Canada has dropped two spots on an international tax competitiveness index, in part due to Ottawa’s raising of the capital gains inclusion rate this year, according to the ranking report.
Canada fell from 15th place in 2023 to 17th this year out of the 38 Organisation for Economic Co-operation and Development (OECD) countries analyzed, says the report from the International Tax Foundation. The foundation analyzes changes in the tax systems of each country it ranks and then grades each one according to its competitiveness and neutrality.
The foundation said Canada’s digital services tax and its capital gains tax hike, enacted this year, contributed to the lower ranking. Canada’s gradual phase out of full expensing for machinery and its accelerated investment incentive for buildings also played a role in its rating, the foundation said….