Frequently Asked Questions About Taxes
When it comes to accounting and taxes, clients have many questions, but they often find answers difficult to come by. Misic Accounting wants to arm you with the most accurate information available to help you deal with tax issues, and to do this, we’ve answered some of the most frequently asked questions about your taxes.
1. What are the tax rates for businesses in Ontario?
Businesses in Ontario are subject to various tax rates, including federal and provincial income tax, sales tax, and other taxes. The federal income tax rate for businesses in Ontario is 15% on the first $500,000 of taxable income and 26% on any additional taxable income. The provincial income tax rate for businesses in Ontario is 11.5% on the first $500,000 of taxable income and 13.5% on any additional taxable income.
2. How do I register my business for taxes?
To register your business for taxes, you need to obtain a business number from the Canada Revenue Agency (CRA). You can apply for a business number online or by contacting the CRA. You will also need to register for other taxes, such as the goods and services tax/harmonized sales tax (GST/HST), if applicable.
3. When do I need to file my business taxes?
The deadline for filing business taxes in Ontario depends on your business type. Sole proprietors and partnerships generally have to file their taxes by June 15th of each year, while corporations must file their taxes by six months after the end of their tax year.
4. What deductions can I claim on my business taxes?
As a business owner in Ontario, you may be able to claim various deductions on your business taxes, such as expenses related to your business, depreciation of business assets, and certain employee benefits. It is essential to keep good records of your business expenses to ensure that you can claim all of the deductions you are entitled to.
5. How do I calculate my business’s taxable income?
To calculate your business’s taxable income, you need to subtract eligible deductions from your business’s total income. The resulting amount is your taxable income, which is subject to income tax.
6. How do I pay my business taxes?
You can pay your business taxes by making installments throughout the year or by paying the full amount when you file your tax return. You can make payments online or by mail using the payment slip included with your tax return.
7. What happens if I don’t file my business taxes on time?
If you don’t file your business taxes on time, you may be subject to penalties and interest charges. It is important to file your taxes on time to avoid these additional costs.
8. Can I get help with my business taxes?
Yes, you can get help with your business taxes from a professional accountant or tax preparer. They can assist you with tax planning, preparing and filing your tax return, and answering any questions you may have about your business taxes.
If you have any more questions about accounting or taxes, get in touch with the expert at Misic Accounting. As the best Chartered Professional Accountant and Bookkeeper in Cambridge, Ontario, my mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I am providing you with accurate financial advice in a timely and eﬃcient manner.
Get in touch with me today!