year tax reduction plan which leveled the playing field between the manufacturing and service sectors and reduced the average corporate tax rate to 4.5 percentage points below the average American rate. Source: KPMG, Competitive Alternatives, 2006.
Canadian subsidiaries are eligible for tax incentives on R&D; done under contract for foreign parent companies. The Canadian government has invested more than $3 billion in recent years to ensure that the country’s universities, hospitals and other research institutions can pursue leading-edge research and train top-notch graduates.
Salary Expectations
Canada offers great career opportunities and a way of life that you can only find in Canada. Young Canadians could often earn more elsewhere. But most find that with ever-expanding opportunities in Canada, moving doesn't always make sense.
- Canada has the lowest cost of living in the G7 countries
- Canada enjoys the lowest overall labour costs in the G7. In comparison to the United States, Canada has a cost advantage of 3.5 percentage points for technical/professional labour and 6.9 percentage points for senior management. Source: KPMG, Competitive Alternatives, 2006.