If your company is a Canadian taxpayer, Canadian corporate tax is calculated by allocating taxable income between the provinces in which your company has a permanent establishment presence.
The company is considered to have a permanent establishment presence in any Canadian province where any of the following conditions are met:
- A fixed place of business such as an office, branch, warehouse, workshop or factory in the province.
- An agent or an employee present in the province.
- The company owns land in the province.
- There is substantial use of machinery or equipment by the company in the province.