Are there any new tax breaks in 2022 for small businesses in Canada? As of now, there are three tax-saving opportunities for Canadian businesses and contract workers to take advantage of. In this article, we are going to provide a brief overview of the three tax credits and who can apply for them.
Expenses
The Canadian Government allows businesses to write off expenses and taxes related to running a business. These expenses go a long way in reducing the amount of tax that you need to pay every year. Businesses can deduct expenses from many categories, including:
- Travel
- Office Supplies
- Phone & Internet
- Software
Writing off expenses is available to all forms of businesses, from sole proprietors to large corporations.
Provincial Programs
Working with partnered companies of The BC Government is another way that businesses can lower their tax payable. The BC Government has created programs to support businesses that deal in the following areas:
- Foreign Non-Business Income
- Oil and Gas
- Farming & Agriculture
- Scientific Research and Development
- Marine Transportation
If you have a business in one of these industries, you may be eligible for additional tax credits. Speak with an accountant to find out if you are eligible.
Small Business VC Tax Credit
The Small Business venture capitalist tax credit is an innovative tax credit for large corporations. Investing in shares of small businesses is a great way for corporations to diversify their income portfolio, lower their tax burden and support local businesses.
Businesses that invest in small BC companies may be eligible to claim this return when they file their T2 Corporation Income Tax Return. Speak with an accountant to learn more.
Work With a CPA For a Better Return Process
Missing out on any of these tax credits can result in leaving thousands of potential tax credits on the table. Working with a CPA is the best way to ensure business taxes are done accurately and effectively.
Our time works hard for our clients to find unique tax-saving opportunities. We have a small firm that provides close and caring support to all our clients. Contact us today to learn more.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
