All you need to know about business tax return
If you are a business owner in Canada, you have to pay different taxes and fees periodically. Hence, before starting a business, you must acquire knowledge of various tax-related rules and regulations. You can approach various corporate tax consultants in Toronto to gather essential information. But, this article will give you a basic idea that how you can handle your corporate tax obligations.
Some basic corporate tax rates
If you have a small business and it lies under the jurisdiction of any of the Canadian-controlled-private-corporations, you have to bear the net tax rate of 10%. If your business lies under the jurisdiction of any other type of corporation in Canada, you have to bear the corporate tax rate of 15%. An amount with this rate will be deducted after the general tax reduction. If there is no such reduction, the basic rate of Part I tax will be 38%.
How you should prepare to file your corporate income tax returns?
Use the General Index of Financial Information or GIFI to fill up a T2 Corporate Income Tax form. As it is not an easy task, you can take the help of an expert Canadian Tax Consulting Service. If any accountant personally handles your case, always keep necessary documents with you so that he or she can check essential details.
When you have to file your corporate income tax?
You need to file your corporate income tax within the last six months of a running fiscal year. You need to contact your corporation and have to follow a certain procedure to change your fiscal year-end. You have to pay penalties following some declared rates, if you file your corporate income tax after the payment period.
How you have to file your corporate tax?
You can file your corporate tax electronically using the internet. Almost all Canadian corporations including non-resident corporations and corporations claiming an SR&ED amount offer this facility.
Visit the Corporation Internet Filing page of the Canada Revenue Agency to know the facilities offered by your corporation and how to utilize them.
