Canada - Overview (2024)

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Overview

Last reviewed - 21 June 2024

Canada is the largest country in the western hemisphere and one of the largest in the world. Located in the northern part of North America, Canada extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. It has a stable government, a skilled workforce, and its residents enjoy a high standard of living. The country has a well-developed transportation system and is rich in natural resources. Canada's official languages are English and French, and Ottawa is its federal capital. A parliamentary democracy, the country is divided into ten provinces and three territories. The official currency is the Canadian dollar (CAD).

Canada has a thriving free-market economy, with businesses ranging from small owner-managed enterprises to multinational corporations. Canada's economic development was historically based on the export of agricultural staples, especially grain, and on the production and export of natural resource products, such as minerals, oil and gas, and forest products. However, secondary industry has evolved to the stage where Canada ranks as one of the top manufacturing nations of the world. The service industry has also expanded rapidly and has transformed the Canadian economy from one based primarily on manufacturing to one with a significant service-based sector. Canada is among the world's major trading nations, with the United States (US) its primary trading partner.

Canada has abundant natural resources, a skilled labour force, modern capital plant, and a strong banking system, but the volatility ofcrude oil prices has takena considerable toll on the oil and gas sector and the country’s overall economy. A lower Canadian dollar in recent years has encouraged growth inCanada’s manufacturing sector, with higher exports to the United States.

The Canadian economy has generally recovered quickly from its temporary contraction during the COVID-19 pandemic. Interest rates, which were reduced sharply in March 2020, with the intent of limiting the economic fallout created by the pandemic, have risen quickly as the Bank of Canada tries to curb the high inflation rates currently faced by consumers. Canada's employment rate and gross domestic product (GDP) have recovered to (and surpassed) pre-pandemic levels, signalling positive economic strength in the face of current obstacles like labour shortages and supply chain restrictions and defying expectations of a recession.

In Canada, PwC has more than 7,700 partners and staff in locations from St. John's on the Atlantic coast to Vancouver on the Pacific. With more than 110 years of excellence in Canada, we provide industry-focused professional services, including audit and assurance, tax, deals, and consulting targeting solutions for cybersecurity,privacy, financial crime, workforce of the future, finance transformation, value creation, strategicreassessment, and cost optimisation.PwC in Canada works with companies of all sizes and in all industries to help tailor solutions using local knowledge and global experience. We work as one firm to provide quality services and products that help solve important problems.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

Federal CIT: 15%. Provincial and territorial CITs range from 8% to 16% and are not deductible for federal CIT purposes.

Corporate income tax (CIT) due dates
CIT return due date

Six months after the company's taxation year end.

CIT final payment due date

Generally, two months after the company's taxation year end.

CIT estimated payment due dates

Tax instalments are generally due on the last day of each month.

Personal income tax (PIT) rates
Headline PIT rate (%)

Federal top rate: 33%.

Provincial/territorial top rates range from 11.5% to 21.8%.

Personal income tax (PIT) due dates
PIT return due date

30 April (15 June for self-employed individuals)

PIT final payment due date

30 April

PIT estimated payment due dates

If applicable, 15 March, 15 June, 15 September, and 15 December.

Value-added tax (VAT) rates
Standard VAT rate (%)

Combined federal and provincial/territorial sales taxes range from 5% to 15%.

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: NA;

Non-resident: 25 / 25 / 25, may be reduced by treaty and to 0% for most interest paid to arm's-length non-residents.

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

Half of a capital gain (proposed to increase to two thirds for dispositions after 24 June 2024) constitutes a taxable capital gain, which is included in the corporation's income and taxed at ordinary rates.

Headline individual capital gains tax rate (%)

Half of a capital gain (proposed to increase to two thirds for the portion of capital gains realised by individuals after 24 June 2024 that exceeds an annual CAD 250,000 threshold) constitutes a taxable capital gain, which is included in the individual's income and taxed at ordinary rates.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NA

Headline gift tax rate (%)

NA

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Canada contacts

Canada contacts
Canada News

Canada - Overview (4)

Ken Buttenham

National International Tax Services Leader (Tax Partner), PwC Canada

+1 416 869 2600

Canada - Overview (5)

Ryan Thulien

Corporate Tax Leader (Tax Partner), PwC Canada

+1 416 869 2342

Canada - Overview (6)

Jyothi Rao

Partner, Tax Private Client Services, PwC Canada

+1 604 495 8934

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Canada - Overview (2024)

FAQs

What is the summary of the country of Canada? ›

The world's second-largest country by surface but relatively small in terms of population, Canada punches above its weight in economic terms. A federation of former British colonies, Canada follows the British pattern of parliamentary democracy.

