Investors' Guide

Ontario Advantage

Ontario, Canada’s highly competitive business costs can boost your company’s growth and profitability.

Ontario’s business costs, low corporate taxes and business-friendly environment are among the reasons we ranked in the top three regions in North America for foreign direct investment in 2012.

When you do business in Ontario, your bottom line benefits from generous government incentives and credits, as well as competitive corporate taxes, labour costs, R&D costs and more.

Competitive Corporate Taxes

Ontario’s corporate income tax rate (CIT, provincial and federal combined) is lower than the average of G8 and G20 countries and lower than the average federal-state CIT rate in the United States.

You’ll save more money here – money you can use for further investments in operations, research and growth.

Review Taxation and tax incentives in Ontario: Your essential guide, an indispensable reference tool for anyone or any entity that does business in Ontario or is considering doing business in Ontario.

 

Incentives Programs for Business

Ontario offers incentives programs, including credits and business and tax incentives, for a range of industries and operations such as research and development. The province has also introduced generous venture capital funding for some business activities.

Competitive labour costs

You’ll leverage the benefits of one of the best workforces in the world, but at a competitive cost.

Labour costs in Canada, including wages and salaries, employer-paid statutory plans, payroll taxes and other employment benefits are among the lowest of the G7 countries. In fact, among the G7, total costs per employee in Canada rank the second lowest.

Competitive R&D costs

If research and development is vital to your business, you should know that Ontario’s R&D tax incentives are some of the most generous among industrialized countries.

Ontario’s R&D Tax Program can reduce the after-tax cost of every $100 spent in R&D to between $56 and $39, when combined with federal R&D tax incentives.

TOP 5 FDI DESTINATIONS IN NORTH AMERICA IN 2012

Ontario continues to far outperform its competitors as the number one jurisdiction in North America in attracting foreign direct investment projects per capita amongst major states and provinces, according to a report recently released by the Financial Times’ fDi Intelligence think-tank. The report showed that in 2012, Ontario attracted over 7 per cent of total FDI value in North America.

 

State / Province Number of Projects Population Rank in Projects/Capita
Ontario 123 13,505,900 1
New York 146 19,570,261 2
California 205 38,041,430 3
Texas 116 26,059,203 4
Florida 66 19,317,568 5

Source: fDi Report 2013, statistics Canada and US Census Bureau