The money has to come from somewhere first before you can dip into it. It is from your company's net profit after corporate tax.
2841999(四友)
How much is the corporate tax? Depends. It can be from 15% for qualified small business to 25% for inactive business. To the extend, the money you take home as dividend is NOT tax free. You've already paid tax. There is no loop holes.
(#12367615@0) Last Updated: 2019-10-3 This post has been archived. It cannot be replied.
The money has to come from somewhere first before you can dip into it. It is from your company's net profit after corporate tax.
-2841999(四友);
2019-10-3{234}(#12367615@0)
How much is the corporate tax? Depends. It can be from 15% for qualified small business to 25% for inactive business. To the extend, the money you take home as dividend is NOT tax free. You've already paid tax. There is no loop holes.
This is actually for my mom...
-saturday2k(saturday2k);
2019-10-3{413}(#12368711@0)
here's the situation.
Im running a side business(besides my full time job), and Im incorporated with my Mom who is a senior(we're all 50% directors). She doesn't have income in Canada. Her pension from China is less than $4000/year.
I'm not going to take any money from this incorporate, so I was thinking after all the business expenses if she could take out $50k a year as a dividend without having to pay tax.
i think you have to pay dividend according to your shares, so you will have to pay yourself too
-userid2018(RoliaCleanWithFilter);
2019-10-3(#12368791@0)
Any other workarounds? Im already at a high margin rate from my fulltime job.
-saturday2k(saturday2k);
2019-10-4(#12369252@0)
谁都知道,红利是公司的税后收入,一个家庭可以通过亲属之间的随意分配达到整个家庭的税率最优化。这种家庭税务优化的做法在过去是允许的。从2018年开始,税务局改规则了,对于各种 income split 的猫腻开始严加看管。原则上,夫妻之间平分,退休金的平分还相对宽松一点。家庭的其他成员之间,非退休金收入平分会从严。你真的需要找会计师解读新税法。第一年解读了,以后你就懂了。
when you set up your company,
-ahh134(LoveBarbie);
2019-10-6{338}(#12373064@0)
you can have different class of share holder e.g. Class A, Class B etc. in the same class (class A), you have to pay share holders same dividends amount, but for different class, you don't have to. therefore you can pay share holder in class B $50K dividends, but $0 for class A. This is what my account told me when I set up my company.