Attractive tax strategies enable you to optimize your incorporation. Here are some factors to consider.
Flexible compensation options
You can opt to pay yourself a salary, dividends or non-registered investments. A combination of these forms of compensation can cover your family expenses and prove advantageous.
Individual pension plan (IPP)
Type of defined benefit pension plan where the contributions are paid by the employer and are tax deductible for the company.
Investments made by the company generate income that is taxable according to the type of income: Canadian dividends, capital gains, etc. Keeping after-tax income in the company can be beneficial because of the advantageous tax treatment of investments.
Capital gains deduction
When you sell the shares of your company, you may be entitled to a capital gains exemption under certain conditions. In 2020, the exemption is $866,912.
Our Advisors can assist you with your decisions and help you choose the best tax strategies to optimize your incorporation.