“Improving the regulatory climate is a key requirement for attracting new investment and building a more competitive economy. The B.C. business community strongly endorses the work government is doing on regulatory reform.”
– Jock Finlayson, Executive Vice-President, Business Council of British Columbia
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Competitive, Flexible, Supportive
British Columbia offers one of North America’s most competitive business climates - low tax burdens, a minimum of red tape, and a supportive, financially responsible government.
The provincial government has introduced dramatic changes designed to strengthen the economy and make British Columbia the best place to invest in North America.
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Personal income taxes have been cut more than 33 percent since 2001 on taxable income under $120,000/year. B.C. residents now pay the least income tax in Canada for incomes up to $111,000. |
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Since 2001 the general corporate income tax rate has fallen one-third to 11 percent (effective July 2008) - lower than our major competitors in Canada and the U.S. The federal corporate tax rate of 19.5 percent is scheduled to decline to 15 percent by 2012 - lowest in the G7. |
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BC has no general corporation capital tax, employer payroll taxes, franchise tax, or machinery sales tax. |
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BC provides refundable tax credits and exemptions for software development, manufacturing, mining, oil and gas, film and TV production, new media and international financial activities. |
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| Business tax burdens in British Columbia are now among the lowest anywhere in North America, and our personal tax rates are competitive. |
REDUCING TAXES TO ATTRACT INVESTMENT AND TALENT
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Personal income taxes have been cut more than 33 percent since 2001 on taxable income under $120,000/year. B.C. residents now pay the least income tax in Canada for incomes up to $111,000. |
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Since 2001 the general corporate income tax rate has fallen one-third to 11 percent (effective July 2008) - lower than our major competitors in Canada and the U.S. The federal corporate tax rate of 19.5 percent is scheduled to decline to 15 percent by 2012 - lowest in the G7. |
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BC has no general corporation capital tax, employer payroll taxes, franchise tax, or machinery sales tax. |
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BC provides refundable tax credits and exemptions for software development, manufacturing, mining, oil and gas, film and TV production, new media and international financial activities. |
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| Business tax burdens in British Columbia are now among the lowest anywhere in North America, and our personal tax rates are competitive. |
TOP MARGINAL CORPORATE INCOME TAX RATES
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British Columbia |
30.50% |
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Ontario |
33.50% |
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California |
40.75% |
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*Effective July 1, 2008
TOP MARGINAL PERSONAL INCOME TAX RATES
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British Columbia |
43.7% |
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Ontario |
46.4% |
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California |
44.3% |
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Source: PricewaterhouseCoopers, Tax Facts and Figures, 2004
MAKING IT EASIER TO DO BUSINESS
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Employment Standards legislation allows employers and employees to develop mutually beneficial shift schedules outside the standard 8-hour day or prescribed shift rotations. |
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43 percent of all provincial regulations have been eliminated since 2001, substantially reducing compliance costs for business. |
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Streamlined provincial permitting and licensing requirements to help accelerate major resource and resort developments. |
FURTHER INVESTMENTS IN THE FUTURE
- BC’s Major Projects Inventory contains 835 projects, underway and proposed, involving capital investment exceeding $150 billion (December 2007).
- Between 2008 and 2011 the province anticipates transportation infrastructure investments of $3.0 billion including roads, bridges, border crossing infrastructure, rapid transit, airports and port development.
- British Columbia’s Public Transit Plan calls for investments totalling $14 billion to 2020 in new rapid transit lines, energy efficient RapidBus services and purchases of 1500 clean energy buses. The plan touches every region of the province and is a key measure for reducing greenhouse gas emissions.
- $228 million has been allocated to government funded arts and culture initiatives over four years.
- $109 million is committed over four years to economic development initiatives. $40 million is for promoting, expanding and servicing investment, trade and culture links between BC and Asia Pacific countries.
Balanced Budget 2008 delivers, over four years, $428 million in new investments and an additional $407 million in tax reductions to enrich our communities, improve British Columbia’s competitiveness, and build on our economic strengths.
For example:
- $112 million to enhance the basic and regional film tax credits to support B.C.’s film industry;
- $220 million to phase out the existing capital tax on financial institutions and replace it with a minimum tax;
- $60 million to reduce the school tax rate for major industrial properties to reflect the competitive pressures facing B.C.’s export sector; and,
- $60 million to support research and innovation through GenomeBC and to upgrade and expand Science World;
- $30 million to endow the Terry Fox Research Centre, to be headquartered in B.C., for translational research to help in the fight against cancer;
- $7 million to expand the Provincial Nominee Program and attract more skilled workers and entrepreneurs to British Columbia;
- $5 million to enhance the Skills Connect for Immigrants and International Qualifications programs to connect skilled immigrants with employment opportunities;
- $183 million in economic investments are being made as part of the $1 billion in new funding for climate action initiatives.
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