Branch profits tax
1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
Income Tax Law, 2/e$75.00 – $120.00
The branch profits tax is a tax that may be imposed by the source state on that portion of the business profits of a foreign corporation that is attributable to a permanent establishment therein. The rate of the branch profits tax is determined by the Income Tax Act (Part XIV), but is often reduced in Canada’s bilateral tax treaties.