Israel vs Canada
Corporate Tax Comparison
Time of Update: Israel: 4/04/2026 / Canada: 4/04/2026
Compare Israel and Canada corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Israel vs Canada Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Israel
Canada
General CIT Rate:
23
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Withholding Tax (WHT)
Israel
Canada
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Israel
Canada
General Capital Gain Tax Rate:
Capital gains are constrained by 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)
Israel
Canada
Composite Effective Average Tax Rate:
21.47%
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
16.63%
Composite Effective Marginal Tax Rate:
13.74
