Taxes
Annual Real Estate Property Tax Rate
Commercial (distribution) facilities properties in Niagara are taxed at between 3.39 and 4.50 percent of their assessed value (2005). Rates vary between Niagara’s twelve local municipalities. Industrial properties in Niagara are taxed at between 5.98 and 8.08 percent of their assessed value (2005). Rates vary between municipalities. Industrial property tax rates are expected to continue to decrease in 2006.
Source: http://www.niagaracanada.com, http://www.regional.niagara.on.ca/
Annual Personal Property Tax Rate
Residential properties in Niagara are taxed at between 1.29 and 1.96 percent of their assessed value (2004). Rates vary between Niagara’s twelve municipalities.
Source: www.niagaracanada.com, http://www.regional.niagara.on.ca/
Sales Tax Rate
The six per cent Federal goods and services tax (GST), is a tax on final consumption applicable throughout the production and distribution chain. Businesses charge GST on domestic sales, but can recover GST they pay on supplies, inventories, assets and services used to do business. Some goods and services are exempt from the GST such as: exports, basic groceries, prescription drugs, medical devices and agricultural and fishery products. The Ontario provincial sales tax (PST) of eight per cent applies to most goods and select services. Significant exemptions include food, children’s clothing, and energy, as well as exemptions to production and research and development machinery and equipment.
Source: http://www.2ontario.com/facts/fact09.asp
Corporate Income Tax Rate
Ontario’s manufacturing and resource industries are subject to a 12.12 per cent Provincial tax rate. When combined with the Federal Manufacturing & Processing (M&P) rate of 22.12 per cent, a corporation earning manufacturing income in Ontario is taxed at a rate of only 34.12 percent. By way of comparison, this combined rate is generally less than the combined statutory U.S. Federal and state tax rates.
Source: http://www.2ontario.com/facts/fact09.asp
Personal Income Tax Rate
The following chart summaries the combined tax rates for both the Ontario and Federal Marginal Tax Rates:
Scientific Research and Experimental Development Program (sR&eD Tax Credits)
The Scientific Research and Experimental Development (SR&ED) Program is a joint federal/provincial tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved or technological advanced products or processes. Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead and SR&ED contracts. Generally Canadian-controlled private corporations with less than $200,000 in taxable income can receive a refundable investment tax credit of 20% of qualifying SR&ED expenditures. More information can be obtained from the website www.cra-arc.gc.ca/taxcredit/sred.