What is the brief description of Canada? ›

Canada has a varied landscape, with majestic mountains, rolling plains, forested valleys, and beautiful blue rivers and lakes. The Canadian Shield, a hilly region of lakes and swamps, stretches across northern Canada and has some of the oldest rocks on Earth. In Canada's far north lies the frozen Arctic.

What is Canada best known for? ›

What is Canada famous For?
  • Jasper National Park. Jasper National Park in Alberta is known for its snowy mountains and beautiful scenery. ...
  • Niagara Falls. Niagara Falls is a must-visit spot in Canada. ...
  • Poutine. ...
  • Vancouver. ...
  • World's largest coastline. ...
  • Maple syrup. ...
  • Ice hockey. ...
  • Northern lights.
Jan 11, 2024

What are 5 interesting facts about Canada? ›

Did You Know? 20 Fun Facts About Canada
  • Canada is the second-largest country in the world. ...
  • One of the longest highways in the world is in Canada. ...
  • Canada is a bilingual country. ...
  • Churchill, Manitoba, is the "Polar Bear Capital of the World." ...
  • Canada crosses six time zones. ...
  • Canada has the longest coastline of any country.
Apr 30, 2024

Why Canada is so important? ›

Canada is one of the world's safest countries. Canada is well-known for its hospitality, affordable, high-quality education and inclusive, multicultural spirit. The United Nations consistently ranks Canada as one of the world's best places to live.

Is Canada bigger than the US? ›

The land area of Canada is 3, 855, 103 square miles compared to America's 3, 794, 083, making Canada 1.6% larger that the States. Even though Canada is a larger country, the United States has a population of 307,212,123 people compared to 33,487,208 people in Canada in 2010.

How can I describe Canada? ›

It is the second largest country in the world, but it has only one-half of one percent of the world's population. Canada features black-blue lakes, numerous rivers, majestic western mountains, rolling central plains, and forested eastern valleys.

What words best describe Canada? ›

Some adjectives that describe Canada as an open and friendly country are:
  • Welcoming: Canada is known for its warm and hospitable people who embrace diversity and multiculturalism. ...
  • Peaceful: Canada is a peaceful nation that values democracy, human rights and the rule of law.
Mar 13, 2023

What is typical about Canada? ›

Canada is often characterized as being "very progressive, diverse, and multicultural". Canada's federal government has often been described as the instigator of multicultural ideology because of its public emphasis on the social importance of immigration.

Why is Canada so special? ›

High quality of life. Canada sets a high standard for quality of life with low crime rates and a stable, peaceful society. The country is rated above average for health, wellbeing, income and education, making it very appealing to international students.

What food is Canada known for? ›

10 Quintessentially Canadian Foods
  • Bannock. A satisfying quick bread steeped in Canadian history, basic bannock is flour, water and butter (or lard) that is shaped into a disc and baked, fried or cooked over a fire until golden. ...
  • Nanaimo Bars. ...
  • Maple Syrup. ...
  • Saskatoon Berries. ...
  • Caesars. ...
  • Ketchup Chips. ...
  • Montreal Smoked Meat. ...
  • Lobster.

What is the number one tourist attraction in Canada? ›

Niagara Falls

What is the summary of Canada? ›

Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's second-largest country by total area, with the world's longest coastline.

What is Canada unique for? ›

Canada is known for its breathtaking landscapes and natural wonders, providing a unique backdrop for your study-abroad experience. From stunning national parks to picturesque cities, there's plenty to explore during your time here. Canada consistently ranks high on global quality of life indexes.

What is the main culture of Canada? ›

In its broadest sense, Canadian culture is a mixture of British, French, and American influences, all of which blend and sometimes compete in every aspect of cultural life, from filmmaking and writing to cooking and playing sports. Other peoples have added distinctive elements to this mixture.

What is the brief history of Canada? ›

The Dominion of Canada formed in 1867, but as an integral part of the British Empire its foreign relations remained under the control of London. Over the next six decades Canada gradually won greater control over its external affairs, spurred in part by the demands of managing its relationship with the United States.

What I like about Canada in a paragraph? ›

No one can take that away from me. Canada is a unique country that provides many things to its citizens. There is a sense of unity, a sense of security, and most of us have a distinct sense of national identity. We have fresh air and clean land, and we are a free country, where we can speak our minds without fear.

What is Canada's climate summary? ›

The northern part of Canada is extremely cold, with summer lasting less than two months, but almost all Canadians live near the southern border where the weather is warmer. The climate around Vancouver, on Canada's west coast, is rainy and temperate. It rarely snows except in the mountains.

How and why was the country of Canada created? ›

English- and French-speaking colonists struggled to get along, and Great Britain itself found that governing and financing its far-flung colonies was expensive and burdensome. For those reasons, Great Britain united three of its colonies, Canada, Nova Scotia and New Brunswick, into the Dominion of Canada in 1867.

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