Taxation Info-Guide

General Business Taxation

Goods and Services Tax and Harmonized Sales Tax (GST / HST) - Canada Revenue Agency

The Goods and Services Tax and Harmonized Sales (GST/HST) is a tax that applies to the supply of most goods and services in Canada. Three provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador, referred to as the participating provinces) harmonized their provincial sales tax with the GST to create the harmonized sales tax (HST). The HST applies to the same base of taxable goods and services as the GST.

You must register for and charge HST if:

you sell or provide taxable goods or services in your commercial activities in Canada and your total taxable revenues were more than $30,000 in the immediately preceding four consecutive calendar quarters, or exceed $30,000 in a single calendar quarter.
you drive a taxicab or limousine.

If your sales do not exceed $30,000 after 4 consecutive quarters, you do not need to register, nor charge HST. There may be instances when registering voluntarily (or before the $30,000 threshold) can give you certain advantages, such as the right to claim the HST you pay on your business’s start-up expenses from the time you register. For more information, contact your Canada Revenue Agency (CRA) Office (see below) or obtain a copy of Canada Revenue Agency’s publications:

General Information for GST/HST Registrants:
http://www.cra.gc.ca/E/pub/gp/rc4022/

For more information, please contact a Tax Services Office, see below:

Income Tax Returns: T2 Corporation Income Tax Return and the T2 Short Return

All corporations, except registered charities, have to file a corporation income tax (T2) return every tax year even if there is no tax payable. This includes:

non-profit organizations
tax-exempt corporations
inactive corporations

There are two different returns:

The T2 Corporation Income Tax Return is an eight-page return that serves as a federal and provincial/ territorial corporation income tax return. Exceptions: corporations located in Quebec, Ontario or Alberta. If the corporation is located in one of these provinces, it has to file a separate provincial corporate return.

The T2 Short is a two-page return designed for small, non-taxable corporations with a gross annual income of $500 000 or less.

Visit the web site:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/menu-eng.html

For more information, please contact a Tax Services Office, see below

Income Tax - Payroll Deductions

As an employer, trustee, or payer, you are responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax from remuneration or other types of income you pay, remitting them to us and reporting them on the applicable slips.

As an employer, you are holding these deductions in trust for your employees; therefore, you are expected to keep these funds separate from the operating funds of your business.

Visit the web site:
http://www.cra.gc.ca/payroll

For more information, please contact a Tax Services Office, see below:

Guide for Canadian Small Businesses

The Canada Revenue Agency (CRA) created this publication to help entrepreneurs have a better understanding of taxation and small business. The information in the guide can help you decide how to plan your business to best comply with the tax obligations and determine which entitlements you might be eligible to receive.

Visit the web site:
http://www.cra-arc.gc.ca/E/pub/tg/rc4070/README.html

For more information, please contact a Tax Services Office, see below:

Corporation Internet Filing

The Corporation Internet Filing initiative provides the client with an easy-to-use, convenient, secure, and confidential option for filing your corporation income tax return. As a result, the CRA will benefit from reduced processing costs. Corporation Internet Filing streamlines the tax-filing process, provides the filer with an immediate confirmation of receipt and results in faster refunds.

Visit the web site:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/crpnt/bt-eng.html

For more information, please contact a Tax Services Office, see below:

Online Requests for Business

The Online Requests for Business service allows Business clients to electronically ask for certain financial actions to be processed on an account. It lets business clients inform the Canada Revenue Agency via the Internet of an action or review they want them to do, request items they require or inform them of communication items they no longer wish to receive.

