Québec below national average in corporate taxes

Québec is below the Canadian average in general corporate income taxes with a combined federal-provincial rate of 29.9 percent for the year ending December 31, 2010.

The average across the country is 30.7 percent. Québec also provides special tax "holidays" for business that undertake major investments and locate manufacturing or processing in remote regions.

To support its universities and entrepreneurship, the province also provides incentives to those commercializing intellectual property developed in Québec universities or public research centres.

The province offers a 25 percent production services tax credit on all qualifying production costs. Incentives are also available for film dubbing, up to 35 percent on eligible labour, as well as a 20 percent computer animation and special effects tax credit on all qualifying labour costs.

These are among the facts and figures in PricewaterhouseCoopers' annual publication, Tax Facts and Figures, which is a reference tool to help readers understand the personal and corporate tax rates and changes across Canada.

Here are some of the highlights among the other provinces:

British Columbia
Those making $70,000 in ordinary income (e.g. salary or interest) in 2010, from a personal income tax perspective, are best off living in British Columbia where the combined federal and provincial tax is below $15,000. Ontario has the second-best rate at $15,492 while Alberta has the third lowest rate at $16,292. British Columbia provides both a 21 percent film incentive tax credit on all qualifying production costs and a 33 percent production services tax credit on qualified B.C. labour. As well, the province is introducing a 17.5 percent interactive digital media tax credit.

This year's updated version shows that Alberta is the place to be for those planning to leave an inheritance to their children. Its probate fees are extremely low - $400, regardless of the value of the estate. For estates valued at $500,000, Prince Edward Island and New Brunswick have probate fees that are quite reasonable compared to other provinces at $2,000 and $2,500 respectively; the average in Canada is over $3,500.
Taxpayers making $150,000 in ordinary income (e.g. salary or interest) in 2010, are best off living in Alberta where the combined federal and provincial tax this $45,304. The province's general corporate tax rate is the lowest among the provinces with a combined provincial-federal tax rate of 28 percent. Alberta also offers a grant of 20 to 29 percent for all eligible film production costs in the province.

Ontario offers generous tax incentives for research and development and entertainment and media tax credits. Ontario corporations will also benefit from scheduled corporate tax reductions; the combined federal/Ontario general corporate tax rate will fall by almost 6 percentage points, dropping to 25 percent by July 1, 2013.

Ontario also provides incentives for businesses that commercialize intellectual property developed by Canadian universities, colleges or research institutions. The province offers a 25 percent production services tax credit on all qualifying production costs as well as a 40 percent Ontario interactive digital media tax credit and a 35 percent Film and Television Tax credit (higher for first-time producers if principal photography is outside the Greater Toronto Area).

New Brunswick
New Brunswick land transfer tax rates are tops for eastern Canadian provinces where the tax is $1,065 for a $400,000 home. It's almost as inexpensive in Newfoundland where the cost is $1,698. The average land transfer cost for a $400,000 home in Canada is approximately $3,500.

The province offers a 40 percent film tax credit on qualifying salary and wages and also a regional bonus tax credit of 10 percent for qualifying labour costs. The combined federal-provincial corporate income tax rate in New Brunswick is among the lowest in Canada at 29.5 percent for 2010. This combined rate will be decreasing to 23 percent by 2013. Similar to the other Atlantic Provinces, New Brunswick also offers a fully refundable 15% research and development tax credit to corporations that incur qualified SR&ED expenditures in the Province.

Tax Facts and Figures includes Canadian tax changes and withholding tax rates affecting taxpayers engaged in international transactions. It also provides U.S. corporate and personal income tax rates, as well as U.S. estate tax rates.