Starting and Doing a Business in Canada: Taxes and Accounting

In terms of favorableness of the business environment, Canada is among the top countries with the best business climate. Such a status is ensured by the government’s protectionist policy, especially concerning small-medium enterprises. For those who would like to start a business in Canada, there are enormous perspectives along with the factors that potentially ensure the success of an enterprise. The country is a federation, and its provinces have peculiarities related to doing business and taxation; however, the tax companies in Canada that offer outsourced accounting services will easily provide support for businesses of all sizes.

Canada’s Advantages for an Entrepreneur

  • Numerous state programs to support entrepreneurs and investors;
  • Economic stability;
  • High level of technological development;
  • Highly-developed infrastructure;
  • A stable and elaborate legal system;
  • Very low corruption level, virtual lack of bureaucracy;
  • High workforce qualification and education level.

Business Taxes

The main fiscal charge on businesses in Canada is the income tax. In this case, the object of the tax is all income received within the country or abroad. Its main feature is a regressive character that encourages business growth. The considerable base rate of 38% is easily reduced by a variety of tax deductions, so a wisely chosen bookkeeping company can significantly reduce the sum of tax payments. Besides, such a company will also provide your business with:

  • accounting support;
  • tax registration;
  • maintenance of tax records;
  • restoring of accounting records;
  • tax optimization;
  • solving actual accounting problems;
  • advice to and support for a full-time accounting department.

Peculiarities and Advantages of the Canadian Tax System

One of the features of the Canadian system is the priority of collecting taxes from individuals instead of companies. Such a system provides enterprises with great growth opportunities. They can increase the salaries of employees, from which the state can, in turn, collect a relatively large amount of taxes.

The number of payments is small, but each one is as detailed as possible: why, for what, and where. This information helps the state to optimize the tax burden. There are practically no hidden payments, unlike in other countries, including the CIS.

It should be kept in mind that the tax information is provided to the Canadian fiscal authorities even given that a company has no income in Canada. That’s why it is always necessary to keep in touch with a Canadian accounting company.