In Quebec, many small and medium-sized business owners are surprised at the amount of tax they have to pay each year. If this sounds like you, there are ways to significantly reduce your tax bill.
In fact, there are many tax credits available to corporations. In order to qualify, all you need to do is own an incorporated company, pay close attention to the company's income and expenses and be familiar with the benefits you are eligible to receive.
Incorporate your business to reduce your corporate taxes
There are two types of commercial companies in Quebec: partnerships and corporations. Only the latter can benefit from the maximum tax deduction. If you own a partnership, you might want to consider incorporating your business into a corporation, which will provide you with access to many tax benefits.
Track your income and expenses to reduce your corporate taxes
The tax benefits of incorporating a company nevertheless come with a share of responsibility. If you want to receive the maximum tax credit, you will need to keep a close eye on your business income and expenses.
For example, if you use your personal car to perform business-related tasks, keep a record of all your travel, as well as the financial resources spent on gas. These are tax deductible for corporations. This is just one example among many: consult a corporate tax expert to determine all your potential tax-deductible expenses.
Initiatives to reduce your corporate taxes
In addition to the benefits available to corporations, the government can adjust your tax rate if you take certain specific actions. If you make a donation to a charity on behalf of the company, for example, you can benefit from an attractive tax deduction.
Your company can also earn a tax credit if you accept an intern in training on your team or if you decide to hire a foreign worker. Depending on your company's area of business, other tax benefits may apply. Do not hesitate to consult an accountant to find out which ones apply to your company.
Reduce your corporate taxes with T2inc.ca services
The realm of taxation is complex, especially in Quebec, where companies have to pay taxes to both the federal and provincial governments. For this reason, it can be difficult to prepare your tax return without overlooking the benefits you are eligible for.
If you are looking for advanced accounting and tax expertise for the filing of your corporate tax returns, you can trust us: at T2inc.ca, we leave no stone unturned. Contact us now to take advantage of our expertise and reduce your corporate taxes.
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
