Canada Tax Stimulus

On March 12, 2009, the Canadian Bill C-10 received Royal Assent. The Bill is an essential part of the government’s Economic Action Plan, which aims to "stimulate economic growth, restore confidence and support Canadians and their families during the synchronized global recession".

The plan reduces the tax burden on Canadian individuals, families and businesses to provide C$20 billion in additional personal income tax relief over 2008-09 and the next five fiscal years. The government is also committed to "long-term business tax reductions with the general corporate tax rate reduced to 19% as of January 1, 2009".

Canada ranks the 8th out of 181 economies on the ease of Doing Business 2009 and the 28th in Paying Taxes. Just in 2007, Canada reduced the corporate income tax rate, abolished a surtax of 1.12% and increased the depreciation rate for various assets.