When and How to Pay Taxes
Taxes are an important liability that you have to pay once or multiple times a year. With multiple types of taxes and business structures, it is not always clear which taxes you have to pay and what are the deadlines for each of these tax liabilities.
Adding to the overall stress of your situation are the interests and penalties that can hit you if you don’t pay your taxes on time. The penalties can put you into some serious debt and the excessive interests can reflect badly on your overall credit score.
So in order to avoid these penalties and ever so troubling interest charges, here is a guide to help you through this pressing dilemma.
Personal Taxes
We are starting off with the most obvious type of tax, which is personal tax; personal taxes are the taxes that you pay as a citizen of a country. These taxes vary depending on the income of every individual and are mostly based on the income that you receive.
Most Canadians, with respect to income tax, fill a personal tax return slip. On a personal tax return slip, you have to add all of the information about your income regardless of its specific source. This means that you will have to mention all of the income that you receive from investments, employment, or any other source. In this statement, you will also claim any and all personal deductions that you have as a result of any dependencies, donations, or medical expenses.
Now that you know what you are supposed to fill for your personal tax return, you should also know when to deposit this tax return form. If you are an employee and have no business or venture of your own, regardless of the size and the massive appeal, you should file your taxes before the 30th of April. On the other hand, if you are an employee that has small business ventures, you will have to mention them in your corporate tax statement.
Corporate tax
With personal tax out of the way, let’s move onto corporate tax. In order to file a corporate tax report, you will have to file a corporate income tax return. Here you will state all of the different ventures and business enterprises that you own. You must also add to this list your financial position, income, and expenses of your corporation.
Your company has a total of six months to fill this corporate income tax return after its year-end date. Although you might have nearly six months to fill in a proper income tax report, you have to pay your corporate tax balance sooner.
For smaller corporations, you will need to pay your company’s taxes after the third month of its year-end date. This means that you have to pay all of your company’s balance taxes, before the sixth month and after the third month. However, larger corporations have a different deadline.
Other Taxes
It’s unfortunate to consider that even after you have paid your personal tax and your corporate tax, there are other taxes as well. Nevertheless, here are some other taxes that you should be wary of. In the case of you being registered to the GST/HST, your filing deadline is not set by a predetermined deadline; rather your filing frequency determines the deadline by which you have to pay all of your taxes.
Conclusion
Filling, filing, and keeping track of all of your taxes is a very tough task, especially if you have to go through filling three forms almost every year, or worse, every month. So, one of the best solutions to all of your problems is using great software that can help you keep track of all of the taxes that you have to pay, software like QuickBooks.
QuickBooks is online accounting software that allows you to utilize all of its services at any time from anywhere. This means that you can file and fill all of your taxes and keep track of your accounting information on the go. What makes QuickBooks so special is the fact that it stores all of your data on the cloud that will prevent you from losing all of your data.
Contact your Accountants today click on this link —> https://capexcpa.com/contact
- The Capex Team