DIP Ontario
Ontario's Competitive Advantages
Ontario's Next Generation Of Jobs Fund [English] [French]
ICT Brochure [English]
Canadian Interactive Industry Profile 2006 [English]
Canada offers the most favorable tax treatment for R&D among the G-7 countries
Combined Federal & Provincial tax credits can cut R&D expenditures up to 65%
Net After-Tax Cost of Performing Research & Development
|
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| Small Corporations* | Ontario* |
Large Corporations~ | Ontario~ | |
| Federal Tax Savings | Federal Tax Savings | |||
| R&D expenditures | $ 1,000 |
R&D expenditures | $ 1,000 |
|
| Provincial ITC | $ (149) |
Provincial ITC | ||
| 851 |
$ 1,000 |
|||
| Federal ITC @ 35% | $ (468) |
Federal ITC @ 20% | $ (297) |
|
| Federal tax deduction | $ 383 |
Federal tax deduction | $ 703 |
|
| Federal taxes saved | $ 50 |
Federal taxes saved | $ 155 |
|
| Provincial Tax Savings | Provincial Tax Savings |
|||
| R&D expenditures | $ 1,000 |
R&D expenditures | $ 1,000 |
|
| Federal ITC | Federal ITC | |||
| Provincial ITC | $ (149) |
Provincial ITC | ||
| Provincial tax deduction | $ 851 |
Provincial tax deduction | $ 1,000 |
|
| Provincial taxes saved | $ 47 |
Provincial taxes saved | $ 140 |
|
| Total Tax Savings | Total Tax Savings |
|||
| Federal tax savings | $ 518 |
Federal tax savings | $ 452 |
|
| Provincial tax savings | $ 196 |
Provincial tax savings | $ 140 |
|
| Total savings | $ 714 |
Total savings | $ 592 |
|
| Net after-tax cost of R&D | $ 286 |
Net after-tax cost of R&D | $ 408 |
|
Source: KPMG 2006-2007 Tax Facts
