Germany vs Canada
Corporate Tax Comparison
Time of Update: Germany: 4/02/2026 / Canada: 4/04/2026
Compare Germany and Canada corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Germany vs Canada Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Germany
Canada
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Withholding Tax (WHT)
Germany
Canada
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Germany
Canada
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate 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)
Germany
Canada
Composite Effective Average Tax Rate:
26.59
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
11.00
Composite Effective Marginal Tax Rate:
13.74
