Jan 20, 2025
Understanding Corporate Tax Obligations for Small Businesses in Calgary
Corporate taxes are a key responsibility for small business owners in Calgary. Staying informed about your obligations can save you money and ensure compliance with tax laws. Here’s what you need to know about corporate taxes in Calgary.
1. What Are Corporate Taxes?
Corporate taxes are charged on your company’s profits. In Calgary, businesses face both federal and provincial taxes. The federal rate is 15%, while Alberta offers a low provincial rate of 8%.
2. Filing Deadlines
Year-End Deadline: Your corporate tax return (T2) is due six months after your fiscal year-end.
Installments: Businesses must pay tax installments throughout the year based on projected income.
3. Common Deductions for Small Businesses
Take advantage of these common deductions to lower your taxable income:
Office Expenses: Rent, utilities, and supplies.
Employee Salaries: Wages paid to employees, including yourself if incorporated.
Professional Fees: Accounting, legal, or other professional services.
4. Recent Changes in Tax Laws
Keep an eye on tax changes, including:
Small Business Deduction Limit: Capped at $500,000, which qualifies businesses for lower tax rates.
CEBA Loans: If any portion of a COVID-19 relief loan is forgiven, it must be reported as income.
5. Penalties for Non-Compliance
Failing to file or report taxes accurately can lead to:
Penalties and interest on unpaid taxes.
Scrutiny in future audits.
6. How Professional Help Can Simplify Corporate Taxes
Navigating taxes can be complicated. Professional services like Charis Imprint can:
Maximize eligible deductions.
Ensure timely and accurate filing.
Offer tailored financial advice for your business.
Corporate taxes don’t have to be a headache. Understanding your obligations and getting the right support will keep your business on track.