The imposition of Canadian tax on a non-resident’s business income is typically dependent on whether the business activity is sufficient to create a taxable presence in Canada. A non-resident’s income from a business will be taxable if the non-resident “carried on a business in Canada”. The question of whether or not a business is being […]
Filing and Reporting Requirements
Canadian residents are required to file an annual Canadian income tax return with the Canada Revenue Agency (CRA) and to report their worldwide income. Canadian residents are also required to file information returns with respect to certain foreign property interests, as well as certain transactions with non-arm’s length non-residents or transactions with foreign trusts. Corporations […]
Canada Income Tax Rates
Federal taxes on personal income are marginal, increasing with the amount of income. The federal marginal tax rates for individuals are: 15 percent on the first C$46,605 of taxable income; 20.5 percent on the next C$46,603 of taxable income; 26 percent on the next C$51,280 of taxable income; 29 percent on the next C$61,352 of […]
Canada Tax Residency for Tax Purposes
Ascertaining an individual’s residency for Canadian income tax purposes generally involves a determination of whether the individual was “ordinarily resident” in Canada or has otherwise established significant residential ties to Canada. The ITA also deems certain persons to be resident in Canada. An individual who is physically present in Canada for a total of 183 […]
Taxation for Canadian Corporations
Canada’s tax laws are based on residency and source. In Canada, income earned by Canadian residents and income earned by non-residents sourced in Canada are subject to Canadian income tax. Under Part I of the federal Income Tax Act ( ITA), Canadian residents are taxed on their worldwide income. In contrast, non-residents are taxed on […]
Foreign Companies Establishing a Business in Canada
One of the threshold issues for a foreign entity to consider when seeking to establish a business in Canada is what form the business should take. The form selected should reflect both operational and tax considerations. The foreign entity will need to determine whether that business should be carried on directly, as a branch of […]
Directors’ Residency Requirements for Canadian Corporations
The federal Canada Business Corporations Act (the CBCA) requires that at least one-quarter of the directors of most federal corporations be resident Canadians. For provincial corporations, here is a list of the requirements: Alberta Directors’ residency requirements: YES At least 1/4 of the directors of a corporation must be resident Canadians. British Columbia Directors’ residency requirements: […]
Corporate Ownership Restrictions in Canada
Federal and provincial governments impose corporate ownership restrictions in certain strategic or sensitive industries, including: Financial Institutions: Generally, without ministerial approval, a foreign bank cannot own more than 10 percent of any class of shares in any Canadian bank, including a Canadian bank subsidiary. There are various exceptions to this general rule. Broadcasting: In an […]
The 7 Biggest Mistakes You Can Make While Trying to Expand Your Small Business
Managing the Chaos of Growth Growth is a topic entrepreneurs love to contemplate, but it’s not one that gets studied enough. If you’re willing to learn from the past – and even your peers — you’ll discover that others have already made a litany of scaling mistakes so that you don’t have to. They’ve also […]
Just 6% of Small Businesses Focus on Keeping Customers
this happen. But according to a new report from The Manifest, only 6% of small businesses are focused on retaining their customers. This is despite the fact their main digital marketing goal is to increase sales. The data reveals most small businesses aren’t placing a priority in engaging existing customers. The report attributes this to […]