New StatCan data shows enterprise profits rising modestly while corporate taxes jump nearly 20%
Canadian businesses posted modest profit growth in 2024, the latest year of data released by Statistics Canada.
Profits gained even as the amount paid in corporate income taxes climbed sharply with enterprises across the country recording $620.3 billion in net income before taxes (NIBT) in 2024, an increase of $17.5 billion, or 2.9%, from the previous year.
Ontario led the gains, with corporate profits in the province rising by $14.9 billion, or 6.1%, the largest increase among provinces and territories. Overall, profit growth was recorded in six of the 13 provinces and territories.
The rise in profits was largely driven by micro-enterprises, whose combined pre-tax income jumped $24.4 billion, or 15.2% during the year. That increase was partly offset by declining profits among medium-sized businesses, where net income before taxes dropped $5.4 billion, or 6.9%.
Industry performance varied widely. The miscellaneous intermediation sector, which includes firms primarily involved in buying and selling financial contracts, delivered the largest boost to overall profits. Net income before taxes in the sector rose $11.8 billion, or 19%, largely due to stronger equity markets and gains tied to fair-value adjustments.
The real estate industry also recorded strong growth, with profits increasing $7.1 billion, or 19%, as rental prices climbed. Statistics Canada noted that rents rose 8.1% between 2023 and 2024, contributing to improved margins for smaller firms in the sector. Micro-enterprises in real estate reported a median pre-tax profit margin of 12.2%, up from 11.5% a year earlier.
Not all sectors performed as well. Net income before taxes in the transportation, postal and courier services industry fell $9.5 billion, reflecting weaker profitability across the sector. Small enterprises accounted for $4.4 billion of the decline, with their median pre-tax profit margin slipping to 3.9% in 2024, down 1.1 percentage points from the previous year.
While profits rose moderately, corporate income taxes payable increased significantly. Canadian enterprises owed $155.9 billion in corporate income taxes in 2024, up $25.4 billion, or 19.5%, compared with 2023.
Of the total, $93.4 billion was owed to the federal government, while $62.5 billion went to provincial governments. Non-financial industries accounted for the majority of tax obligations, representing 75.7% of total taxes payable among incorporated businesses.
Corporations also benefited from a range of tax relief measures. Businesses received $134.1 billion in tax credits, including $55.9 billion in federal tax abatement and $19.4 billion through the small business deduction.
The figures come from Statistics Canada’s Annual Financial and Taxation Statistics for Enterprises survey, which tracks the financial performance of corporations across the country, excluding government business enterprises.
Statistics Canada noted that beginning with the 2025 reference year, the analysis will shift from net income before taxes to operating profits, a change intended to better reflect profits generated from core business activities.
