FAQ

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Tax Return, accounting for companies in Canada and much more.

What is a Tax Return and a Tax Refund?

A Tax Return is the form where you report your income, deductions, credits, and taxes paid. A Tax Refund is the reimbursement of the excess tax paid over the amount owed.

Who needs to file an income tax return in Canada?

Anyone with a valid Social Insurance Number (SIN): permanent residents, Canadian citizens, or temporary residents such as students or workers.

If you don’t have a SIN, you can use an ITN (Individual Tax Number) or TTN (Temporary Tax Number).

How does filing taxes work for students?

Even without employment income, students can file taxes using forms like T2202 or TL11A Even without employment income, students can file taxes using forms like T2202 or TL11A.

Do I need to declare foreign assets (outside Canada)?

Canadian tax residents must declare foreign assets valued at CAD $100,000 or more that generate income. Use form T1135 (Foreign Income Verification Statement). Late filing penalties start at CAD $25 per day, with a minimum of CAD $100 and a maximum of CAD $2,500.

Do I need to report income earned outside Canada?

According to Canadian tax rules, all worldwide income earned by Canadian tax residents must be declared.

This includes income from abroad, but it doesn’t necessarily mean you’ll owe more tax.

Canada has tax treaties with several countries, including Brazil.

What are the types of business structures in Canada?

In Canada, you can choose from three main structures: corporation, partnership, or sole proprietorship. Each offers different tax and liability benefits.

What is the process for registering a business in Canada?

The process involves selecting a business structure, naming your business, registering at the provincial or federal level, and obtaining the necessary business and tax numbers.

What are the main taxes a business in Canada must pay?

Businesses in Canada pay Corporate Income Tax, GST/HST (Goods and Services Tax/Harmonized Sales Tax), and Payroll Tax if they have employees.

Do I need to register my business federally or provincially?

It depends on the scope of your business. Federal registration allows you to operate across all provinces, while provincial registration limits your business to that specific jurisdiction.

How long does it take to register a business in Canada?

The registration process can take from a few days to a few weeks, depending on the complexity of the business and the province.

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