Canadian taxes on the business

The corporate taxes are the income tax which is levied by the federal government of Canada on the corporate. These taxes are applicable under all the private corporations in Canada which comes under Canadian Controlled Private Corporations.

Types of corporate taxes:

1. For private corporate who have small business the taxation rate is 11 percent. An example of the same can be the estate planning expert.
2. For all the other kinds of corporations in Canada the corporate rates are fixed at 15 percent. The corporate tax for the big corporate of Canada was 18 percent in 2010 which was decreased to 16.5 percent in 2011 and 15 percent in 2012.

In order to take care of the corporate taxes the Canadian taxable revenue agency is responsible which includes the different tax rates which are to be charged by the provinces and the territories.

In Canada there are two main types of corporations, one of which is the Canadian Controlled Private Corporations and there are other corporations.

When it comes to the corporate taxes the Canadian controlled corporations have a better hand while the other corporations do not have.

One of the greatest advantages of the Canadian controlled corporations includes the eligibility to get the permission for the small business deduction. The tax deduction is thus calculated as eleven percent on the least business income of the corporate in a taxable year.

Another advantage of having the Canadian controlled corporations involves:

1. It involves an additional month where the taxes can be paid by the corporation.
2. It involves an enhanced investment to pay the tax credits for the expenditures which are qualified and the experimental development and the research conducted t the scientific level.
3. It ensures the capital gain exemption to the share holders for the deposition of the corporate business shares at the small level.
4. It also involves the deferral of the taxable benefits of the employees for exercising the options which are related to the stocks as per the grants given by the CCTC.

Reduction on the Canadian corporate tax:

1. There are two ways to reduce the amount of Canadian tax that the people of Canada have to pay. It is also notable fact that they do prescribe the things that they earn from the tax credits and tax the advantages of the other tax deductions.

The first method is the corporate tax credits. The tax credits include the federal investment credits which can be read in detail in the investment tax credits for Canadian small business. The best tax credit involves the scientific research.

The second method is the income tax deductions which are available to the Canadian controlled private corporate. The business tax deductions are available in the list provided in my business Expenses from the Accounting to the travel expenses.

The corporate income tax is thus needed to be paid by the people within the 6 months of the fiscal year. It is designed in order to benefit the corporate which are provided assistance from the revenues generated from the corporate tax.

About Author:-

Ken Donaldson is a estate planning 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 corporate tax. For more information visit taxca.com.

Ken Donaldson is a chartered accountant who practices as an independent tax consultant. He also author of international tax, in this article he provides t