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Hello my name is Vinesh Kumar and i have two questions.
1) What is tax% on resident and non resident in Canada if they form a new company?
2) What if one resident and non resident form a new company in partnership what will be the tax% on that.
I hope you answer that soon. Thankyou.
Hi Vinesh,
The corporate tax rates on active business income are as follows:
1.12% - if the corporation is not controlled by non-residents of Canada. To meet this requirement, at least 50% of the corporation's voting shares should be owned by residents of Canada. Note that the 12% rate applies to net active business income up to $500,000, and thereafter the rate is increased to 26%.
2.26% - if the corporation is controlled by non-residents of Canada.