Accounting Rules

Tax Year: The calendar tax year begins on 1 January and finishes on 31 December of the same year.
A company may also choose to establish a tax year of 12 consecutive months on diffrent basis. For example: from 1 June to 31 May.
Accounting Standards: Annual accounts in Canada are drawn up based to a great extent on the Generally Accepted Accounting Principles (GAAP).
The Accounting Standards Board of the Canadian Institute of Chartered Accountants (CICA) establishes accounting and financial information standards.
Accounting Regulation Bodies: Canadian Accounting Standards Board
Accounting Reports: Financial accounts in Canada usually include a balance sheet, a profit and loss account, a statement of retained earnings and a cash flow statement.

BALANCE SHEET: 12 pre-determined consecutive months;
1) Assets
2) Liabilities
3) Shareholder balance
Publication Requirements: The recommendations in the CICA handbook apply to all Canadian companies. Specific regulations apply to banks, insurance companies and public organizations.
Reporting of financial statements and balance sheets is yearly. Companies listed on the Stock Exchange must provide quarterly financial reports.
Professional Accountancy Bodies: CICA , Canadian Institute of Chartered Accountants
CMA , Order of Certified Management Accountants
CPAB , Canadian Public Accountability Board
Certification and Auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can contact an external auditor: DELOITE & TOUCHE, KPMG.
Accounting News: EIN News on Canada

Tax Rates

Consumption Taxes

Nature of the Tax: Three types of Sales taxes: GST (federal Goods and Services Tax), HST (the Harmonized Sales Tax) and PST (Provincial Sales Tax).
Tax Rate: 5% tax on goods and services + a variable provincial tax (PST or QST) of 0 to 10%.
In Newfoundland-Labrador, in Nova Scotia and New Brunswick, the provincial sales tax and the GST are replaced by a harmonized sales tax (HST) of 13%.
Reduced Tax Rate: There are exemptions for basic foodstuffs, pharmaceutical products and education. Insurance companies apply a rate of 9% to all premiums.
Other Consumption Taxes: The law on excise tax imposes taxes on leaded or unleaded gasoline, diesel fuel and motor vehicles.
Some provinces add other taxes. For further information, consult the Department of Finance website.

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Corporate Taxes

Company Tax: 15%
Tax Rate For Foreign Companies: All firms which run a company in Canada or own Canadian goods are liable for tax. Resident or non-resident companies are taxed on their net turnover, after expenses and deductions, if they show a profit.
Capital Gains Taxation: Long term capital gains are included in taxable income and are thus subject to the same taxation as company profits.
Main Allowable Deductions and Tax Credit: Companies may amortize their capital property up to a certain percentage every year. Also general company expenses and training costs.
For further details, consult the Canadian Legal Information Institute website.
Other Corporate Taxes: Business taxes are levied by town councils. Some Canadian town councils do not levy business taxes or may offer certain exemptions. There is no fixed rate, it varies according to the council.

Country Comparison For Corporate Taxation

	Canada	OECD	United States	Germany
Number of Payments of Taxes per Year	8.0	14.2	11.0	16.0
Time Taken For Administrative Formalities (Hours)	131.0	199.3	187.0	215.0
Total Share of Taxes (% of Profit)	29.2	43.0	46.8	48.2

Source: Doing Business - Last Available Data.

Individual Taxes

Tax Rate

Federal Tax Rate	progressive from 15 up to 29% (24.2% for Québec residents).
Provincial Tax	from 10 to 24% according to revenue and province For further information, consult the Canada Revenue Agency website.

