Canada vs United Kingdom
Corporate Tax Comparison
Time of Update: Canada: 4/04/2026 / United Kingdom: 4/02/2026
Compare Canada and United Kingdom corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Canada vs United Kingdom Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Canada
United Kingdom
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
General CIT Rate:
1. Companies with profits exceeding £250,000 are subject to a main rate of 25% (effective from 1 April 2023).
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Return Due Date:
Tax returns need to be submitted within one year after the end of the accounting period.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
CIT Estimated Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
Withholding Tax (WHT)
Canada
United Kingdom
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Canada
United Kingdom
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the regular corporate tax rate.
Effective Tax Rate (ETR)
Canada
United Kingdom
Composite Effective Average Tax Rate:
23.74
Composite Effective Average Tax Rate:
22.55
Composite Effective Marginal Tax Rate:
13.74
Composite Effective Marginal Tax Rate:
11.51
