Tax Services, Corporate, Personal Tax in Toronto

To understand corporate tax in Canada, one must understand what corporate tax is and how corporate tax accountant Toronto can help you. Unfortunately, most companies just dive into taxes without making heads or tails of how the taxation system works. At RC Financial Group, we are corporate tax accountant Toronto, and we are here to put you through.

First of all, let us put you through the definition of a tax. Tax is an obligatory levy imposed by the government on the masses. There are different kinds of taxes, and to make sure you hold your position as a citizen in high esteem, you have to familiarise yourself with these taxes and sort them out when necessary. An important tact to understand is corporate tax.

Corporate tax is the levy imposed on corporations and organizations. When a company earns profits, a part of that profit is owed to the government. The rates of this type of tax vary from country to country. For this reason, some companies choose to pay these taxes in countries where the rates of these are low. These countries are known as tax havens.

corporate tax accountant toronto

Types of Corporate Tax

There are certain types of corporate tax, which include:

  • Federal income tax
  • Provincial and territorial income tax

Federal income taxes have a basic rate of 38% and usually are at about 28% after federal tax abatement. This abatement is to typically give space for the provinces to impose CITs. For CCPs (Canadian Controlled private corporations), the rates are at 10%. Provincial and territorial income taxes are typical of two rates; a higher and lower one. The lower one is for manufacturing and processing income, which is considered eligible for the federal small business deduction. Each province and territories have their own rates set. The higher ones apply to all other types of income.

In Canada, the type of corporation determines the tax rate that would be adhered to. There are three types of corporations, including:

  • Canadian Controlled private corporations

These are private corporations. Certain requirements are legislated for a company to become a CCP corporation. Companies that are CCPs have to be resident in Canada, started in the country, or inhabited in the country from the 18th of June, 1971, to the end of the tax year. Companies like this are not allowed to be owned or controlled by non-residents of the country. If non-residents own shares in the company, they would not be allowed to own enough to control the company. They are also not allowed to be controlled by corporations regarded as public. An exception to this case is a venture capital corporation that has been defined according to some legislation in the Income Tax Regulations

  • Private corporations

These are similar to Canadian Controlled private corporations, but not quite. Corporations are only regarded as private corporations if they meet a certain set of requirements at the end of the tax year. They have to be residents in Canada, for one. Public corporations are not allowed to hold the title of private corporations either. Private corporations are only so because they are also not controlled by public corporations.

  • Public corporations

There is one unshakeable requirement for a corporate to be called a public one: It must be resident in Canada. The other requirements are flexible, and it only has to tick one box before it can be designated as a public corporation at the end of the tax year. It must either have an aspect of shares listed on a Canadian stock exchange, or it must have, on its own or through the Minister of national revenue, been designated the title of the public corporation. It must also have adhered to legislation about its number of  shareholders, the way the shares are distributed amongst shareholders, and how big the organization is from Regulation 4800(1) of Income Tax Regulations.

corporate tax accountant

There are also other intricacies involved in paying corporate tax in Canada. First, you have to know the tax rates and what they are. There are federal tax rates, provincial or territorial tax rates, and that is why you should have corporate tax filing services on hand. A corporate tax accountant Toronto would do well to keep your taxes in order. Taxes are very important to the growth and stability of an organization, and a disorderly tax calculation can be detrimental to your business. We offer corporate tax accounting in Toronto to help you do this.

Why would a corporate tax accountant Toronto help your business?

These special accountants help take on the monumental task of filing your organization’s taxes. They scrutinize all tax documents to ensure that they are accurate and that all tax laws have been adhered to. They also serve as consultants of sorts. They can offer advice to companies on how to optimize their profit and tax returns. corporate tax accountant Toronto are proficient in bookkeeping and accounting, have good mathematical and organizational skills, and have extensive knowledge of the tax laws around the area. It can go a long way in preventing your company from passing through litigation from government attorneys.

Here at RC financial group, we have a team of competent accountants that can help you with these services. We deal with corporate tax accountant Toronto. We deal closely with organizations of all sizes, helping to work on their income tax statements, and offering effective schemes and blueprints for the companies to follow that would benefit them in the long run.

Our organization is dedicated to making sure that your organization’s taxes are done. It requires a sort of mental stamina, endurance, and dedication that only accountants possess. We can help your business with taxing issues, teach and ensure your organization operates within the boundaries of tax legislation, and make sure all documents are up-to-date, accurate, and complete. We can also offer advice on how to make your business optimize taxation dealings. We only seek to serve you and your organization’s tax needs. Contact us, and we can, together, work to make sure your taxation worries are sorted out quickly, easily, seamlessly, and optimally.

Leave a Reply