Visit the web site:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/rqsts/menu-eng.html

For more information please contact:
Halifax Tax Services Office
Canada Revenue Agency
Ralston Building
1557 Hollis Street
P.O. Box 638
Halifax, Nova Scotia B3J 2T5
Fax: 902-426-7170
Toll-free (information): 1-800-959-5525 (Business enquiries and registrations)
Toll-free (publications): 1-800-959-2221 (Forms and publications)
Web site: http://www.cra.gc.ca/menu-e.html

Sydney Tax Services Office
Canada Revenue Agency
47 Dorchester Street
P.O. Box 1300
Sydney, Nova Scotia BIP 6K3
Fax: 902-564-3095
Toll-free (information): 1-800-959-5525 (Business enquiries and registrations)
Toll-free (publications): 1-800-959-2221 (Forms and publications)
Web site: http://www.cra.gc.ca/menu-e.html

Municipal Taxation

Business Occupancy Assessment Tax

As of April 1, 2008, responsibility for property assessments has been transferred to the Property Valuation Services Corporation (PVSC), a not for profit organization owned and managed by Nova Scotia’s municipalities.

According to the Assessment Act, every person occupying or using any commercial property shall be assessed for a sum to be called business occupancy assessment. There are some exceptions which are outlined in the Assessment Act.

When starting a business you must provide the following information to the PVSC:

the type and name of the business
mailing address
location of the business
square footage occupied
rent paid (where applicable)
start date

The assessed business occupancy owner is required to notify their local PVSC office within 7 days of any opening and within 30 days of a closing or change in space occupied.

As a result of requests by Nova Scotia municipalities and representatives from the business sector, the Province amended the Municipal Government Act, (Bill No. 191), to allow for the phasing out of business occupancy tax over several years.

There are 3 categories of business occupancy assessments: 25 %, 50%, and 75%. The category your business is in determines when you will stop receiving business occupancy assessments and stop paying business occupancy tax.

Any tenant or property owner who occupies or uses commercial space in a category not yet eliminated receives a Business Occupancy Assessment.

For more information, please contact:
Property Valuation Services Corporation
Suite 200
Park Place ll
238A Brownlow Avenue
Dartmouth, Nova Scotia B3B 2B4
Telephone: 902-720-7872
Fax: 902-720-7873
Toll-free (information): 1-800-667-5727
Web site: http://www.pvsc.ca/

To view the Assessment Act, visit:
http://www.gov.ns.ca/legislature/legc/statutes/assess.htm

Seasonal Tourist Business Program

A Seasonal Tourist Business, as defined in Nova Scotia’s Assessment Act, is a business that is closed for at least four months in the taxation year and is:

1. a restaurant
2. a roofed accommodation, or
3. a camping establishment.

In order to be eligible for the reduced commercial tax rate, property owners must apply and demonstrate that the seasonally operated tourist business meets all of the following criteria:

It is open during some part of the taxation year but closed for at least four months in the same taxation year (NOTE: the taxation year is from April 1 to March 31);
It is occupied or used for the sole purpose of:
- A restaurant (not including any part of premises licensed under the Liquor Control Act as a cabaret, tavern, beverage room or lounge)*;
- A roofed accommodation (licensed under the Tourist Accommodations Act, but not including any part of premises licensed under the Liquor Control Act as a cabaret, tavern, beverage room or lounge)*;
- A camping establishment (licensed under the Tourist Accommodations Act, but not including any part of premises licensed under the Liquor Control Act as a cabaret, tavern, beverage room or lounge)*.
For example, if a business is operated as a restaurant during the day and converts to a lounge or nightclub at anytime, it will not be eligible.

If the business is not operated by the assessed property owner, it must be operated by their father, mother, brother, sister, son, daughter, grandson, granddaughter or spouse.

The assessed owner, or the assessed owner’s relative as listed above, must also manage the business and own at least 50% of the seasonal tourist business or, in the case of a corporation, hold at least 50% of the voting shares.

If the property on which you operate your seasonal tourist business contains more than one business, the property shall be identified by the kind of business that is that property’s main business.

