Educated workforce: highest educational attainment in the OECD

You'll find the talent you need in Ontario, home to one of the world's most highly educated, skilled and reliable workforces.

An educated and talented workforce for your business success

The most important ingredient for success? Talented people. And in Ontario you'll find one of the best educated talent pools in the world, where 67% of adults have completed post-secondary education, more than in any other OECD country.

Post-secondary Educational Attainment (%)
Select Markets, 2014 (Age 25-64)
Select markets Post-secondary educational attainment (%)
Ontario 67
Canada 65
Ireland 55
Japan 48
United States 44
United Kingdom 42
Germany 38
France 32
Mexico 19
Note: Not all jurisdictions count apprenticeship as post-secondary education.
Source: Statistics Canada and OECD, 2015

Diverse and multicultural

Our richly multicultural society, comprised of people from all over the world, can help you build and maintain ties to global markets.

  • Whatever your nationality, culture, religion or background, your family, colleagues and employees will feel welcome in Ontario.
  • Nearly half of the 250,000 people who immigrate to Canada each year choose to live in Ontario.
  • Over 200 languages are spoken in Ontario.
  • Still, 93% of persons for whom a foreign language is their mother tongue also speak one of our two national languages, English or French.

Our colleges and universities

Ontario's 44 colleges and universities and over 400 registered, private career colleges ensure that graduates have the skills and knowledge to not only perform, but excel in your business.

 

We make it easy to relocate

More immigrants relocate to Ontario each year than to any other province in Canada. Whether you're Ontario-based or a multinational corporation looking to call Ontario home to an operations facility, our business immigration consultants can give you guidance and advice on recruiting foreign workers or transferring key personnel to Ontario.

Competitive business costs: the lowest in the G7

You'll save more money here, money you can use for further investments in operations, innovation and growth.

 

The lowest overall business costs in the G7

In Ontario, you'll benefit from highly competitive business costs that can boost your company's growth and profitability.

Overall business costs index (U.S.=100)
Location Costs index
Ontario 85.6
Italy 89.3
France 90.5
United Kingdom 90.9
Germany 92.3
Japan 92.7
United States 100.0
Source: MEDEI/MRI analysis, prepared using CompetitiveAlternatives.com Cost Model, 2016 Edition.

Competitive corporate tax rates

With a total combined provincial and federal (15%) corporate income tax rate of 26.5%, Ontario's combined general federal-provincial CIT rate is lower than the average of G20 countries and lower than the average federal-state CIT rate in the United States.


Combined Federal-Ontario general corporate income tax (CIT) rate
Regions Percent
Ontario 26.5
G20 Avg 28.2
G7 Avg 30.5
U.S. Avg 39.0
Source: Ontario Ministry of Finance, 2016 Budget.

Marginal Effective Tax Rate (METR) on New Business
Country Percentage
US Average 34.7
OECD Average 20.2
Ontario 16.3
Source: Ontario Ministry of Finance, 2016 Budget.

Combined Federal and State/Provincial Corporate Income Tax Rate in Manufacturing (Per Cent)
Country Percentage
Ontario 25.0
New York 29.3
Texas 31.4
Ohio 31.9
Florida 34.2
Georgia 34.5
Great Lakes States Avg. 34.7
Michigan 34.9
Indiana 35.2
Illinois 35.6
Wisconsin 36.2
Kentucky 36.4
New Jersey 36.4
California 36.8
Source: KPMG Competitive Alternatives, 2016

Lower health care costs

All citizens and permanent residents in Ontario can access universal health care services under the Ontario Health Insurance Plan, which covers the full cost of doctor examinations, medical testing, emergency care and hospital care.

On average, Ontario employers enjoy health costs half that of their counterparts in the United States.

Employer health costs for a typical firm
Country Thousands US$
U.S. 980
Ontario 457
Note: Typical firm defined as having approximately 91 employees.
Source: MMK Consulting, 2014

 

Environment of innovation: generous incentives for R&D

Your breakthrough concepts and technologies can come to life in Ontario. We’ve built one of the most supportive environments for R&D and dynamic ecosystems for innovation on the planet.


Fast facts

  • Almost half of Canada’s full-time R&D personnel are in Ontario, where more than $14 billion is spent annually on R&D.
  • Five of the top ten corporate R&D spenders in Canada have made Ontario their headquarters location.
  • Ontario is an internationally recognized technology hub, with over 1,000 tech companies generating $30 billion revenue in the Waterloo area alone.

