Capital Tax

Capital tax is what it sounds like: a tax on a company’s capital.

But...what is capital?

Capital can include stock, surplus in the bank, and debt. Capital tax is tax applied to capital, not money already spent (so it’s not like an “income tax” for a company...more like an asset tax).

Also, unlike income tax, capital tax is charged no matter what. It’s just part of the price of doing business (in Canada).