Taxation
Personal Taxes
Canada levies personal income tax on the worldwide income of individuals resident in Canada and on certain types of Canadian-source income earned by non-resident individuals.
After the calendar year, Canadian residents file a T1 Tax and Benefit Return for individuals.
It is due April 30, or June 15 for self-employed individuals and their spouses, or common-law partners. It is important to note, however, that any balance owing is due on or before April 30. Outstanding balances remitted after April 30 may be subject to interest charges, regardless of whether the taxpayer’s filing due date is April 30 or June 15.
We provide T1 (Personal tax) filing services throughout the year. Our team pays attention to the facts and situation of each individual and accordingly file taxes on your behalf .
Corporate taxes
All incorporated businesses in Canada are liable for corporate taxes (T2 Returns).
Unincorporated businesses are not required to file T2 returns. These include sole proprietorships and businesses run by individuals as partnerships. Owners of unincorporated businesses are, however, subject to personal income tax on an individual basis.
Filing of Corporation tax Returns
Generally, every corporation carrying on business in Canada must file a Corporation Income Tax Return (T2 return) with the Canada Revenue Agency (CRA) no later than 6 months after the end of the tax year.
You may be required to make installment payments, which are partial payments of the total amount of tax payable for the year. The balance of tax, which is the tax payable for the tax year after you have deducted the installments already made for the year, is paid on your balance due date, which is 3 months after the end of the tax year for a Canadian controlled private corporation (CCPC) or 2 months after the end of the tax year for a non Canadian controlled private corporation.
WOULD YOU LIKE TO TALK ABOUT TAXATION?
Call us at 365-357-3651 or email us at admin@prismaccounting.ca