Low Business Tax Environment

The KPMG Competitive Alternatives 2014 – Special Report also included a detailed analysis of corporate taxation around the world. The KPMG Total Tax Index includes corporate income taxes, capital, sales taxes as well as miscellaneous local business taxes. It also includes statutory payroll costs.
 

Total Tax Index 2014

Atlantic Canada includes:  Halifax, Moncton, Saint John and St. John’s.  It includes: corporate income, sales, property and payroll taxes.  Source KPMG Competitive Alternatives 2014 Special Report.

The four Atlantic Canadian provinces (including Sydney, Cape Breton) had the lowest overall tax environment for business compared to the rest of North America and Europe.  

Companies here can also recover sales tax (HST for Business) on products and services they purchase by claiming input tax credits. In addition, the combined federal and provincial corporate income tax rate is lower than the U.S. and European averages.

Federal Corporate Tax

Effective January 1, 2012, the corporate income tax rate fell to 15% from 16.5% of 2011 corporate income tax rate. These corporate income tax reductions, says the Department of Finance Canada, will give Canadian corporations the lowest tax rate on new business investment in the Group of Seven (G7) and the lowest statutory tax rate in the G7.

Provincial Tax Structure

Nova Scotia levies four business taxes that apply to companies with business activities in the province.

 

Tax

Rate

Authority

 

Corporate Income Tax

4.5 %

Nova Scotia’s Income Tax Act

This rate applies to taxable income earned in the province of Canadian-controlled private corporation up to the Nova Scotia business limit of $400,000

Large Corporations Tax

16 %

Nova Scotia’s Income Tax Act

This rate applies to taxable income earned in Nova Scotia that does not qualify for the small business lower rate. 

Corporation Capital Tax

4%

Corporation Capital Tax Act

Nova Scotia's Corporation Capital Tax on financial institutions (CCT) is a tax levied on the amount of capital employed in Nova Scotia by certain financial institutions.

 

Insurance Premiums Tax

3% on gross life, accident and sickness premiums

and

4% on gross premiums other than life, accident and sickness premiums

Insurance Premium Tax Act

Payments are due within sixty days of the end of each quarter


Municipal Tax Structure

The Cape Breton region is divided into counties and towns and each one levies a different tax rate on commercial business. The counties and towns include: The Cape Breton Regional Municipality, The Municipality of the County of Inverness, the Municipality of the County of Richmond, the Municipality of the County of Victoria, the Town of Port Hawkesbury and the Town of Mulgrave.