The ingredients you need for research and innovation

From game-changing startups you haven't heard of yet to multinational leaders like GlaxoSmithKline, Google, Pfizer, IBM, Siemens and Microsoft, in Ontario, you'll find the ingredients you need to conduct research and develop new products and services.

Here, companies are engaged in manufacturing process improvements, developing state-of-the-art technologies and software, clinical trials and more.

Ontario's R&D cost advantage versus other G7 countries (KPMG, 2016)
Location Cost advantage/disadvantage relative to the US (%)
Ontario 27.8
France 22.4
Italy 21.0
Germany 16.0
Japan 12.8
United Kingdom 11.9
United States Baseline
Source: MEDEI/MRI analysis, prepared using CompetitiveAlternatives.com Cost Model, 2016 version.

Generous R&D tax incentives

Combined with federal R&D programs, Ontario's R&D tax incentive program can reduce your after-tax cost of every $100 in R&D spending to between $37 and $61.

  • Our R&D tax incentive program is available to qualified businesses of any size and applies to a range of eligible costs that is broader than in the U.S. and many other countries.
  • There is no cap on the program and tax credits can be carried back for three years or forward for 20 years.
  • Ontario’s focus on low development costs and simplified tax programs contribute to a combined federal-provincial corporate income tax rate substantially lower than in the United States.

Select the best description of your operation to see possible after-tax savings you could achieve in on your R&D expenditures in Ontario.

Public, private or foreign-owned

  R&D expenditures R&D expenditures at eligible institutitions1
Gross expenditure $100.00 $100.00
Ontario – 20% OBRI2 Tax Credit   -$20.00
Ontario – 4.5% ORDTC3 -$4.50 -$3.60
Federal investment tax credit – 20% -$14.33 -$11.46
Tax deduction4:
(Combined federal of 15% and
provincial of 10% = 25%)
-$20.29 -$16.24
After-tax cost of $100 expenditure $60.88 $48.71

NOTES:
  1. Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
  2. The 20% refundable Ontario Business-Research Institute Tax Credit.
  3. The 4.5% Ontario Research and Development Tax Credit.
  4. Tax rates for large manufacturers: Federal 15.0% plus Ontario 10.0% = 25.0%

Public, private or foreign-owned

  R&D expenditures R&D expenditures at eligible institutions2
Gross expenditure $100.00 $100.00
Ontario – 20% OBRI3 Tax Credit   -$20.00
Ontario – 10% OITC4 -$10.00 -$10.00
Ontario – 4.5% ORDTC5 -$4.05 -$3.15
Federal investment tax credit – 15% -$12.89 -$10.03
Tax deduction6:
(Combined federal of 15% and
provincial of 10% = 25%)
-$18.26 -$14.21
After-tax cost of $100 expenditure $54.79 $42.62

NOTES:
  1. Medium-sized companies have taxable income of less than $500,000 and taxable capital of less than $50 million.
  2. Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
  3. The 20% refundable Ontario Business-Research Institute Tax Credit.
  4. The 10% refundable Ontario Innovation Tax Credit.
  5. The 4.5% Ontario Research and Development Tax Credit.
  6. Tax rates for manufacturers: Federal 15.0% plus Ontario 10.0% = 25.0%

Public, private or foreign-owned

  R&D expenditures R&D expenditures at eligible institutions1
Gross expenditure $100.00 $100.00
Ontario – 20% OBRI2 Tax Credit   -$20.00
Ontario – 4.5% ORDTC3 -$4.50 -$3.60
Federal investment tax credit – 15% -$14.33 -$11.46
Tax deduction4:
(Combined federal of 15% and
provincial of 11.5% = 26.5%)
-$21.51 -$17.21
After-tax cost of $100 expenditure $59.66 $47.73

NOTES:
  1. Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
  2. The 20% refundable Ontario Business-Research Institute Tax Credit.
  3. The 4.5% Ontario Research and Development Tax Credit
  4. Tax rates for large manufacturers: Federal 15.0% plus Ontario 11.5% = Total 26.5%

Public, private or foreign-owned

  R&D expenditures R&D expenditures at eligible institutions2
Gross expenditure $100.00 $100.00
Ontario – 20% OBRI3 Tax Credit   -$20.00
Ontario – 10% OITC4 -$10.00 -$10.00
Ontario – 4.5% ORDTC5 -$4.05 -$3.15
Federal investment tax credit – 15% -$12.89 -$10.03
Tax deduction6:
(Combined federal of 15% and
provincial of 11.5% = 26.5%)
-$19.36 -$15.06
After-tax cost of $100 expenditure $53.70 $41.76

