Canadian companies are taxed on their worldwide income. However, it is possible to significantly reduce taxation exposure by creating and properly managing a structure that involves the use of a locally-registered company, in conjunction with an overseas principal.
Correctly structured, no tax exposure will arise where income is from non-Canadian sources and no activities in connection with the trading or overseas asset(s) being held have taken place in Canada.
Other notable features of the local taxation system are:
- Corporation tax rate of 28.5%
- An extensive network of double taxation treaties
Pearse Trust provides access to local taxation expertise to enable clients to plan their tax affairs and ensure compliance with company law.