What are the different taxes in Canada?
Taxes are the integral part of any nation over which the economic system stands firm. Canada is also not an exception. With an array of taxes, the country has its own functioning for each one of them.
Canadian taxation is a prerogative that is shared between federal government and various provincial as well as territorial legislatures. This is something special about the country. Thus, the tax consultation service in Toronto is also quite different. We at The Accounting and Tax provide consultants regarding every taxation issue. Here follows the different categories of taxes in Canada.
The primary taxes in Canada are basically two types namely Goods and Service Tax and Provincial Sales Tax. GST in Canada is designed after European VAT. On the other hand, each province in Canada can have separate PST.
Income tax
Like any other country, income tax is an inseparable section of Canada. Canadian income tax is a progressive tax which means that those who earn higher incomes have to pay higher tax rates. This system is strictly followed in the country. Income tax being the ‘spinal cord’ of the taxation system, Canada is strict regarding this.
Corporate tax
This is a very important tax in Canada and here registered corporations in Canada are required to pay tax on their earnings. Canadian tax consulting service is very much involved in resolving problems regarding this. Our team at The Accounting and Tax has also gained reputation in dealing with corporate taxes in many business organizations.
Excise tax
This is completely commodity based. The Canadian excise taxes are basically imposed on goods related to automobiles and fuel consumption. They are actually included within the prices of the goods and naturally people do not see the excise tax they are paying for every good they are buying.
In Canada, the federal, provincial and municipal governments collect money from the people and companies to pay for government programs and services like the roads, public utilities, schools, health care, economic development and cultural activities. This is the basic taxation system in Canada. The above mentioned taxes are the types that can’t be escaped in any way.
