Doing business with Canada Opportunities for Italian companies Presented by: Sandra Marchesi Embassy of Canada
AGENDA AGENDA 1. Canada s entrepreneurial climate 2. Canada-Italy Trade & Investment 3. Opportunities in Canada 2
Canada is acclaimed for its superior business climate Open for business: Canada understands the importance of its business community. Canada is the best place for doing business among the G-7 over the next five years. Canada is the easiest place to start a business in the G7. Business Environment of the G-7 Countries, Rank for Forecast Period 2015-2019 1st Rank 2nd 3rd 4th 5th 6th 7th Canada U.S. Germany U.K. France Japan Italy Source: The Economist Intelligence Unit, August 2015
Canada Offers an Overall Tax Advantage for Firms to Expand.. As a result of corporate income tax reductions introduced by the Government since 2006, Canada has the second lowest statutory corporate tax rate in the G-7 as of 2015. In addition, Canada s overall tax rate* on new business investment is substantially lower than all G-7 countries. International Comparison of Statutory General Corporate Tax Rates in 2015 Marginal EffectiveTax Rate* on New Business Investment, 2015 % 45 40 35 30 25 20 15 39.0 34.3 32.1 30.2 27.5 26.3 20.0 % 40 35 30 25 20 15 37.3 34.7 Impact of federal and provincial actions since Budget 2006. 31.2 33.0 28.6 26.5 20.2 19.0 17.5 10 U.S. France Japan Germany Italy Canada U.K. 10 Japan U.S. France U.K. Germany OECD Average** Italy Canada *The tax rate on new business investment is the marginal effective tax rate (METR) that takes into account federal, provincial and territorial statutory corporate income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs. **OECD average excludes Canada. Source: Finance Canada, April 2015 4
COMPETITIVE ADVANTAGES Canada is a solid venue for innovation Canada benefits by having one of the best R&D tax treatments in the G-7. Canada currently offers one of the most favourable tax treatments for R&D among the G-7. Canada provides a system of tax credits and accelerated tax deductions for a wide-variety of R&D expenditures. Eligible costs include: salaries, overhead, capital equipment, and materials. These tax-based treatments permit firms to significantly reduce R&D costs through direct investment or sub-contracting in Canada.
COMPETITIVE ADVANTAGES Canada s tax credits for R&D activities Table 2: Combined Federal and Provincial/Territorial SR&ED tax credits Foreign-controlled corporations and other corporations not eligible for small CCPC status Provinces Provincial credit Federal credit Combined credit rate (1)1 Rate Refund? Rate Refund? Alberta 10% Yes 15% No 23.5% British Columbia 10% No 15% No 23.5% Manitoba 20% Yes (2) 15% No 32% New Brunswick 15% Yes 15% No 27.75% Newfoundland 15% Yes 15% No 27.75% Nova Scotia 15% Yes 15% No 27.75% Ontario (3) 4.5% No 15% No 18.825% Prince Edward - - 15% No 15% Island Quebec (4) 17.5 Yes 15% No 29.875% % Saskatchewan 15% Yes 15% No 27.75% Nunavut - - 15% No 15% NWT - - 15% No 15% Yukon (5) 15% Yes 15% No 27.75%
FOREIGN TRADE ZONES Customs Bonded Warehouse http://www.cbsaasfc.gc.ca/import/ddr-red/tab8-eng.html Duties Relief http://www.cbsaasfc.gc.ca/publications/dm-md/d7/d7-4-1-eng.html Duty Drawback http://www.cbsaasfc.gc.ca/publications/dm-md/d7/d7-4-2-eng.html Export Distribution Centre http://www.craarc.gc.ca/e/pub/gm/b-088/b-088-e.html Exporters of Processing Services http://www.cbsaasfc.gc.ca/import/ddr-red/tab7-eng.html
CANADA & EU Canada-EU Trade Agreement BENEFITS FOR INVESTORS: INVESTMENT Canada investment in EU = $180 billion (28% total CDIA) EU investment in Canada = $171 billion (24% total FDI) Investment review threshold will be C$1.5 billion Greater certainty, stability, protection
