Hi guys, I am relocating to Canada from Europe, need a bif of taxation advice if possible. Could anyone advise me on the current progressive Ontario taxation scale for individuals - even wiki data contradicts here! also any help on taxation for the sole proprietors would be very highly appreciated! Cheers, RS
http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html If you're a sole proprietor all the business income is treated as personal income and thus would use the rates above.
Ontario is the second lowest taxed province in Canada. I find that being self-employed it's not so bad when you add up all the expenses and deductions and the such. Toronto sucks though.
You're not allowed to be Canadian unless you hate Toronto, it's just a rule. We hate Torontonians even more because they don't abide by that rule. It's a fine city, but I wouldn't live there. It's got all the advantages and disadvantages of a big city. Great restaurants, great nightlife, shows, and plays but then you also get the over-inflated real estate market, traffic and gang related crime that comes along with a big city.
Thanks for the heads-up I was thinking... Rather then becoming a sole proprietor I could create a one-man LLC and then write off some of the personal expenses like a car for instance on the business. I will assign myself a minimal salary (enough to qualify for some reasonable mortage) and this way will minimize my personal income taxes. Sounds good in theory but how feasible is that in Toronto? Toronto is the only CAN city that has a sizeable Belarusian diaspora and this overrides all shortcomings
great and thanks tke71709. Can i write off some expenses on the business being a sole proprietor though? or do i have to be an LLC to do that?
You can write it off as a sole prop, but you won't be able to do any fancy things like pay yourself dividends or split the income over years. It's only a few hundred bucks to incorporate and it helps to protect you legally so I wouldn't not do it.