Tax policies on formation of new company

Question

1049 viewsMay 17, 2023Accounting

0

Vinesh Kumar (anonymous) Posted May 13, 2023

Hello my name is Vinesh Kumar and i have two questions.
1) What is tax% on resident and non resident in Canada if they form a new company?
2) What if one resident and non resident form a new company in partnership what will be the tax% on that.
I hope you answer that soon. Thankyou.

1 Answer

score 0 · Answer 1 · 2023-05-17T14:23:27+00:00

Hi Vinesh,

The corporate tax rates on active business income are as follows:

1.12% – if the corporation is not controlled by non-residents of Canada. To meet this requirement, at least 50% of the corporation’s voting shares should be owned by residents of Canada. Note that the 12% rate applies to net active business income up to $500,000, and thereafter the rate is increased to 26%.

2.26% – if the corporation is controlled by non-residents of Canada.

Tax policies on formation of new company

1 Answer

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