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Dividends or Salary

By |2023-04-24T22:21:43+00:00August 24th, 2023|Business, Taxes|

Small business owners need to understand how paying themselves with dividends and salary can impact their earning potential. In Canada, these are common payment methods with different tax implications. This post explores the differences, including taxation rates and personal retirement accounts (RRSP and CPP program), to help you make an informed decision. Gain a clear understanding of dividends vs salary and make a plan that maximizes your earnings. Overview of Dividends and Salaries Dividends and salaries are two important components of compensation for owners of a small business corporation in Canada. Dividends are payments made to shareholders as a share of [...]

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Maximize Your Tax Savings: Understanding Immediate Expensing for Canadian Businesses 

By |2023-05-10T05:10:49+00:00May 18th, 2023|Taxes|

Immediate Expensing for Canadian Businesses Are you a Canadian business owner looking to save on taxes? You might have heard of immediate expensing, a tax deduction method that allows businesses to deduct the full cost of eligible assets in the year of purchase, rather than depreciating them over several years. This tax deduction method can provide a significant tax benefit for businesses, especially since it allows for a 100% deduction in the year of purchase. In this blog post, we'll provide an overview of immediate expensing in Canada, the eligible and excluded assets, and the gradual phase-out of this tax deduction.  [...]

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Share Options for Canadian Contractors

By |2023-05-10T05:14:08+00:00May 8th, 2023|Accounting, Taxes|

Welcome to our accounting firm’s blog, where we will be discussing the tax implications of issuing share options for Canadian contractors. What Are Share Options Share options, also known as stock options, are a form of compensation that allows employees or contractors to purchase shares in the company at a predetermined price at some point in the future. While these options can be an attractive form of compensation for employees and contractors, there are very important differences to the tax treatment and implications if you are a contractor and not an employee of the corporation. If you are considering accepting share [...]

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Considerations when Incorporating a Small Business

By |2023-02-13T16:13:40+00:00May 4th, 2023|Taxes|

As a business owner, incorporating a small business is an important step in growing your business. Incorporating your business provides several benefits, including limited liability protection, tax advantages, and the ability to raise capital more easily. The decision to incorporate is a tough one and you can read more about the decision to incorporate here. Here is another article where we reviewed the business types (sole proprietor, partnership, and corporation). Once you have made the decision to incorporate there are many other considerations you will have to make. In this blog, we’ll discuss what you need to consider when incorporating your [...]

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Does my not-for-profit have to file a Corporate Tax Return?

By |2023-06-06T18:15:52+00:00April 20th, 2023|Not for profit, Taxes|

As an accounting firm, we often encounter not-for-profit organizations that are unsure if they need to file a corporate tax return in Canada. As a result, we thought it was important to provide some information on this topic to help clear up any confusion. Are you an incorporated not-for-profit in Canada? Firstly, if you're a Canadian incorporated not-for-profit, you're classified as a corporation. Canadian tax law views you this way. Hence, you must file a corporate tax return or T2. This is true regardless of income generation. Maintaining tax-exempt status requires filing a return, even with no taxable income. The general [...]

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How can I save money on taxes as a small business owner?

By |2023-02-13T15:26:50+00:00April 6th, 2023|Taxes|

As a small business owner in Canada, tax planning is an essential part of your financial strategy. By taking the time to plan ahead, and understand the available tax savings, you can help ensure that you are maximizing your profits and keeping more of your hard-earned money. Here are a few important tips to keep in mind when planning in order to save money on taxes. The Small Business Deduction As a small business owner of an incorporated Canadian Privately Held Corporation, you may be eligible for the small business deduction. This allows you to pay a lower corporate tax rate [...]

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Are you getting all your tax credits as a brewery in BC?

By |2023-04-03T13:56:16+00:00March 23rd, 2023|Taxes|

Our firm serves a variety of industries. However, one of our concentrations of clients is in craft breweries. In helping craft breweries with their tax and accounting needs we were speaking with some tax specialists these past few weeks. We became aware that many craft breweries may be missing a tax credit that they are entitled to. We wanted to write a blog to ensure we spread the word about this missing tax credit which relates to the markup they pay to the BC  Liquor Distribution Branch (BCLDB). This example is specific to craft breweries in British Columbia. However, if you [...]

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Should I Charge GST/HST on My Remote Work?

By |2022-11-17T04:41:56+00:00November 17th, 2022|Accounting, Taxes|

We work with a lot of consultants, and we find this question coming up a lot: “Do I need to charge GST/HST on the services I perform for clients in another country?” Usually, they are referring to clients in the US. The simple answer is no! Place of Supply In Canada, the Canada Revenue Agency (CRA) deems the place of supply for services to be the location where your client is based. This holds true even if you perform the work remotely from your office in Canada. However, there are some exemptions to the place of supply rules. Whether the exceptions [...]

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Alberta’s Interactive Digital Media Tax Credit

By |2022-10-27T19:03:38+00:00October 27th, 2022|Taxes, Technology|

The Alberta Interactive Digital Media Tax Credit (IDMTC) is for eligible registered IDM corporations that develop interactive digital media credit products in Alberta after April 1, 2018. The credit is calculated at 25% of eligible salary and wages incurred in the tax year and is FULLY refundable. That means you are required to first apply it to income taxes payable but if you clear that balance you will still get the amount of the credit as a refund! Eligible corporations that hire under-represented populations may qualify for an additional 5% through the Diversity and Inclusion program component. Here is an example, [...]

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BC’s Interactive Digital Media Tax Credit

By |2022-10-27T18:39:16+00:00October 27th, 2022|Taxes, Technology|

The Interactive Digital Media Tax Credit (IDTMC) is for eligible registered corporations that develop interactive digital media credit products in B.C. after August 31, 2010, and before September 1, 2023 (CURRENT deadline). The credit is calculated at 17.5% of eligible salary and wages incurred in the tax year and is FULLY refundable. That means you are required to first apply it to income taxes payable but if you clear that balance you will still get the amount of the credit as a refund! Here is an example, if you have $200,000 in eligible salaries and wages, you may be entitled to [...]

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