CCPC Tag

There are many ways small business owners can optimize their corporate income taxes for 2020. This post is for the small to medium-sized businesses operating in the corporate form. Further, we do not recommend relying solely on this post for corporate tax planning purposes. It is always better to consult your corporate tax accountant to get wholesome tax advice.  Government Support to...

In Canada, there are different types of corporations for tax purposes. Canadian Controlled Private Corporations (CCPC) enjoy lower income tax rates on corporate profits because of small business deduction. In order to qualify for the CCPC status, certain requirements need to be met. For example, the control of the corporation should not be with a non-resident or public corporation. Word of...

What is the investment income of CCPC? Investment income includes income from property such as rental income, interest income, dividends, and royalties. Rental income can be either business income or investment income depending on the situation. Corporation tax rates are lower in Canada as compared to personal income tax rates. Corporate tax rates are further lowered for Canadian Controlled...

Dividends are paid from the after-tax income of the corporations to shareholders. Whether you want to withdraw the salary from your corporation or pay dividends to yourself, it depends on a specific tax situation. Whether you are opting to withdraw salaries or dividends from a Canadian Controlled Private Corporation (CCPC), because of the integration principle of Canadian tax system taxes...

If you are an owner-manager of a Canadian Controlled Private Corporation (CCPC) you can use certain tax planning strategies to optimize both personal taxes and corporation taxes in Canada. You should always exercise caution while using the below options since there are other factors involved which may impact your tax outcome. Some of the options which are available to owner-manager or...