Canadian Corporate Income Tax Accounting – Shareholder Benefits

Canadian Corporate Income Tax Accounting – Shareholder Benefits

For Corporation in Canada, the Canadian tax system provides for a two levels system of taxing corporate income.  One of the first is in the corporation, and the second is in the hands of their shareholder when dividends are received from the Canadian corporation. As a side note companies that operates in Canada needs to understand Canadian tax laws hence, this is the benefits of having a Canadian accounting firm whose Accountants are qualify and experience with Canada’s cooperate Accounting, Tax laws and Accounting Principles. It is important that you choose an accounting firm that knows what they are doing and not long looking to make a quick cash. At the end of the day you need to know when CRA require verification and documentation your accounts are intact and flawless. Dividends received from a corporation resident in Canada by an individual is subjected to a different tax treatment which is based on the principle of incorporating the income of the corporation and that of the shareholder.