Go Global – expanding to Canada
Canada is one of the top ten trading nations with a highly globalized economy and tight connections to the US, which makes its markets inviting for foreign companies. Greenstep offers global consultancy services to ensure smooth and effortless operations in Canada and over 100 other countries.
Canada: globalized economy with rich natoural resources
Income tax in Canada
All residents of Canada are subject to tax on their worldwide income. Nonresidents of Canada are generally subject to tax only on their Canadian source income, including income from a business or employment carried on or performed in Canada, and taxable capital gains from the disposition of “taxable Canadian property” as defined in the ITA.
Corporate income tax in Canada
As with individuals, corporations that are resident in Canada are taxed on their worldwide income. A corporation is generally considered to be resident in Canada for income tax purposes if its central management and control are exercised in Canada. Further, a corporation is deemed by the Income Tax Act to be resident in Canada if it was incorporated or continued into Canada. The federal income tax rate for general corporations is 15 %. Provincial corporate income tax rates range from 8 % to 16 %.
Goods and Services Tax
The comprehensive federal Goods and Services Tax (GST) generally applies to the supply of goods and services made in or imported into Canada and the rate of the tax is currently 5%. The GST system is administered by the Canada Revenue Agency (CRA). GST is charged at each stage of the selling process. Certain provinces (Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, and Prince Edward Island) have harmonized their provincial sales taxes with the GST to form a single Harmonized Sales Tax (HST). The HST has essentially the same rules as the GST.
Our One Touch service model
We recognize that some countries are more important to our customers than others. Therefore, we offer tailored service solutions to provide the most value to our customers and take into account all local requirements and possible language challenges your subsidiaries might face.
With our One Touch model, we offer you a tailored solution that you can optimize exactly to your needs. With the help of MSI Global Alliance, we can take care of your financial services and help the cross-country coordination to be as smooth as possible.
Our MSI Global Partner in Canada is Hogg, Shain & Scheck Professional Corporation. It is a boutique professional accounting firm with over 46 years of experience providing audit, tax, and advisory services to entrepreneurs, corporations, and charities & not-for-profit organizations in the Greater Toronto Area and across southern Ontario.