As a business owner, you want to maximize your profits while limiting your expenses. One effective way to achieve this is by taking advantage of corporate tax deductions in Canada. Did you know that you could claim part deductions against some expense heads? Yes, an efficient Business Planning Solution Canada can help save on corporate taxes by claiming deductions on some expenses, but only to a certain extent. For example, contributions made to charity, entertainment expenses, cost of providing an automobile to staff, are some operational expenses which could be claimed for part deductions. While capital expenses are strictly banned from being deducted, you could claim depreciation of assets. Similarly, affiliate payments are deductible if they reflect arm's-length charges. After a change in control, transfers of losses and other deductions between unrelated corporate taxpayers are strictly restricted. There are basic tax deductions that you can take “above the line” to reduce your adjusted gross income, as well as other deductions that you can take later by itemizing. Here are a few typical tax deductions you can take advantage of:
Salaries and Wages
Salaries and wages are deductible expenses for businesses. This includes salaries, wages, bonuses, and other forms of compensation paid to employees. As long as these expenses are reasonable and necessary for the business, they can be claimed as a deduction on your tax return.
