Our top cities friendly places for business
Province
Tax-friendly climate is just one of the benefits of doing business in Vancouver. Photograph by : Jon Murray, The Province
OTTAWA — Canada and its major cities are relatively tax-friendly places for business, according to a global survey by an international accounting firm.
Canada has the third-lowest tax cost for businesses among 10 countries, KPMG said in the firm’s latest guide to international business costs released yesterday.
Among the 35 major cities with populations of more than two million, Vancouver had the fourth-lowest overall tax burden, Montreal sixth and Toronto seventh.
“Vancouver‘s ranking in the top four international cities highlights one of the many benefits of doing business in B.C.,” said Tony Swiderski, head of KPMG’s Vancouver-based international tax practice.
“Recently announced cuts to the provincial corporate-tax rate should further enhance Vancouver‘s appeal.”
The national findings fly in the face of common complaints by business that Canada has an uncompetitive tax system.
Even KPMG, in a report last month, warned that Canada will need to cut taxes even more to lure new foreign investment.
“Canada has done well in reducing its federal corporate-tax rates,” said Greg Wiebe, KPMG’s Canadian managing partner for tax.
“If the provinces follow the federal lead and reduce their rates as well, Canada‘s advantage will be enhanced.”
The report compares total tax costs using a score for location expressed as a percentage of total taxes paid by firms in the U.S.
As such, a lower score is better as it means lower tax costs for businesses.
Vancouver with a score of 75.2, compares favourably with Seattle, its closest U.S. counterpart, which scored at 107.1.
The overall report assesses the general tax competitiveness of 102 cities in 10 countries, focusing on the 35 major centres, comparing their business-tax burdens, including income tax, capital tax, sales tax, property tax, local business taxes and statutory labour costs, such as employment insurance.
Among countries, Mexico and the Netherlands came in first and second, followed in order by Canada, Australia, the U.S., Britain, Japan, Germany, Italy and France. The three most tax friendly cities were located in Puerto Rico and Mexico.
Among other Canadian cities, Chilliwack scored 74 and Edmonton 63.6 and Calgary 69.3.
Separately, a survey of corporate executives ranked Canada as the fifth-best country outside the U.S. for business investment. The survey by Development Counsellors International ranked China first, India, second, Mexico third and the United Kingdom fourth.
© The Vancouver Province 2008
