Allontario ads

The income tax season is almost here. While preparing your income tax report, keep in mind the following:

Income Tax for Corporations

Pay Income tax on net income:

  • The income tax rate for 2019 is 11.5%
  • Small business deduction 2019, reducing the corporate income tax rate on the first $500,000 of active business income in Canada is 3.5%
  • Tax credit for corporations involved in manufacturing and processing, fishing, farming, mining and logging may qualify for a tax credit that may lower their income tax to 10%

Income Tax for Limited Partnership

  • Limited partnerships do not file Income Tax Returns.
  • Partners pay the business income tax based on their individual tax rate
  • Partners report business income in their personal return
  • Partners that are not Canadian residents do not have tax liabilities in Canada

Income Tax for Sole Proprietors (Self Employed)

Single owners report business income in their Income Tax Return

They pay their business Income Tax based in their individual tax rate

Tax rates for Sole Proprietors (Self Employed) in 2019 are:

  • for the first $47,630 – 15%
  • for the next $47,629 – 20.5%
  • up to $200,000 – 29%
  • income over $200,000 – 33%

If you need detailed information go to:

(Visited 31 times, 1 visits today)