Corporations have to pay income tax in monthly or quarterly installments unless the total of Part I, Part VI, Part VI.1, and Part XIII.1 taxes payable for either the previous year or the current year is $3,000 or less. The balance of tax the corporation owes for a tax year is due within either two […]
Archive | Canada Taxes
RSS feed for this sectionCanada Tax Return for Non-resident corporations
A non-resident corporation has to file a T2 return if, at any time in the year, one of the following situations applies: it carried on business in Canada it had a taxable capital gain it disposed of taxable Canadian property unless the disposition meets all the criteria listed below in the section “Dispositions of taxable […]
Limited partner status under the Income Tax Act
The treatment of a particular partner under the Act can vary depending on whether the partner is considered to be a “limited partner” as defined in the Act. Among other things, if a partner is a limited partner, specific at-risk rules apply to restrict the partner’s ability to deduct partnership losses For purposes of the […]
Ontario Municipal Taxation
Municipal taxation in Ontario generally takes the form of real property taxation. Ontario municipalities do not impose sales taxes or income taxes. real property taxes are not imposed by the federal government. Municipalities levy and collect property taxes based on assessed values determined by the Municipal Property Assessment Corporation. Municipalities may also levy development charges […]
Ontario Sales Taxes
All Canadian provinces have some form of general or limited sales tax, such as sales taxes, use taxes, value-added taxes, or specific sectoral taxes on fuel, tobacco, or hotel and accommodation taxes. Prior to the implementation of the HST, the Ontario retail sales tax (“RST”) formerly applied at a rate of 8% to most sales, […]
Canada GST/HST for property and services made in Canada
The Gst/HST applies only to supplies of property and services “made” in Canada. supplies of property and services that are made outside Canada are beyond the scope of the Gst/ HST. special deeming rules are contained in the legislation for purposes of determining when a supply is made inside or outside of Canada. Furthermore, certain […]
Canada GST/HST registration requirements
As a general rule, all persons engaged in a “commercial activity” in Canada must register to collect the Gst/HST within 30 days of first making a taxable supply in Canada. Generally, non-residents are required to register only if they carry on business in Canada and make taxable supplies in Canada. it should be noted, however, […]
Canada Harmonized Sales Tax
Canada imposes a value-added tax known as the Goods and services tax (“GST”) on the supply of most property and services in Canada. Gst applies at a rate of 5% in all Canadian provinces and territories except for five provinces that have harmonized their provincial retail sales tax (Pst) with the Gst. Ontario is one […]
