The Province of British Columbia has a 12% value-added tax called the Harmonized Sales Tax (HST). HST paid on business inputs can be recovered by claiming input tax credits.
Corporate and personal income taxes are levied by both the federal and provincial governments, although all taxes are filed together and paid to the federal Canada Revenue Agency. These taxes are summarized below.
Corporate Income Tax, 2010|
|
SMALL BUSINESS*
|
MANUFACTURING
|
NON-MANUFACTURING
|
|
Federal Rate |
11.0% |
18.0% |
18.0% |
|
Provincial Rate
|
2.5% |
10.5% |
10.5% |
|
Local Rate |
None |
None |
None |
|
Total |
13.5% |
28.5% |
28.5% |
* Small Business is defined as having less than $500,000 CDN of net business income.
Personal Income Tax, 2010|
|
FEDERAL
|
PROVINCIAL
|
LOCAL
|
|
Capital Gains |
7.5% - 14.5% |
2.53% - 7.35% |
None |
|
Earned Income
|
15% - 29% |
5.06% - 14.7% |
None |
|
Unearned Income (e.g. dividends) |
0.0% - 14.55% |
0.0% - 3.92% |
None |
Source: Material adapted from Invest BC (see www.investbc.com for more information).
Employers pay workers
compensation and employment insurance premiums on their company
payrolls. Workers compensation premiums are determined by the type of
business activity and average $1.90 per $100 of gross payroll for all
types of businesses. The average rate for office workers is $0.30 per
$100 of gross payroll.
Employment insurance premiums are based on gross payroll up to $39,000 per worker and the rate is 2.618%.
For a complete summary of taxation in British Columbia, see the Invest BC website.