CANADA & ITALY Selected Italian Investments in Canada
CANADA & ITALY Selected Canadian Investments in Italy
OPPORTUNITIES IN CANADA MAJOR PROJECTS IN CANADA Responsible Resource Development Gateway projects Plan Nord Alberta Oil Sands New Building Canada Fund Defence Procurement
RESPONSIBLE RESOURCE DEVELOPMENT RRD = JOBS, GROWTH, PROSPERITY Ensures timely, efficient and effective project reviews while strengthening Canada s world class environmental standards Over the next 10 years, more than 600 new projects representing over $650 billion in natural resources. Projects Map: www.actionplan.gc.ca
GATEWAY PROJECTS CANADA'S STRATEGIC GATEWAYS AND TRADE CORRIDORS Asia-Pacific Gateway and Corridor: Shortest travel distance between North America and Asia Atlantic Gateway and Trade Corridor: Provides competitive and strategic supply-chain solutions Shortest travel distance between North America and Europe and between North America and India Network of transportation infrastructure in BC Lower Mainland and Prince Rupert Ports Continental Gateway: multimodal transportation system (Quebec and Ontario) Seamless integration with Atlantic & Pacific Gateways
PLAN NORD THE PROJECT OF A GENERATION An approach centred on innovative partnerships between Quebec Government and private entities Investimenti di oltre 50 miliardi di dollari A sustainable development project that integrates energy, mining, forest, biofood, tourism and transportation development along with the protection on wildlife, the environment and biodiversity. Plan Nord will create 20,000 jobs
CANADA S OILSANDS CAPTURING OPPORTUNITIES IN ALBERTA Canada is the world s 6 th largest crude oil producer (~3 million barrels/day) Alberta has the world s 3 rd largest oil reserves Government of Alberta 20 year strategic plan $2 trillion estimated investments, reinvestments and revenues from new oil sands projects by 2035.
DEFENSE PROCUREMENT STRATEGY Multi-billion procurement strategy for Canada s forces Opportunity to partner with Canadian companies to supply components for: Fixed wing search & rescue Armoured vehicles Ships and vessels
NEW BUILDING CANADA PLAN The largest and longest federal infrastructure plan in Canada's history Can$80 billion for public infrastructure over the next decade, including Can$53-billion for provincial, territorial and municipal infrastructure. Focus on supporting projects that enhance economic growth, job creation and productivity.
EMBASSY OF CANADA HOW WE CAN HELP 90 Employees 2 offices in Rome Honorary Consulates located in Milan, Udine, Malta, Albania Embassy s main sections: Commercial, Political, Public Affairs, Immigration, Consular The embassy covers the countries of Albania, Malta, and San Marino. Commercial Division: 10 team members including: 2 located in Milan 1 Investment Specialist 1 Innovation Specialist Sector officers in priority sectors (A&D, Agrifood, Automotive, ICT, Life Sciences, Sustainable Technology)
BUSINESS VISITORS Doing business in Canada Canada welcomes business immigrants: Investors Entrepreneurs Self-employed persons Business Visitors: Italians do not need a visa to visit Canada Examples: buyers, sellers, training, after-sales, after-lease services As of March 15, 2016, Italians will need an Electronic Travel Authorization (eta). Work Permits: Labour Market Impact Assessment Needed Application for Work Permit required Intra-company Transfers to Canada (ICT) Covered under CETA Hiring a Temporary Foreign Worker LMIA may be required Work permit required and may vary Apply in advance www.cic.gc.ca
CONTACT US Embassy of Canada Via Salaria, 243 00199 Rome Tel: 06-85444.3352 / 3363 Email: rome.td@international.gc.ca For more information, visit our websites: www.tradecommissioner.gc.ca/it www.investincanada.gc.ca www.italy.gc.ca