Japan vs Canada
Corporate Tax Comparison
Time of Update: Japan: 4/03/2026 / Canada: 4/04/2026
Compare Japan and Canada corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Japan vs Canada Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Japan
Canada
General CIT Rate:
23.2
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
Within two months after the end of the company's fiscal year.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
Within two months after the end of the company's fiscal year.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
Within two months after the end of the sixth month of the company's accounting period.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Withholding Tax (WHT)
Japan
Canada
Resident Withholding Tax (Dividend/Interest/Royalty):
20/20/0
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Japan
Canada
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate.
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.
Effective Tax Rate (ETR)
Japan
Canada
Composite Effective Average Tax Rate:
28.36
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
29.26
Composite Effective Marginal Tax Rate:
13.74
