CORPORATE TAX FAQS

WHAT IS THE CORPORATE TAX RATE?

The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement. After the general tax reduction, the net tax rate is 15%. For Canadian-controlled private corporations claiming the small business deduction, the combined net tax rate is 9%, effective January 1, 2019

HOW SHOULD I PREPARE FOR TAX SEASON?

Realistically, tax preparation should be taking place year-round so that you can enjoy a stress-free tax season. Tax preparation starts with a good filing system. Create one for your business records that works for you. Keep clear records of anything your business may be eligible for as a deduction and any expenses that are important to note. Knowing what you’ll need a year in advance can be a little difficult, so we recommend speaking with an accountant.

HOW SHOULD I FILE MY TAXES?

Income tax season can seem like a nightmare for some businesses, but it doesn’t have to. With proper tax preparation throughout the year, knowing when and what your business needs to file, and with a little help from an accountant, filing your taxes can be simple. Ready to make tax season easy? Get in touch today.

HOW DO I CALCULATE CAPITAL COST ALLOWANCE?

Capital cost allowance (CCA) allows Canadian businesses to claim depreciation expenses for capital assets under the Income Tax Act. How much CCA you can claim each year depends on when you acquired the property and the CCA class to which it belongs. The CRA has assigned classes to particular types of depreciable property, and there are assigned rates for each class.

CAN I FILE MY OWN CORPORATE TAXES IN ONTARIO?

All resident corporations must file a T2 return for every tax year, even if no tax is payable. This includes non-profit organizations, tax-exempt corporations, and inactive corporations. A.M.I. CPA Professional Corporation can take the headache out of filing your corporate income tax return by either letting us act as your corporate tax accountant or by providing corporate tax services to ensure you file a corporate income tax return that triggers the least amount of corporate tax payable.

A.M.I. CPA Professional Corporation can discuss with you more details on your corporate taxes.