Are you a business owner or a manager? Have you ever thought of hiring a tax consultant in Calgary? If not, you should! Why?

It is because Canadian corporate tax law is complex and vast. Not every ship can go through it without an experienced caption. How much do you know about it? When it comes to running a business, it is important to understand the various taxes that come with it.

In Canada, there are three main types of corporate taxes that every business owner should be aware of. These taxes can have a significant impact on your business’s financial health, so it’s important to understand them to make informed decisions. Today, we will be discussing the three types of corporate taxes in Canada, their benefits, and why you should hire a professional tax consultant.

Federal Corporate Tax

The federal corporate tax is a tax on the income of a corporation that operates within Canada. The tax rate for this type of tax is currently 15% for small businesses & 38% for large businesses. The following are the key features of federal corporate tax –

• It applies to all corporations operating within Canada, regardless of their size and industry
• The tax rate varies depending on the size of the corporation
• It is paid annually and calculated based on the corporation’s income for the previous year

Benefits

• Provides funding for government programs and services
• Encourages corporations to invest in Canada by offering lower tax rates for small businesses
• Supports economic growth by providing corporations with incentives to invest in research and development

Provincial Corporate Tax

The provincial corporate tax is a tax on the income of a corporation that operates within a specific province or territory. The tax rate for this type of tax varies depending on the province or territory in which the corporation operates. The following are the key features of PCT –

• It applies to corporations operating within a specific province or territory
• The tax rate varies depending on the province or territory
• It is paid annually and calculated based on the corporation’s income for the previous year

Benefits

• Provides funding for provincial programs and services
• Encourages corporations to invest in a specific province /territory by offering lower tax rates
• Supports economic growth by providing corporations with incentives to invest in the local economy

Payroll Tax

The payroll tax is a tax on the wages paid to employees by a corporation. This tax is split between the employer and the employee, with the employer being responsible for deducting and remitting the employee’s portion. The following are the key features of the payroll tax –

• It applies to all corporations with employees
• The tax rate varies depending on the province or territory in which the corporation operates
• It is paid monthly or quarterly, depending on the corporation’s remitting frequency

Benefits

• Provides funding for government programs and services
• Encourages corporations to create jobs by offering lower tax rates for small businesses
• Supports social programs such as employment insurance, which provides financial support for employees who lose their job

Consequences of Failing to Submit Corporate Taxes on Time

Failing to submit corporate taxes on time can result in significant consequences for a Canadian corporation. It is where an expert tax consultant plays a vital role. The professional can save your company from late filing penalties, interest charges on outstanding amounts, legal action by the Canada Revenue Agency, loss of reputation with stakeholders, etc.,

Get Our Expertise

At AM Accountants Professional Corporation, we understand the importance of corporate taxes and can help you navigate the complex tax system in Canada. We offer a range of tax services, including tax planning, compliance, and representation.  Talk to our tax consultant in Calgary.

Contact us today to learn more about how we can help you with all your corporate tax needs.

When it comes to managing your finances, it is crucial to have a skilled professional by your side. While accountants and Chartered Professional Accountants may seem similar, there are significant differences between the two. A chartered professional accountant in Calgary is way superior in terms of experience, skills, knowledge, and handling critical business situations.

If you are considering hiring a CPA, make sure you select the right professional. Here, we will be discussing the crucial factors that make a chartered professional accountant different from an accountant and why hiring a professional CPA is always a better choice.

chartered professional accountant

Education & Professional Designation

A chartered accountant must have a minimum of a bachelor’s degree in accounting or a related field. CPAs must pass a rigorous examination and meet strict criteria to earn their designation. CPAs are regulated by a professional body, which ensures that they meet specific standards and adhere to a strict code of ethics. Accountants do not have to meet the same requirements and do not have the same level of regulatory oversight.

Professional Development

CPAs are required to complete ongoing professional development to strictly maintain their designation. They have a more extensive knowledge base and expertise in accounting, taxation, and financial management than accountants. Accountants are not required to do so.

Business Decision-Making

An expert chartered professional accountant at AM Accountants Professional Corporation has a more significant understanding of business operations & can provide valuable advice beyond financial management. Above all, CPAs are skilled in analyzing financial data and providing valuable insights to aid in business decision-making.

Compliance & Risk-Management

CPAs are knowledgeable in tax and regulatory compliance, ensuring that businesses remain compliant with laws and regulations. They are skilled in identifying and managing financial risks, ensuring that businesses are protected from potential financial losses. CPAs are required to carry professional liability insurance, providing an added level of protection for clients.

Is Hiring A CPA Costly?

Hiring a chartered professional accountant can be more expensive than hiring an accountant due to their advanced education, professional designation, ongoing professional development, and regulatory oversight. However, the value it can provide in terms of financial management, compliance, risk management, and business advisory services can far outweigh the cost. Ultimately, it depends on your specific needs and budget.

Hiring a Professional CPA Is Always a Better Choice

While accountants can provide valuable financial management services, hiring a professional chartered professional accountant offers numerous benefits, including –

• A higher level of education and professional designation
• Regulatory oversight to ensure adherence to professional standards and ethics
• Ongoing professional development to maintain knowledge and expertise
• An extensive knowledge base in accounting, taxation, and financial management
• A greater understanding of business operations and decision-making
• Professional liability insurance to provide added protection for clients
• A focus on compliance and risk management to protect businesses

Want To Get Rid Of CRA Tax Audits?

A tax audit is an examination of an individual or business’s financial records and tax returns to ensure compliance with tax laws and regulations. A chartered professional accountant can provide valuable guidance and support during a Canada Revenue Agency tax audit. With their knowledge and expertise, they can help you prepare for the audit, represent you during the audit process, and negotiate any disputes or issues that arise. A CPA can also help you implement sound financial management practices to reduce the likelihood of a tax audit in the future.

Get Your Accounting Problems Solved

AM Accountants recognizes the utmost importance of having a knowledgeable and experienced chartered professional accountant on your side. A full range of financial management services, including tax planning and preparation, accounting and bookkeeping, and financial advisory services, are offered by our team of qualified CPAs. Get in touch with us right now to find out more about how we can meet all of your financial management needs.