What are the Legitimate Ways to Decrease Business Taxes in Canada?
In this post, we will take you through some of the best legal techniques to save business taxes in Canada. There Are several legal ways that you can make use of to save your corporation’s taxes. So, why be untruthful in the first place? We’re going to talk about the top 5 legitimate ways to decrease business taxes in Canada. Incorporate your small business: The foremost legitimate way to decrease business taxes in Canada is by incorporating your corporation. Companies pay a pretty low tax rate of just 12.2 percent on the first half-million dollars of profit. In the contrary, individuals can pay as high as 52% percent in taxes if the reach their highest tax bracket (at graduated rates). So, you see, you can save in taxes by just incorporating your small business. Keep in mind that when income is withdrawn from the corporations, it adds back to individual’s income with a credit available for paid. So it’s more of a tax deferral tool! Having a higher income, why not to set u...