Income tax is imposed at the federal and provincial levels in Canada. Under the Canadian constitution, the federal government has unlimited powers of taxation. Provinces have the power to impose “direct taxation” on income earned in the province and on the worldwide income of persons who are resident in the province. Because the federal government collects both individual tax and corporate tax on behalf of most provinces, the tax base for the federal and provincial income taxes is, for the most part, the same. Provinces set their own tax rates.

type Corporate Tax - Canada