What tax credits can you benefit from?

There are plenty of great tax credits that startups around Canada can take advantage of. These tax credits are often offered as a means of helping such businesses to get off the ground and to help improve the Canadian economy.

Many of these credits are being promoted by the Canada Business Network. This is run by the Canadian government to promote the growth of small businesses around the country. This could potentially help your business to grow.

How Do Small Business Deductions Work?

You can get a tax credit through the Small Business Deduction program. This is if you use a private company out of anywhere in Canada and have full Canadian control over it. The credit you earn will be based on what is found on your T2 income tax statement. You may be able to claim a tax credit of up to $500,000 although the total will clearly vary based on who you contact and what you might be eligible to receive.

Get a Credit On Your Apprentice

Apprenticeships may be offered by your business. You can get a credit of up to 10 percent of your apprentice’s salary through the Apprenticeship Job Creation Tax Credit.

Hiring Credits Are Available

Depending on the number of people you hire and the total amount of premiums you spend, you might be eligible for hiring credits. These credits may be good for up to $1,000 towards the payroll that you spend.

Watch For Credits By Region

Depending on the business you run, you might be eligible for some specific tax credits. However, these tax credits are often restricted to people in certain provinces. The Book Publishing Tax Credit is only available in British Columbia, for instance. Meanwhile, the Digital Media Tax Credit, which offers a credit of up to 50 percent on the cost of producing digital media products, is only good in Nova Scotia.

These regional tax credits are designed to encourage businesses to move to specific regions of Canada where such businesses are not traditionally located. The Yukon Manufacturing and Processing Profits credit particularly offers benefits to businesses in the Yukon Territory that work with manufacturing functions in mind, for instance.

You should look around to see what tax credits are available for your business in Canada. Think about what you can get based on your business’ demands and your location. You might even want to consider incorporating your business in one part of Canada in the event that there’s a tax credit that you can substantially benefit from.