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