The Benefits of Paying Wages

By |2021-10-24T09:53:15+00:00February 1st, 2020|Taxes|

An important part of tax planning is determining if you will pay yourself wages out of your company. There are a number of benefits to paying wages, including increasing deductions in your company, contributing to your retirement, and receiving additional tax credits. Here's a breakdown of the advantages that come with paying yourself wages. Reduce Corporate Taxes  When you pay yourself wages out of your company, you can claim a deduction against your company's income.  For example, if you have $95,000 net profit in your company, and you decide to pay yourself $25,000 in wages, your company's income is reduced to [...]

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Why Do I Have to Pay Instalments and What Happens if I Don’t?

By |2021-10-24T09:53:15+00:00December 18th, 2019|Business, Taxes|

The requirement for corporations to pay corporate tax instalments is the same as when individual taxpayers have income tax deducted from their paycheque every payday. Just like tax payments sent in on behalf of taxpayers by their employers act like a credit against the amount of tax owing at the end of the year, instalments made by corporations reduce their tax bill when they file their tax return.  What are instalments? Instalments are tax payments you pay before filing your tax return. Even if your company doesn’t meet the requirement to pay instalments, you can do so voluntarily to avoid a [...]

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When do non-resident businesses have to file tax returns in Canada?

By |2021-10-24T09:53:16+00:00May 14th, 2018|Accounting|

We get a lot of calls from non-resident businesses that sell in Canada and are wondering what their tax considerations are. If you sell products / services in Canada and are over certain thresholds you will be required to charge sales tax (GST/HST which is the federal tax and there are also provincial sales taxes in certain provinces).  If you are looking for more information on sales tax and the thresholds check out this previous post: Canada Sales Tax Sheet. The next question is what about tax on the income? The question is actually harder to answer than you may imagine. [...]

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