Tax services for businesses

Tax Services for Businesses, Self-employed, Corporations and Organizations in Montreal

Everything you need to know about corporate taxes

To create a business is to participate in the development of the state by creating jobs, but also by the various taxes to which entrepreneurs are subject. Taxes vary depending on the legal status of the company. We expose here the details on that matter.

Social contributions for the self-employed

People who do Liberal work have to pay taxes. This includes craftsmen, farmers, self-employed tertiary workers who work in the field of computer science and the Internet...

An annual tax return is therefore a necessity to be in good standing with respect to the law.

Contributions from self-employed people include the Generalized Social Contribution (GSC), the Social Reduction Contribution (CRDS), Family Allowances, Disability-Death, Sickness and Maternity, Contribution for Vocational Training...

A precise calculation is made to find out the taxes of each self-employed person. At first, it is not yet possible to know the annual income of each self-employed person. The calculation is then based on a flat-rate income that is determined according to the nature of each person's activities. After 2 years, the average annual income is known. This becomes the basic amount for calculating taxes for each self-employed person.

If, for 2 consecutive years, the self-employed person has not reported his or her income or has declared a zero income, he or she will be struck off RSI.

Taxes for SMEs

Starting a business requires the raising of a certain fund. As soon as the company is founded, it is essential that the entrepreneur pays the registration fee, indicates the name of his company, takes the necessary steps to protect him, proceeds to purchase a domain name for his visibility on the web...

Once your SME is created, you must regularly pay the taxes to ensure that you are in good standing with the state.

There is the tax on profits. A small business usually pays Corporate Income Tax or CIT. The tax rate is about 33% when the company's profits are above 38,120 dollars excluding tax. If it is less than that amount, the tax rate is 15%.

year of the start-up of the business. After that, there will be a discount over the next few years. The amount of this allowance is based on the duration of the tax exemption that the company has received.e année de démarrage de l’entreprise. Après, il y aura un abattement sur les quelques années suivantes. Le montant de cet abattement est en fonction de la durée de l’exonération d’impôt dont l’entreprise a bénéficié.

The territorial economy contribution includes the contribution on the added value of companies and the property tax of companies.

Compulsory contributions for SMEs include Value Added Tax or VAT.

New SMEs have a choice between the application of VAT and the VAT deductible.

The VAT deductible is available if the new SME has a turnover of no more than 82,200 dollars excluding tax. This deductible consists of the possibility of not charging VAT to customers. However, the company will not be able to recover this VAT on purchases.

There are additional taxes depending on the infrastructure and services of the company: offices, vehicles, training...

The tax contribution for a partnership

A partnership refers to a company with many partners who offer funds for the purpose of building capital. The profits for each partner will then depend on the amount of his shares in the company.

Social contributions for a corporation to the individual can be made under a corporate tax system. The company can choose this type of tax on its own. It also happens that the tax authorities offer them this system and talk to them about its advantages.

The corporation must also pay income tax.

There is also a tax system that may be of interest in a partnership. This is the so-called tax system: almost transparent.

For this tax system, each partner, having allowed the formation of the partnership, will be taxed on his quota.

Under this tax system, it is necessary for each partner to pay his taxes so as not to have any problems with the tax authorities.

Taxation of associations

Generally, associations are not-for-profit. However, many associations do activities that allow for significant income gain, especially when the members are very active and the association in question begins to make a name for itself in its field of investigation.

When an association has lucrative activities, it becomes immediately taxable. This is easily reflected. It is not possible for associations to hide. Just by organizing a party, it is essential to make requests for room rental. That is why the leaders of the association must think about declaring income so as not to have tax problems.

When the turnover for the last year ended is however less than or equal to 84,000 dollars, the association is not subject to a tax.

An association with lucrative activities is generally subject to corporate tax.

There is also the tax on heritage income. This taxation is mandatory for activities such as financial investments, real estate rentals... In this case, all impositions are done in accordance with the principles and conditions of common law.

Taxation for non-profit organizations

Non-profit organizations are generally exempt from taxes. However, this does not mean that these organizations do not do money-making activities, if only to support the survival of the organization.

It is possible that this type of association offers paid products and services. And it must be able to demonstrate that the gains are only used to operate the organization and not to provide financial benefits to executives and members. If necessary, the organization will be subject to commercial taxes whose characteristics are defined by the current law.

To learn more about this information, please contact JKB Services, a consulting firm offering advice and numerous accounting services.