Canada Offers Tax Breaks to Lure Foreign Investors Amid Trade War

Canada has introduced a new tax incentive to attract foreign investment, particularly in key sectors such as mining, energy, technology, and infrastructure. The move is part of Prime Minister Mark Carney's effort to strengthen the economy and draw more foreign investment amid a trade war with the United States.

The new policy allows businesses to immediately write off the cost of most new capital investments for tax purposes, reducing Canada's marginal effective tax rate on new business investment from 13% to 6.4%. This is lower than any major economy in the world and less than half the rate in the United States.

Carney has pledged to attract C$1 trillion (RM2.9 trillion) in investments over the next five years by cutting red tape and developing projects. He also plans to cut the review period for major projects, aiming to make Canada a more attractive destination for investors.