Why Invest in Canada
- Author Jennifer Nobles
- Published December 4, 2010
- Word count 417
Canada is a fantastic choice for foreign investors. A country with a Triple-A credit rating by Standard & Poor’s as well as Moody’s, Canada provides the opportunity to invest confidently in a country with inbound FDI totaling $446 billion (2006) and a #1 ranking among G7 economies for GDP growth over 1997-2006.
A financial advisor can help you take advantage of Canada’s investment benefits which include the following:
(1)Stability
Canada shares the longest peaceful border the world (with the US) and its government has a long tradition of peaceful democratic rule. A solid legal system based upon that of Great Britain has maintained uninterrupted rule of law for centuries.
(2)Strong fiscal policies and currency
The Canadian dollar has remained strong and stable in the past, providing minimal foreign currency risk and relatively low interest rates. The Canadian dollar has in fact gained ground as the Canadian economy has weathered the recession better than any other G7 country.
(3)Sound banking
For the second year in a row, the World Economic Forum’s Global Competitiveness Report has found that Canada has the soundest banking system in the world. Canada's well-regulated financial institutions, banks, trust companies, cooperatives, insurance companies and stock exchanges have demonstrated the stability and competitiveness that has made their services popular around the world. The financial sector has become one of Canada's major export earners since the worldwide liberalization of financial regulations. Canada’s other financial institutions are equally impressive, offering investment opportunities that are both lucrative and safe.
(4)Favorable taxation
The Canadian tax structure only requires withholding tax on interest and dividend income and not on capital gains. Canada offers businesses low tax rates, boasting the lowest payroll taxes among the G7 countries. By 2012 Canada's corporate income tax rate will fall from 18 percent in 2010 to 15 percent in 2012 - less than half of the U.S. rate. Canada's combined federal and provincial-territorial statutory corporate tax rate declined from 31.3% in 2009 to 30.8% in 2010. It is on track to drop to 27.2% by 2012. By 2012, Canada will also have a statutory corporate tax rate advantage over the United States of almost 12 percentage points.
(5)Efficient market environment
Canadian equities trade on the TSX and TSX Venture Exchange. The TSX offers investors more oil and gas issuers, equity financing, and mining companies than any other exchange in the world.
(6)Educated workforce
Ranked #1 by the Organization for Economic Cooperation and Development in higher education achievement — More than half of Canadians between the ages of 25 to 35 have a post-secondary education, either at university, college or technical school.
Her investment advice has expanded over several industries in various global markets (Guaranteed Investment Certificate). Because of her detailed analysis (high interest savings account) and profound passion for business, she is regarded as one of the top financial advisor for worldwide investments and enterprise affairs.
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