For individuals and owner-operators who want to pay less tax: Year End Planning

What's new?

Federal

Response to COVID-19 - introduction of wage subsidies (eg Canada Emergency Wage Subsidy) and benefits (eg Canada Economic Stimulus Benefit); extension of certain payment and production deadlines

Employee stock options - proposed limits to restrict the beneficial treatment of stock options.

Provinces and territories

Response to COVID-19 - introduction of various incentives (eg, reimbursement of BC PST on certain machinery and equipment); extension of certain production deadlines

• Alberta - decrease from 11% to 10% on January 1, 2020 and to 8% on July 1, 2020
  
• Nova Scotia - down from 16% to 14% on April 1, 2020
• Quebec - decrease from 11.6% to 11.5% on January 1, 2020

Small Business Rates

• Nova Scotia - decrease from 3% to 2.5% on April 1, 2020
• Ontario - down from 3.5% to 3.2% on January 1, 2020
• Prince Edward Island - decrease from 3.5% to 3% on January 1, 2020 and to 2% on January 1, 2021
• Quebec - drop in the going rate from 6% to 5% on January 1, 2020 and to 4% on January 1, 2021; small business CCPCs M&T rate remains at 4%
• Yukon - Decrease in non-M&T and O&M rates from 2% and 1.5% to 0% respectively on January 1, 2021

Research and development (R&D) tax credits

Alberta

Quebec

Yukon

Beneficial ownership records
New (British Columbia, Manitoba, Prince Edward Island) and planned (Nova Scotia, Quebec and Saskatchewan) provincial requirements for private companies to maintain ownership records

Year end tax planning checklists

Year end tax planning tips

Pay Deductible or Creditable expenses before the end of the year

Certain expenses can only be deducted from taxable income or qualify for a tax credit if the amount is paid before the end of the calendar year. If you plan to pay an expense that is tax deductible or qualifying for a credit early next year, consider doing so before the end of the year to take advantage of the deduction or credit on the income tax return.

Contact us here for the year end tax planning and tax preparation.

Read More: https://www.myaccountsconsultant.com/year-end-tax-planning-2020-for-individuals-and-owner-operators/