Introduction Canada offers its residents a high quality of life in the land of maple syrup, ice hockey, and vast natural beauty. Part of the Canadian experience is the complex web of taxes that fund essential services like healthcare, education, and infrastructure. As a prospective resident or immigrant, it’s worth knowing the tax landscape and …
Tax
Reasons for Not Receiving Your Climate Action Incentive Payment To address climate change and promote environmentally friendly practices, the Canadian government implemented a new carbon tax in 2023. To help offset the cost of this tax for citizens, eligible Canadians receive a rebate called the Climate Action Incentive Payment (CAIP), which replaced the Climate Action …
What is the Canada FPT Tax Credit? The Federal-Provincial-Territorial (FPT) tax credit is a system of tax incentives and relief measures designed to promote economic growth, social welfare, and fairness in the Canadian tax landscape. The FPT tax credit system is the collaboration between the federal, provincial, and territorial governments to deposit tax reliefs and …
The Canada Revenue Agency (CRA) collects income tax from working Canadians each calendar year (in Canada, the calendar year runs from January 1 to December 31). Taxes are normally due on April 30 following a tax year. Canada operates a marginal tax rate. A marginal tax taxes individuals based upon their earnings bracket, with low-income …
Severance is taxed just the same as regular income from work in Canada. However, there are ways to minimize paying regular taxes on severance pay, as discussed below. How Severance Is Paid In Canada Whenever an employee settles a severance package with their employer, there are three lawful ways an employer can pay the severance: …
What is the correct methodology for calculating the taxable benefit for rent-free apartments provided to building superintendents and the like? Summary A company needs to calculate the fair market value of the employee’s accommodations, plus any monies paid for utilities, cable, etc, minus any funds by the employee for the accommodations. “Fair market value” is …