Toronto, Ontario, Canada lies on the shore of Lake Ontario, the easternmost of the Great Lakes. Home to more than 2.7 million people, the city is the key to one of North America's most vibrant regions, the Greater Toronto Area (GTA). 5.2 million Canadians live in the GTA, the cultural, entertainment, and financial capital of the nation. The city is also the seat of government of the province of Ontario.
That is why Toronto abounds in investment and employment opportunities in such diverse fields as banking and financial services, film and television production, and fashion, and also boasts a thriving arts community.
A closer look at Toronto's location
Strong Supply of Utilities at competitive Cost
| Water |
From $4.25 Cdn. per thousand US gallons. |
| Natural Gas |
From $0.120 to $0.67 per cubic meter depending on amount used and time of usage. |
| Electricity |
Toronto Hydro has significant unused capacity and is adjusting industrial rates to attempt to sell this. The current rate structure has been frozen through the year 2000 and ranges from guaranteed rates of $5.48 per KWH to as low as $0.027 per KWH for surplus power. |
Sales Tax
| Federal GST: |
5% |
| Province: |
8% |
| Local: |
None |
Final domestic consumers bear the full impact of GST. Goods destined for export do not attract GST.
Investment Incentives: The World's Best!
The attractiveness of Canada's R&D tax system is very high, surpassing the R&D tax treatment of the United States, Japan and Western Europe. With the addition of significant Ontario R&D tax incentives, Toronto's combined corporate income tax system is now unequalled in its treatment of R&D.
Canadian tax incentives consist of a 100% deduction of both current and capital expenditures for R&D (net of the Investment Tax Credit - ITC) and a 20% ITC on those expenditures. The deduction credit reduces income subject to tax in Canada. The tax credit reduces federal tax payable. Unused tax deductions can be carried forward, and used ITCs can be carried back 3 years and forward 10 years against tax payable in those years.
Ontario's R&D tax incentives parallel the federal incentive system. Qualifying R&D activities and eligible costs are based on federal legislation. Ontario provides a special additional deduction in computing Ontario taxable income. This "superallowance" varies from 25% to 52.5% depending on the type of corporation. This deduction is allowed in addition to the 100% write-off of R&D expenditures which is claimed for both federal and Ontario purposes.
In the Middle of the Great North Eastern Cities
Toronto is ideally located for operations with a world-wide focus. The city is 1.5 hours by air to cities such as New York, Philadelphia, Hartford, Boston, and Chicago, with direct flights available to most major world cities. The city is located in the Eastern Time Zone which allows for convenient communications with key people in the eastern seaboard of North America, while providing excellent windows of communication to European centres. The multi-cultural nature of the city (over 100 ethnic groups) provides international companies a large pool of the language skills necessary to operate in international markets.
Canadians depend on trade to a larger extent than most major world economies; exports of goods and services account for approximately 25% of the GDP. With more than 150 trading partners, the economy of Ontario is also largely based on international trade. Over 91% of Ontario exports went to the United States in 1994 while over 76% of Ontario's imports came from south of the border.
In selecting an operating site, it is very advantageous if a corporate executive can travel to and from his operating centre in one working day, or, for that matter in one half day. Lost productivity due to "jet lag" would not be an issue for employees travelling between headquarters and an operation in Toronto.
A Leading International Airport Becoming Even Better
The fourth largest international airport in North America and the world's largest originator of traffic into the United States, Lester B. Pearson International Airport delivers safe, efficient and quality service to millions of passengers every year.
Serving as Canada's gateway to the world, its three terminals are the departure points for more than 61 domestic, U.S. and international airlines travelling to 300 destinations in 54 countries.
Pearson is Canada's busiest airport, offering extensive service to major American destinations such as New York (160 flights per week), Chicago (130 flights per week), Washington (85 flights per week), and Los Angeles (21 flights per week). As such, it has become the pinnacle choice for cross-border travel.
Pearson Airport is undergoing a 10-year $4.4 billion redevelopment program in order to meet the growing demands of air travellers. The primary objective is to create a facility that will better accommodate passengers, shippers and the airlines. The project has three major components, Terminal Development of terminals 1 and 2; Airside Development including the construction of two new runways; and Infield Cargo Development enabling the area to handle up to 900,000 tonnes of cargo. Toronto Pearson International Airport
