Canada is a country in which taxes play an integral part of everyday life.. Both individuals and companies pay taxes annually to the provincial or federal governments. It is important to understand the tax system for anyone living or working in Canada 🇨🇦 ️ .
Canada Revenue Agency (CRA) a federal government agency responsible for administering Canada’s tax laws collects income taxes from individuals and companies plethora indirect taxes from sales of goods and services!
The tax year in Canada is the calendar year so it runs from January 1 to December 31 📆 🇨🇦 ️. Every year individuals and businesses are required to file a tax return with the CRA ️. The tax return is a form that must be completed and submitted to the CRA by April 30 of the following year ️.
Individuals are required to report their income and deductions on their tax return to determine the amount of taxes they owe 🔛. The tax return includes information as income from employment pensions and investments also deductions for medical expenses and charitable donations .
Companies must also file a tax return with the CRA ️. The company’s taxable income is the amount of income that is subject to taxation . This contains income from sales and services in addition to investment income . Companies must also pay taxes on capital gains which are profits realized when an asset is sold at a higher price tag than it was purchased for 🔛 ️.
Payroll taxes the Goods and Services Tax (GST) the Harmonized Sales Tax (HST), and other taxes are in addition to income taxes that people and businesses must pay . The GST is a federal tax imposed on most goods and services the HST is a combination of the federal GST and provincial sales taxes and the Payroll Tax is governed by the provinces and used to fund social programs like health care 🔛 ️.
You can take tax deductions to lower your taxes . You can also claim tax deductions on child care expenses or health care costs 🔛 🧒. Employers’ salaries and office supplies can be deducted by companies 🏢.
Tax credits can also be claimed to reduce taxes owed . These include the Canada Child Tax Benefit which is a federal tax credit for families with children and the GST/HST credit which is a federal tax credit for low-income Canadians 🇨🇦 ️ 🧒.
On the provincial level provincial income taxes are also collected . Provincial tax rates vary around provinces and territories so individuals and companies must make sure to pay the correct amount of taxes owed to the province .
In summary taxes are an important part of life in Canada and everyone living, and working in the country needs to be aware of the basics of the Canadian tax system 🇨🇦 🍁. The tax year runs from January 1 to December 31 and individuals and companies must file a tax return with the CRA by April 30 of the following year ️. Taxes are collected by the CRA and they include income taxes GST HST and payroll taxes . Tax deductions and credits can also be claimed to reduce the amount of taxes owed . … .
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