3 Different Types of Taxes You Should Know About

 

You’ll be surprised to know that Canadians pay more taxes than Americans, and it's estimated that the tax to GDP ratio will increase to 34.4% in 2020. Many Canadians are happpy to pay more taxes every year because their government provides top-quality services using the tax revenue.

However, it's no secret that tax evasion is a crime in the country. This is why we suggest you learn about the types of taxes you must pay every year.

Let's find out more about Canadian taxes.

The word 'taxes' written in red font

Property Taxes

Do you own a residential or commercial property in Canada? If yes, you must pay property taxes. Property taxes help the government provide various services, including fire safety, garbage disposal, snow removal, and policing.

Income Taxes

You’ll be liable to pay income taxes if you live in Canada from 1st January to 31st December. The deadline for the income tax payment is 30th April every year, and you must submit the tax to the Canadian Revenue Agency. You'll have to pay taxes on your income earned in and outside Canada.

The Canadian government aims to achieve an equal distribution of income, and this is why they've adopted a progressive income tax system. The more your income is, the higher the income tax you'll have to pay.

You’ll be surprised to know that the Canadian income tax system works differently for people living in Quebec. If you’re a Quebec resident, you’ll have to file separate tax returns for provincial and federal taxes.

Corporate Taxes

As a business owner, you'll have to pay taxes on the capital and profits. You’ll have to file corporate taxes at the federal and provincial levels. The corporate tax rate can vary in different provinces and depends on the size of your company.

Understanding the technicalities of income and corporate taxes can be challenging. We recommend you hire qualified accountants who’re aware of the Canadian tax laws and can help you file your taxes in no time. 

An accountant analyzing financial statements

Top-Notch Tax And Accounting Services Available In Canada

If you want to file personal and corporate taxes, visit Accounting Plus. They’ve been providing top-of-the-line accounting services for over twenty years. They can file personal and corporate taxes. Their team of accountants is aware of the online tax filing system and can help you pay your taxes from the comfort of your home.

They also provide business planning services to Canadian startups. You can get in touch with the representatives at Accounting Plus to learn more about their personal and corporate tax services Markham.

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