NOTES:
  1. Medium-sized companies have taxable income of less than $500,000 and taxable capital of less than $50 million.
  2. Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
  3. The 20% refundable Ontario Business-Research Institute Tax Credit.
  4. The 10% refundable Ontario Innovation Tax Credit.
  5. The 4.5% Ontario Research and Development Tax Credit.
  6. Tax rates for manufacturers: Federal 15.0% plus Ontario 11.5% = Total 26.5%
  R&D expenditures R&D expenditures at eligible institutions2
Gross expenditure $100.00 $100.00
Ontario – 20% OBRI3 Tax Credit   -$10.00
Ontario – 10% OITC4 -$10.00 -$10.00
Ontario – 4.5% ORDTC5 -$4.05 -$3.15
Federal investment tax credit – 35% -$30.08 -$23.40
Tax deduction6:
(Combined federal of 11% and
provincial of 4.5% = 15.5%)
-$8.06 -$6.73
After-tax cost of $100 expenditure $47.21 $36.72

NOTES:
  1. Small CCPCs have taxable income of less than $500,000 and taxable capital of less than $15 million.
  2. Eligible Ontario research institutes include universities, colleges of applied arts and technology, research hospitals and other entities in Ontario.
  3. The 20% refundable Ontario Business-Research Institute Tax Credit.
  4. The 10% refundable Ontario Innovation Tax Credit.
  5. The 4.5% Ontario Research and Development Tax Credit.
  6. Tax rates for small CCPCs on the first $500,000 of taxable income: Federal 11% plus Ontario 4.5% = 15.5%

Table Data Source: Ontario Ministry of Finance, January 2014

* The information provided here presents a potential after-tax cost based on assumptions regarding R&D expenditures, tax incentives and tax rates that may not apply to your business. This information does not constitute tax advice. Please consult your tax advisor to determine the after-tax cost of R&D expenditures for your business.


Government-supported R&D centres located throughout Ontario

 

Access to market: part of the $20-trillion NAFTA market

Locating in Ontario makes it easier to reach broader North American and global business networks. Our location and extensive transportation infrastructure translate directly to expanded market access.

Expanded commercial and market opportunities

Your business will be located in the North American Free Trade Agreement (NAFTA) region, the largest free trade region in the world.

  • You’ll have expanded access to a thriving combined market of 470 million people, producing over $20 trillion in goods and services annually.
  • NAFTA facilitates two-way goods trade valued at $929 million between Ontario and the United States each day.

Road, rail, air and water transportation

Ontario's transportation system includes highways, internationally connected railways with advanced traffic management systems, worldwide cargo aviation systems and extensive inland and international marine shipping facilities

  • Our extensive road infrastructure can make it easy for you to transport your goods over land. We have over 250,000 kilometres of municipal roads, provincial highways, and resource and recreational roads.
  • Our rail networks help ensure just-in-time deliveries of your goods.
  • Ontario has five international airports, including Canada's largest airport, Toronto's Lester B. Pearson International Airport.
  • Goods flow smoothly in and out of Ontario, thanks to marine lines that offer shipping options to ports throughout the Great Lakes and around the world. Ontario ports are served directly by the Great Lakes/St. Lawrence Seaway System (also known as Hwy H2O) a 3,700-kilometre (2,300-mile) marine highway that runs between Canada and the United States.

 

Quality of life; top ranked on global indices

More than a great place to start and grow a business, Ontario is a wonderful place to live. Here you'll find diverse, safe, affordable and welcoming communities, and a wealth of cultural and recreational activities.

 

Safe and welcoming

  • 40% of Canada's population lives here, where newcomers feel an immediate sense of belonging.
  • Ontario is also one of the safest regions in which to live and do business. Violent crime rates in major Ontario cities are far below their counterparts in the United States.
Mercer 2016 Quality of Living Survey Index, Top Cities in North America
Rank City Country
5 Vancouver Canada
15 Toronto Canada
17 Ottawa Canada
23 Montreal Canada
28 San Francisco United States
32 Calgary Canada
34 Boston United States
35 Honolulu United States
43 Chicago United States
44 New York City United States
46 Seattle United States
Source: Mercer - Quality of Living, 2016

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