Accounting in Canada

Updated on Monday 27th August 2018

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Moving or starting a company in Canada is simple from certain points of view, such as the legal requirements. However, when considering the accounting matters, one must pay attention to two main aspects: the federal and the regional or territorial regulations. For foreign investors, especially, accounting is a sensitive matter when they must choose to start a business in Canada.

For this purpose, there are many companies and consultants offering accounting services in Canada. You can rely on our local agents for accounting and company formation services in Canada.
 

A brief overview of the Canadian taxation system

In order to know what are the accounting services one needs, it is best to find out some information on the taxation system in Canada. As mentioned earlier, taxation in Canada is imposed at a federal or provincial level, it all depends on where one resides or how a company is registered.

There are four main taxes imposed in Canada:
 

  •           the income tax which levied on the income earned by individuals residing in Canada;
  •           the corporate tax which is applied to the income generated by companies in Canada;
  •           the sales tax which is also known as the Harmonized Sales Tax or Value Added Tax;
  •           the property tax which is applied to the income derived from owning residential property.


All taxes are collected by the Canadian Revenue Agency. The federal taxes applied on income are levied at various rates based on certain thresholds of income; the taxes applied to companies in Canada are also levied at different rates.

Our company registration agents in Canada can offer information on the taxation system applicable in this country. We also remind you that you can rely on us for accounting services.
 

The main tax laws in Canada

Both foreign and local entrepreneurs and individuals residing in Canada must abide by the following laws related to taxation:
 

  1.        The Income Tax Law which is the main act governing taxation at federal and regional levels;
  2.        The Tax Rebate Discounting Law which provides for the refund of taxes paid in Canada;
  3.        The Income Tax Conventions Interpretations Law which provides for the tax agreements signed by Canada;
  4.        The Income Tax folios which is a set of regulations establishing the taxation of special categories of taxpayers.


We have also created a video with the accounting services provided in Canada:
 

Federal tax rates in Canada

The following tax rates apply at a federal level in Canada:
 
 Tax  Rate
 Income tax   15%-33%
 Corporate tax  11%-34.67%
 Value Added Tax  5%
 Property tax  Depends on the value of the property
 

Accounting services available in Canada

 
Canadian companies and residents can request various accounting services based on their needs; however, it is more common among businesses to ask for such services.
The following accounting services can be provided by our consultants in Canada:
 
  •           assistance in opening the corporate bank account when opening a company in Canada;
  •           drafting the monthly, quarterly and annual financial statements;
  •            filing financial accounts with the Canadian Revenue Agency;
  •           audit services;
  •           payroll services.

We also offer tailored accounting services depending on the clients’ requests. Among these, we remind of the virtual office packages available for foreign enterprisers.

For full information on the accounting and company formation packages we can provide in Canada, do not hesitate to contact us.

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