Get the most out of Taxes
Posted: Oct 31, 2013
The Canadian government levies taxes on Canadian citizens who are earning by making a business there or making a living by some source of income made out of an employment in the country. Every country charges these taxes on its citizens and the whole amount that is collected by the government in invested only in the welfare and development of their people in many aspects of life like construction of roads, expenditures on security and defense and much more. Canadian tax system also is like any other country’s tax system with few differences; these are to abide by countries specific laws and regulations.
The Canadian taxes for residents and non residents differ. If a nonresident that is a Canadian citizen do not stay in Canada but runs his business, offers services or sells products is liable to pay taxes to the Canadian government as he is drawing the revenue from the country therefore he’s also has to pay the taxes. All these regulations are cited by the Canadian revenue agency in the nonresident taxation policies. Nonresident tax system is a bit intricate in Canada and full of a plethora of different tax rules and regulation based on different business, work and services. A tax expert can help you understand the terms and their differences if you’re finding it hard to understand them. Some nonresidents are given relaxation from paying any taxes but it purely depends on the tax treaties between the two countries; Canada and the country in which the nonresident Canadian is residing.
Other than income tax, there are other taxes like home tax, office tax which are to be paid to the government based on the land your home and office is occupying that is abided by the set of rules fixed by the government. However, there are ways to save on these taxes; your tax expert can guide you through, if you can claim your office taxes in your home taxes. There are many ways to save taxes on so many things; all you will require is to be aware of them and your tax counselor can assist you learn them. What would be better than employing your spouse and your own children in your business as in this case Canadian progressive tax system benefit you with a tax credit! So start finding out a tax expert fast, if you don’t have one, to dig out all the files of your business and check where you can save on huge taxes you pay every month or year.
For those who are going to decrease the value of their assets, it is important to know that only if they do it by the end the year, it will cause them least loses in terms of tax payments. If you decline the value of your assets in the beginning or the middle of a year, you might have to take care of the taxes which you would pay for whole year. So, If things are going a little complicated or its getting tougher to manage your finance with taxes, the best recommendation is to hire a tax expert.
Ken Donaldson is a canadian tax expert, who practices as an independent tax consultant. He is providing lots of information about how to manage canadian income tax. In this article you can find details information about nonresident tax. For more information visit taxca.com.