Tax Returns for Spinning Industry

The state budget of Canada has many different sources. However, 80% of the total amount of money comes from tax payments. They are paid by residents and non-residents who live in Canada and earn money there. Regular tax payments allow the Canadian government to implement many socially beneficial programs, including pensions, benefits for mothers and unemployed people, etc.

Who Pays Taxes?

Tax liabilities apply to everyone who lives in Canada and makes a profit there, regardless of the type of activity. Without exception, all persons who have received some kind of income are obliged to report it to the state and pay taxes. To do this, individuals fill out a personal tax return in Canada. They do this once a year from February 18 to April 30 by filling out a special form T1.

Non-resident foreigners staying in Canada for more than 183 days are also required to pay monthly taxes on the profits received.

tax preparation in Canada
Man filling out tax returns

Types of Tax Contributions

The Canadian tax system has four types of tax contributions: direct, indirect, payroll tax, and social security tax. Usually, tax agents pay income tax (direct) and consumption tax (indirect).

Among all payments to the Canadian state budget, the largest part is income tax (32.5%). This is followed by various non-tax receipts (19.55%). Income tax brings to the budget 8.6%, while the total tax revenue is 11%.

Spinning Industry

How to get help paying taxes

Any inaccuracies in the tax return that result in the taxpayer paying less lead to serious consequences. That is why it is extremely important to take filling out and filing a tax return seriously. This explains why taxation services are so popular in Canada.

Tax companies in Canada maintain a staff of qualified professionals who are always ready to help. The cost of their services depends on the complexity of the situation. For example, the cost of assistance with a regular tax return to a person with one source of income will be about 25 CAD. Those who have tax obligations in the United States, for obvious reasons, will need to pay more to the US tax accountant.

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