Financial and taxation statistics for enterprises, 2017
Corporate operating profits in Canada increased 17.1% from 2016 to $439.5 billion in 2017.
Operating profits in the non-financial sector rose 20.9% in 2017 to $288.2 billion, while the finance and insurance sector recorded operating profits of $151.3 billion, up 10.5% from the previous year.
Overall, the net profit of corporations was up 26.0% from 2016 to $390.1 billion in 2017. Taxable income rose 7.5% to $330.5 billion, after adjusting for prior year tax losses and timing as well as other differences. Total corporate taxes payable increased 8.9% to $83.9 billion.
Operating profits continue to rise in 2017
Canada's non-financial sector recorded operating profits of $288.2 billion in 2017, up $49.8 billion (+20.9%) from the previous year, following an increase of $9.2 billion from 2015 to 2016. Operating revenues were up 6.2%, while operating expenses increased 5.2%.
The oil and gas extraction and support activities industry reported an operating profit of $1.5 billion in 2017, up $15.6 billion from the previous year. This is in sharp contrast with the operating loss of $14.1 billion recorded in 2016. The operating profit for petroleum and coal products manufacturing also increased, up $5.0 billion to $5.5 billion in 2017. Operating profits in both industries reflected higher oil prices in 2017. The Organization of the Petroleum Exporting Countries agreed to cut production at the beginning of the year to drain global supply and support higher prices.
Manufacturing operating profits increase in 2017
Operating profits in manufacturing increased 20.0% from the previous year to $56.4 billion in 2017. Petroleum and coal products manufacturing accounted for the largest share of the gain, up $5.0 billion.
Excluding petroleum and coal products manufacturing, annual operating profits increased $4.4 billion. Primary metal manufacturing, up $2.0 billion as a result of higher commodity prices, and wood and paper manufacturing, up $1.7 billion as lumber prices rose, both contributed to this growth.
Retail and wholesale operating profits are up in 2017
In the retail sector, operating profits grew 14.3% to $27.9 billion in 2017. Clothing, department and other general merchandise stores led the growth, up 28.9% or $1.4 billion from the previous year. Profits also increased for other retailers, up 13.1% or $817 million.
In the wholesale sector, operating profits rose 16.8% to $30.7 billion. Other merchant wholesalers led this growth, up 18.2% to $10.2 billion. Profits for machinery, equipment and supplies merchant wholesalers rose 18.3% to $7.1 billion.
Increase in financial sector profits
Operating profits in the finance and insurance industries increased $14.4 billion to $151.3 billion in 2017. Operating profits for depository credit intermediation, which includes banks, grew $7.4 billion (+16.3%) as a result of higher interest revenue.
Corporate income taxes in 2017
Canadian enterprises recorded $83.9 billion in corporate taxes payable in 2017, up $6.8 billion from 2016.
Of the overall corporate tax payables, $50.7 billion were to the federal government, while $33.2 billion were to provincial governments.
Non-financial industries accounted for about three-quarters (73.4%) of taxes payable by incorporated businesses.
Corporations received $75.6 billion in tax credits in 2017, up from $70.2 billion the previous year. These tax credits included $30.7 billion in federal tax abatement, as well as $13.9 billion from the small business deduction.
Note to readers
These financial and taxation statistics cover all incorporated enterprises within the domestic economy, including government business enterprises. They exclude enterprises classified as management of companies and enterprises, funds and other financial vehicles, and the public administration.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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