Small companies in Canada can take advantage of a variety of tax deductions that may be used to reduce their tax burden and increase their company earnings.
Deductions can be a huge help in lowering your tax rate and taking advantage of them fully, so knowing what they are is important. Here are some of the most common tax deductions list by Tax Accountant Toronto team that small company owners in Canada may take:
Tax Accountant Toronto team explains that hiring your relatives for your company allows you to benefit from income splitting. Family members who work for you must be performing real work that is supported by documentation and paperwork.
In general, the advantages of employing family members outweigh any bookkeeping concerns, such as recording their wages as a business expense and splitting your net income with them, which may put you into a lower tax bracket.
A number of tax incentives have been made available by the Canadian government to help certain industries. Investment Tax Credits (ITCs) may be claimed by your small company, depending on the following:
Tax Accountant Toronto experts recommend to file your taxes on time to avoid stress, hassle, fines, and the CRA. Your income tax is due by April 30th for small enterprises, and any amount owing must be paid before June 15th.
Maintain Complete and Accurate Records:
Tax Accountant Toronto team state that keeping records and receipts is required whether you’re successful or not, since taxes must be completed. These documents assist you in proving that your deductions are correct.