Competitive Business Costs
Built for
growth
Canada is one of the best places in the world to do business. Global companies are drawn by competitive operating costs and business-friendly tax incentives.
When you expand in Canada, you benefit from the lowest marginal effective tax rate (METR) on new business investment in the G7. An important measure of overall tax competitiveness, Canada’s METR is lower than the U.S. and the OECD average.
Discover how investing in Canada will lower your business costs and help you stay competitive.
Ahead of the competition
Get cost advantages in Canada
Canada offers a business environment designed for growth, with tax advantages that are among the best in the world. Business and labour costs are competitive, while inflation stays low and stable thanks to the government’s monetary policy.
Companies in Canada benefit from other business-friendly advantages, including some of the lowest industrial electricity rates among G7 countries and a favourable exchange rate on the Canadian dollar.
Low corporate tax rate
Keep costs contained with one of the lowest federal income tax rates in the G7
Tariff-free zones
Get tariff-free access for manufacturing machinery and equipment
Rich natural resources
Explore one of the world’s most resource-rich economies.
Grow with us: Programs, incentives and tax credits
Get more support for your business in Canada – from incentives to tax credit programs. You’ll find one of the most generous research and development tax incentives in the G7, covering up to 15% of your company’s R&D costs.
A multibillion-dollar program supports large-scale transformative and collaborative projects. Your company can even write off up to 100% of new machinery and equipment costs.
Canada investment highlight
Michelin awards Canada a star for its business climate
For more than 50 years, Michelin has invested and reinvested in Canada, starting with its first North American plant in Pictou County, Nova Scotia in the 1970s. Since then, the company added 3 more manufacturing facilities, 3 corporate offices and a distribution centre.
In 2023, Michelin announced a $300 million investment in its Nova Scotia operations to expand and modernize production, support the transition to energy-efficient manufacturing and create skilled jobs. Canada’s business climate is a key reason the company is strengthening its Canadian footprint.
“Canada’s competitiveness is a critical asset for our operations across the country. A highly skilled and diverse talent pool, as well as a stable regulatory process promoting innovation are fundamental for our company.”
Andrew Mutch, President, Michelin Canada
More reasons to invest in Canada
Let’s work together
At Invest in Canada, we are dedicated to your company’s success. Our team is your trusted guide to investing in Canada. We get to know your business, offer insights and information and connect you with the right people and places to support your decision.