Interestingly, even those authors whose works are far from reality often write about tax payments in their books. This is not surprising, since many science fiction writers, especially those who work in the “social fiction” subgenre, fantasize about various schemes of the functioning of terrestrial and extraterrestrial civilizations. And the profit that the state receives from the income of citizens is the most important element of budget formation. These money are used to support those in need, improve the environment and implement other important state programs.
Canada is a great example of this. 8/10 payments to the country’s budget are tax deductions. For the average Canadian, that is about 20-30% of income. This may sound like a lot, but it is not. Finnish citizens, for example, give the state at least 35% of their income.
Characteristics of Taxation
The current rates were adopted in 2002. Federal tax in Canada depends on the amount of income a person earns per year. For example, if the annual income of a person is $ 7.500-42.700, then they need to pay 15%. If the salary ranges from $42.700 to $85.400, then the rate rises to 22%. If the income is $85.400-132.400, the rate is 26%. If the amount of annual income is more than $ 132.400, the rate is 29%.
The above rates are valid for individuals. This means that when filling out a personal tax return in Canada, any person receiving a profit (resident or non-resident) is obliged to indicate the appropriate amount of income, calculate the tax and pay it.
Different rates apply to legal entities. As a rule, the rate is 30%. However, companies using credit funds pay about 13-22%. In order not to get confused, it is recommended to contact tax companies in Canada that serve both individuals and legal entities.
A tax return accountant will take care of everything, and you will not have to worry about the consequences of incorrectly completed and submitted financial statements. And this is very important because the slightest inaccuracy is punishable by a fine of 100 CAD. Taxation services, in turn, cost about 25 CAD and allow you to sleep peacefully, which is why more and more Canadians are turning to professional help.