These treaties provide for favourable treatment of computing taxable business profits. Specifically, income like dividends, interest, royalty and fees for technical services are taxed at lower rates than those applicable under the domestic law. Excise duty is payable on manufactured products. The duty rate is commodity dependent and varies from year to year. The rates are ad valorem, specific or a combination of both.
Sales tax is imposed on sales of goods.
The incidence of tax is primarily on the seller who may or may not shift the burden on the purchaser. Each province has its own sales tax administration and the tax charged is commodity dependent and varies from year to year. Under certain conditions a Central Sales tax is also levied. Certain documents like bills of exchange, insurance policy, etc. also attract stamp tax.