Taxes
The Canadian federal government sets a federal corporate tax rate that is uniform across the country and is combined with the Ontario tax rate.
Corporate Income Tax Rates 2009
| Corporate Income Tax Rates 2009 |
 |
| Type of Income |
Canada |
Ontario |
Combined |
|
| General |
19.0% |
14.00% |
33.0% |
| Manufacturing and Processing |
19.0% |
12.00% |
31.0% |
Federal tax corporate tax rates will continue to be lowered:
Combined Federal and State/Provincial manufacturing taxes
(Source - Ontario Ministry of Finance)
Municipal Property Tax Rates 2009
Property taxes for commercial, industrial and residential sites are calculated according to property values determined by the Ontario Property Assessment Corporation. Assessment values are multiplied by the applicable tax rate for each class of property.
The following example is based on 2009 taxation rates for an industrial occupied building with the Tax Class IT. The property is located in the Town of Petrolia, and is assessed at a value of $5,000,000. The tax rate is 0.4942615
Annual Property Taxes: $5,000,000 X .04942615 = $247,130.75
To view or download the municipal property tax rates for Sarnia-Lambton's five industrial municipalities - Lambton Shores, Petrolia, St. Clair, Sarnia, and Warwick - click here.
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R&D Tax Credits
Both Canada and the United States provide special incentives in the form of tax credits for companies engaged in qualifying R&D activities. Go to R&D Incentives in this web site for details.
Real after tax cost of a $100 R&D Expenditure
2009 taxation year |
|
Small and medium-sized non-manufacturers1
(Public, Private or Foreign-owned) |
R&D
Expenditures
($ CDN) |
R&D Expenditures
at Eligible Ontario
Research Institutes2
($ CDN) |
| Gross expenditure |
$100
|
$100.00 |
| Ontario - 10% OITC3 |
($10.00) |
(10.00) |
| Ontario - 20% OBRI tax credit4 |
|
$100.00 |
| Ontario - 4.5% ORDTC5 |
($4.05) |
(10.00) |
| Federal investment tax credit - 20% |
(%17.19) |
$100.00 |
| Tax deduction6 |
|
|
| $68.76 x 33.0% |
($22.69) |
|
| $53.48 x 33.0% |
|
($17.65) |
| After-tax cost of $100 Expenditures |
$46.07 |
$35.83 |
Source - Reviewed by Canada Revenue Agency, Ontario Region: Ministry of Finance, May/June 2008 (9/008)
1 Medium-sized companies have taxable income of less than $400,000 and taxable capital of less than $50 million.
2 Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
3 The 10% refundable Ontario Innovation Tax Credit (OITC).
4 The 20% refundable Ontario Business Research Institute Tax Credit (OBRITC).
5 The 4.5% Ontario Research and Development Tax Credit.
6 2009 tax rates for non-manufacturers: Federal 19.0% plus Ontario 14.0% = Total 33.0%.
