Toronto – Canada’s business and financial capital.
Toronto has everything needed to start or scale-up a global financial operation … plus a little bit extra.
Canadian business powerhouse.
Toronto is the fifth largest city in North America and an economic powerhouse in Canada, generating $157 billion in 2013 or 10 per cent of Canada’s GDP.
One-quarter of Canada’s population lives within 160 km (100 miles) of Toronto and more than 60 per cent of the U.S. population is within a 90-minute flight.
The financial industry is a key driver of Toronto’s and Canada’s economy. It generates $13 billion in fiscal benefits for the Canadian, Ontario and City of Toronto Government. It also supports directly and indirectly more than 420,000 jobs across Canada. This is an exceptional workforce that is among the best educated in the world.
Toronto – A business environment for market leaders.
Toronto lies at the heart of a vibrant technology and manufacturing corridor that runs through southern Ontario from Ottawa to Windsor. In addition to the financial services sector, the region is home to Canada’s information technology industry, life sciences sector, automotive industry and many of the country’s leading academic institutions and research centres.
The Toronto region is where you will find North America’s largest combined life science and biomedical/biotechnology cluster. Companies include the Canadian head offices for global pharmaceutical companies including GlaxoSmithKline, Sanofi and Roche, as well as world-leading research centres such as the Ontario Institute for Cancer Research and the Toronto Hospital for Sick Children.
Toronto’s cost advantage.
Annual operating costs for international financial services companies are significantly lower in Toronto than in many leading centres, according to KPMG’s Competitive Alternatives 2016 (competitivealternatives.com).
Among 51 cities with a metropolitan population of at least two million people, Toronto ranked fourth lowest and first among the major financial centres in terms of typical business costs (labour, facilities, utilities, taxes, etc.) for financial services operations.
A number of factors contribute to this advantage. Employee healthcare costs for a typical firm here are about one-third the U.S. average. Corporate income tax rates (federal and provincial combined) are lower than in most U.S. states.
According to KPMG’s Special Report: Focus on Tax (2016), Toronto has the lowest total tax cost among the major international cities. The total tax impact for an international financial services or shared services operation located in Toronto is less than half the tax burden of New York city.
Competitive Business Costs Financial Services OperationsOverall Business Costs Index (U.S. average = 100)
|Benchmark U.S. average||100.0|
Source: KPMG Competitive Alternatives 2016
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