Accounting 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:
- The Income Tax Law which is the main act governing taxation at federal and regional levels;
- The Tax Rebate Discounting Law which provides for the refund of taxes paid in Canada;
- The Income Tax Conventions Interpretations Law which provides for the tax agreements signed by Canada;
- 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 CanadaThe following tax rates apply at a federal level in Canada:
|Value Added Tax||5%|
|Property tax||Depends on the value of the property|
Accounting services available in Canada
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.