Capital Tax

Canada no longer imposes a federal 
capital tax. The large corporations 
tax (LCT) was eliminated effective 
January 1, 2006.

Until recently, the majority of the 
provinces also imposed a provincial 
capital tax on corporations. However, 
by July 1, 2012, all provinces except 
Saskatchewan had eliminated 
their corporate capital taxes on 
resource companies.

Saskatchewan eliminated its capital 
tax on July 1, 2008. However, large 
resource companies and resource 

trusts in Saskatchewan continue to 
be subject to a capital tax surcharge 
– the resource surcharge – equal to 
3.0% of the value of sales of potash, 
uranium, and coal produced in the 
province. (The surcharge is discussed in 

Provincial Mining Tax – Saskatchewan

.) 

Provincial capital tax is deductible in 
computing taxable income.

Land Transfer Taxes

Most of the provinces impose land 
transfer taxes on transfers of real 
property – land, buildings, and other 
improvements. The rates of land 
transfer tax vary by province and 

range from 0.25% to 2.00% of the 
consideration for the real property 
transferred. Certain exemptions 
from land transfer taxes apply to non-
arm’s-length transactions. In addition, 
transfers of resource properties are 
in many cases exempt from land 
transfer tax.

No stamp or transfer duties are 
payable on the transfer of shares. Some 
provinces may impose land transfer tax 
if a transfer of shares occurs within a 
certain period after the transfer of real 
property that was eligible for a non-
arm’s-length exemption.

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms 
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

 

Other Taxes 

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