FINANCE

OVERVIEW CANADIAN TAX SYSTEM

TAX LAWS is set by federal and provincial government.

CANADIAN REVENUE AUTHORITY(CRA) collects personal income tax except for Quebec. They also collect company income tax except for Quebec and Alberta. Taxes collected are remitted to the relevant authority.

CANADIAN TAX SYSTEM USES SELF-ASSESSMENT SYSTEM

A.PERSONAL INCOME TAXES- EMPLOYMENT AND PROFIT FROM BUSINESS

B.CORPORATE TAXES

C.CAPITAL GAIN TAXES(50% OF GAIN / 50% OF LOSS RELIEVED.

D.GST/HST/PST

E.HEALTH SERVICE TAX-some provinces charge it

F. EMPLOYEES AND EMPLOYERS contributions to social employment insurance

G.NATURAL RESOURCES TAXES

INCOME NOT TAXABLE

  1. TAX CREDIT- CHILD ASSIST PMYT/CHILD CREDIT/GST/HST)

EXEMPTION FOR CAPITAL GAIN TAX

1.PRINCIPAL RESIDENCE

2.PROPERTY LESS THAN $1000

3.LIFETIME CAPITAL GAIN EXEMPTION

EXPENSES EXEMPTED

A. EXPENSES AS SPECIFIED BY LAW

B.CAPITAL ALLOWANCE AS SPECIFIED BY LAW.

1.PERSONAL INCOME TAX– The federal and provinces charge personal income taxes

A.Federal tax rate for 2022

15% on the 1st $50197 +

20.5% on the next $50197 +

26% on the next $ 55,233 +

29% on the next % 66,083 +

33% on incomer over 221,708

PERSONAL INCOME TAX RELIEVE

A. Relieve-Family/child care/care giver/education/disability/pension and savings plans

2.CORPORATE TAX

This has provincial and territorial lower and higher tax rates and business units.

Lower rate– income that qualifies for the federal small business deduction.

Higher rate – for Income not qualify for federal and small business deduction.

SEE MORE A. INTERNATIONAL TAX SYSTEM B.TAX SOFTWARE

C.BUSINESS AND INFORMATION TECHNOLOGY BOOKS

D.ACCOUNTING TEMPLATE- SOFTWARE

Disclaimer: Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice. 

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