Allowable Deductions and Tax Credit: Basic federal personal deductions 9,600 CAD.
Other reductions or allowances: moving expenses, alimony, investments, medical expenses, educational expenses, etc.
Special Expatriate Tax Regime: They have a right to some exemptions in force since 2008 such as eliminations of withholding tax on arm's length interest paid or credited to non-residents.
For further information, consult the Canada Revenue Agency website.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: See the list of Fiscal treaties between Canada and other countries
Withholding Taxes: Dividends: 25%, Interest: 25%, Royalties: 25%

Sources of Fiscal Information

Tax Authorities: Canada Revenue Agency
Other Domestic Resources: Finances Québec (en anglais)
Ontario Ministry of Finance
Finance Alberta
Government of British Columbia
Saskatchewan - All ministries
Finance Manitoba
Government of New Brunswick - Ministry of Finance
Government of Prince Edward Island
Government of Nova Scotia
Government of Newfoundland and Labrador
Government of Yukon
Government of Nunavut
Government of the North West Territories

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Intellectual Property

National Organizations: The organization responsible for intellectual property in Canada is the Canadian Intellectual Property Office (CIPO).
The Copyright Policy Branch for copyright
The Intellectual Property Institute of Canada (IPIC)
Regional Organizations: North American Free Trade Agreement (NAFTA)
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Laws on Patents	20 years
Trademark Laws on Trademarks	15 years renewable
Design Laws on Designs	5 years renewable
Copyright Laws on copyright	50 years after the death of the author.	Berne convention For the Protection of Literary and Artistic Works Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Performances and Phonograms Treaty
Industrial Models Protection of industrial models	5 years

Legal Framework

Independence of Justice: Judicial power is independent; it plays an important role in the interpretation of the law; it can bring down laws which violate the constitution. The Supreme Court of Canada is the highest judicial body in the country.
The Minister of Justice has a double mandate: he is both Minister of Justice and Public Prosecutor of Canada.
Equal Treatment of Nationals and Foreigners: Canada is a constitutional State. Foreign nationals can benefit from the same treatment as citizens of the country, including in commercial disputes. Canada is considered to be one of the least corrupt countries in the world.
The Language of Justice: English and French are the two judicial languages of the country.
Recourse to an Interpreter: Thanks to the Charter of Rights and Freedoms, every person has the right to an interpreter for any court appearance in Canada. It would seem, however, that the less demographic importance a minority community has, the more difficult it is for the members of this community to exercise their linguistic rights before the judicial bodies.
Sources of the Law and Legal Similarities: The main source of the law is the constitution of the country, which is made up of different written and non-written acts, customs, judicial decisions and traditions. The judicial system is based on English Common Law, except in Quebec where it is a system of civil law modelled on French law that prevails. The judicial power plays an important role in the interpretation of the law; it can bring down laws which violate the constitution. The Supreme Court of Canada is the highest judicial body in the country.
In Quebec commercial law is modelled on the French CIVIL CODE, whereas commercial law in the English-speaking provinces is extensively inspired by English law.
Checking National Laws Online: Statutes and Regulations in Quebec
Statutes and Regulations in Canada

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Standards

National Standards Organizations: The Standards Council of Canada (SCC)
Underwriter's Laboratory of Canada
Canadian Standards Association
Integration in the International Standards Network: Member of ISO, 381 sectors, products.
Member of IEC.
Member of the International Communication Union
Consult the WSSN website
Classification of Standards: CSA marking
ULC marking
Online Consultation of Standards: StandardsStore of the Standards Council of Canada (SCC)
CSA bookstore
ISO Catalog
Certification Organizations: Canadian General Standards Board
Underwriter's Laboratory of Canada
Canadian Standards Association

Business Practices

General Information: Services for Business, Foreign Affairs and International Trade Canada.
Opening Hours and Days: Companies are closed on Saturdays and Sundays. Retail outlets are open 7/7.

Public Holidays

New Year's Day	January 1st
Good Friday (for banks, government offices)	the Friday before Easter
Easter and Easter Monday	March-April
Victoria Day	May
Saint John the Baptist	June
Canada Day	July 1st
Civic holiday	August
Labour Day	1st Monday of September
Thanksgiving Day	2nd Monday of October
Remembrance Day	November 11
Christmas Day	December 25
Boxing Day	December 26

Holiday Compensation: If a public holiday falls on a Saturday or Sunday, it is made up on the Friday before or the Monday after.

Periods When Companies Usually Close

Companies are open all year round.

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Canada: Business Environment