Category: Business & Corporate Tax

What is the GST/HST Quick Method and who can use it?

The GST/HST Quick Method is a simplified type of accounting available to small businesses for calculating their net sales tax for GST/HST purposes. The major benefit of choosing this method is reduced paperwork and easier calculation. This option is available for small businesses with annual revenue of less than $400,000 (restrictions may apply). How it … Continue reading What is the GST/HST Quick Method and who can use it?

When is the deadline for remitting HST collected and filing the HST return to the CRA for a sole proprietorship?

If you have a corporation that has an annual reporting period, you would have to remit any amount owing no later than three months after the year end which is also your filing deadline.  An exception applies for individuals – sole proprietors. If you have a December 31st fiscal year-end, your payment is due April … Continue reading When is the deadline for remitting HST collected and filing the HST return to the CRA for a sole proprietorship?

I am a non-resident contractor providing services in Canada. My client is withholding 15% of my fee as withholding tax. How can I recover them?

If you believe that your actual tax liability will be less than 15% due to a tax treaty between your country and Canada or for other reasons, you may apply for the Regulation 105 Waiver in order to have the withholding tax reduced to a lower amount or even to zero. The CRA generally recommends … Continue reading I am a non-resident contractor providing services in Canada. My client is withholding 15% of my fee as withholding tax. How can I recover them?

I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

Each province in Canada has their own residency requirements for directors of a corporation. If you don’t meet these requirements in a particular province of Canada, you cannot incorporate in that province. Note that a corporation requires a minimum of one (1) director. The list below outlines each province’s requirements for directors: Ontario: Majority of … Continue reading I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

What are the tax implications for a Canadian business that earns income in the U.S.?

As a Canadian business that is deriving income from sales that occurred in the US you will be required by the IRS to report this income on one of the following tax returns, depending on your organizational structure: • 1040-NR  • Form 1120-F• Form1065 The IRS has the right to levy income tax on business income … Continue reading What are the tax implications for a Canadian business that earns income in the U.S.?

What are the benefits/disadvantages of structuring a farm business as a sole proprietorship or a corporation? How is HST dealt with for the sale of the business?

Corporation vs. Sole Proprietorship Choose corporation because: ability to control timing and amount of taxable income by being able to choose dividends/salary whenever there is a personal need. As a sole proprietorship, everything earned through the business would be taxed at the personal rate. lower corporate tax rate of about 15% federal and provincial combined (if you become a … Continue reading What are the benefits/disadvantages of structuring a farm business as a sole proprietorship or a corporation? How is HST dealt with for the sale of the business?

How do I know if I have to charge GST/HST to my clients?

Generally, GST/HST registrants must collect GST/HST from customers for goods sold or services provided in Canada. However, GST/HST does not apply to items that are zero-rated supplies or exempt supplies. Read more on how to determine if the goods & services you are providing are GST/HST exempted.

How do I make income tax payments to the CRA for my business?

If you have to make an installment payments or pay the remaining balance of your Corporation’s income tax, you can do so as follows: Option 1 – Electronically The following banks will accept corporate income tax payments electronically: Scotiabank RBC Royal Bank TD Canada Trust If you have an account with any of the above … Continue reading How do I make income tax payments to the CRA for my business?

I need a medicine professional corporation setup, what should I be aware of?

A professional corporation (PC) is not like a standard corporation. A PC’s business activities are limited to that of the profession, e.g. practice of medicine. The most common professions authorized to register professional corporations’ are accountants, lawyers, dentists and doctors. A medicine professional corporation must be in compliance with the College of Physicians’ and Surgeons’ … Continue reading I need a medicine professional corporation setup, what should I be aware of?

How can I split my company’s business profits with my children?

Question:

What tax deductions can Americans working for a Canadian company in Canada claim?

Question: I’m an American considering work for a Canadian company in Canada. I understand taxes will be payable to Canada, both Federal and State. My residence and family will stay in the US. Can I deduct from gross income the following: Rent Food

My corporation is inactive and I would like to dissolve it, what should I be aware of?

Take the following steps to dissolve your inactive corporation: Before you can dissolve your corporation you have to make sure any outstanding tax liabilities such as HST (sales tax), corporate income taxes and payroll taxes are all paid to the CRA as of the dissolution date. The related tax returns must also have been filed … Continue reading My corporation is inactive and I would like to dissolve it, what should I be aware of?

Do I have to issue myself a T5 Slip if I took dividends from my company?

Question:

If an employer is provided with travel allowance, is it a taxable benefit to an employee?

Question: I have employees that are driving frequently due to the nature of their work. If I provide them with a car allowance, is it a taxable benefit to them? Answer: As a corporation, you can pay them a flat allowance, but then it would be part of their regular payroll. The employee would then … Continue reading If an employer is provided with travel allowance, is it a taxable benefit to an employee?

Do I have to include a taxable benefit in my income for a company provided car?

Question: My corporation owns a vehicle and its available for me to use. Are there any tax implications? Answer: When a corporation owns a vehicle and provides it to an employee’s for usage, the personal KM’s driven are considered a taxable benefit. Therefore, when you file the employee’s T4 slip a standby charge and operating … Continue reading Do I have to include a taxable benefit in my income for a company provided car?
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