Effective tax rates for expenditure based tax incentives - Corporate in Canada
Canada: Effective tax rates for expenditure based tax incentives - Corporate was -6.33 Percentage of taxable income in 2025. ▬ Flat
Effective tax rates for expenditure based tax incentives - Corporate in Canada, 2019–2025
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of taxable income.
Analysis
The most recent figure for effective tax rates for expenditure based tax incentives - corporate in Canada is -6.33 Percentage of taxable income, measured in 2025. That is the lowest value across all 7 years on record.
The figure is down 5.7% on the previous year and down 6.6% over ten years.
Canada ranks 23rd of 50 countries on this measure, in the middle of the range.
Effective tax rates for expenditure based tax incentives - Corporate in Canada, year by year
| Year | Percentage of taxable income | Change |
|---|---|---|
| 2019 | -5.94 Percentage of taxable income | — |
| 2020 | -5.97 Percentage of taxable income | +0.5% |
| 2021 | -5.98 Percentage of taxable income | +0.2% |
| 2022 | -6 Percentage of taxable income | +0.3% |
| 2023 | -5.99 Percentage of taxable income | -0.2% |
| 2024 | -5.99 Percentage of taxable income | -0.0% |
| 2025 | -6.33 Percentage of taxable income | +5.7% |
Canada compared with similar countries
- Canada's -6.33 Percentage of taxable income is above the median for high income countries, which is -7.82 Percentage of taxable income, 81% of the median. (40 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2010s | -5.94 Percentage of taxable income | -5.94 Percentage of taxable income | -5.94 Percentage of taxable income | 1 |
| 2020s | -6.04 Percentage of taxable income | -6.33 Percentage of taxable income | -5.97 Percentage of taxable income | 6 |
Countries ranked near Canada
- 20 Italy -5.27 Percentage of taxable income compare
- 21 Finland -5.59 Percentage of taxable income compare
- 22 Sweden -5.72 Percentage of taxable income compare
- 24 Netherlands -7.12 Percentage of taxable income compare
- 25 South Africa -7.29 Percentage of taxable income compare
- 26 Belgium -7.5 Percentage of taxable income compare
More economy & growth data for Canada
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 0.8812 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 1.66 Percent per annum (2029)
- Foreign direct investment, net outflows (BoP, current US$), gaps 57.17 billion BoP, current US$ (2025)
- Foreign direct investment, net outflows (BoP, current US$), per unit 0.0246 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net outflows (BoP, current US$), per capita 1,373 BoP, current US$ per person (2025)
- Foreign direct investment, net inflows (BoP, current US$), gaps filled 69.03 billion BoP, current US$ (2025)
- Foreign direct investment, net inflows (BoP, current US$), annual 9.48 % change on previous year (2025)
- Foreign direct investment, net inflows (BoP, current US$), per unit 0.0298 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net inflows (BoP, current US$), per capita 1,657 BoP, current US$ per person (2025)
- Total reserves (includes gold, current US$), annual growth rate 4.88 % change on previous year (2025)
Frequently asked questions
- What is effective tax rates for expenditure based tax incentives - corporate in Canada?
- Effective tax rates for expenditure based tax incentives - corporate in Canada was -6.33 Percentage of taxable income in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest effective tax rates for expenditure based tax incentives - corporate recorded in Canada?
- The highest recorded value was -5.94 Percentage of taxable income in 2019.
- What is the lowest effective tax rates for expenditure based tax incentives - corporate recorded in Canada?
- The lowest recorded value was -6.33 Percentage of taxable income in 2025.
- How does Canada rank for effective tax rates for expenditure based tax incentives - corporate?
- Canada ranks 23rd out of 50 countries with data for 2025.
- Is effective tax rates for expenditure based tax incentives - corporate rising or falling in Canada?
- Over the last ten years it is down 6.6%. The long-run trend across the full record is flat.
- Where does this Canada data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Implicit subsidy (EATR). Statizoid updates them automatically from the source API.
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About this data
This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to realise on an R&D investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit. Further methodological information is available in the explanatory annex.