Visit the Web site: Seasonal Tourist Program

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Tax Credits

Nova Scotia New Small Business Tax Deduction

This deduction effectively eliminates the Nova Scotia corporate income tax for the first 3 taxation years of a new small business after incorporation. The corporation must apply each year to the Nova Scotia Minister of Finance for a Nova Scotia Tax Deduction Eligibility Certificate.

For more information, please contact:
Nova Scotia Department of Finance
1723 Hollis St.
P.O. Box 187
Halifax, Nova Scotia B3J 1V9
Canada
Telephone: 902-424-5554
Fax: 902-424-0635

See the document: New Small Business Tax Deduction
Visit the web site: New Small Busiess Tax Deduction Regulations

Nova Scotia Equity Tax Credit

The Equity Tax Credit, or ETC, is designed to assist Nova Scotia small businesses, co-operatives, and community economic development (CED) initiatives in obtaining equity financing by offering a personal income tax credit to individuals investing in eligible businesses. Equity financing is an alternative to other forms of financing such as debt and traditional government assistance. The credit is not a grant nor is it considered to be a tax shelter.

For more information, please contact:
Nova Scotia Department of Finance
1723 Hollis St.
P.O. Box 187
Halifax, Nova Scotia B3J 1V9
Canada
Telephone: 902-424-5554
Fax: 902-424-0635

See the document: Equity Tax Credit
Visit the web site: NS Equity Tax Credit

Nova Scotia Research and Development Tax Credit

An investment tax credit of 20% to 35% for scientific research is available. This rate applies to the current and capital scientific research expenditures incurred in a taxation year. Nova Scotia’s R&D corporate income tax credit is equal to 15% of expenditures eligible for credit under the Federal Income Tax Act and is offered against the provincial part of the income tax payable. Information on eligible expenditures, eligible projects, claiming the credit, and appropriate forms can be obtained from your Canada Revenue Agency Taxation District Office.

For more information, please contact:
Halifax Tax Services Office
Canada Revenue Agency
Ralston Building
1557 Hollis Street
P.O. Box 638
Halifax, Nova Scotia B3J 2T5
Fax: 902-426-7170
Toll-free (information): 1-800-959-5525 (Business enquiries and registrations)
Toll-free (publications): 1-800-959-2221 (Forms and publications)
Web site: http://www.cra.gc.ca/menu-e.html

Visit the web site: Nova Scotia Research and Development Tax Credit

Nova Scotia Labour-Sponsored Venture Capital Tax Credit

This tax credit is designed to assist Nova Scotia small and medium-sized businesses and co-operatives in obtaining equity financing by offering a personal income tax credit to individuals investing in registered labour-sponsored venture-capital corporations, or LSVCCs.

The Province does not guarantee any investment. The investor is at risk for his or her investment.

For more information, please contact:
Nova Scotia Department of Finance
1723 Hollis St.
P.O. Box 187
Halifax, Nova Scotia B3J 1V9
Canada
Telephone: 902-424-5554
Fax: 902-424-0635

See the document: Labour-Sponsored Venture-Capital Tax Credits - LSVCC
Visit the web site: Nova Scotia Labour-Sponsored Venture-Capital Tax Credit

Nova Scotia Film Tax Credit

The Film Tax Credit is a refundable tax credit for costs directly related to the production of films in Nova Scotia.

Eligible corporations will receive a credit equal to the lesser of:

35 percent of eligible Nova Scotia labour expenditures; or
17.5 percent of total expenditures made in Nova Scotia

A 5 percent geographic area bonus on labour expenditures (2.5 per cent bonus on total expenditures) is available for films shot outside of the Halifax Regional Municipality. As well, a 5 percent frequent filming bonus is available to companies who have produced 3 films in a 24 month period.

For more information, please contact:
Financial Director
Film Nova Scotia
1724 Granville Street
Halifax, Nova Scotia B3J 1X5
Telephone: 902-424-7177
Fax: 902-424-0617
E-mail: novascotia.film@ns.sympatico.ca

See the document: Nova Scotia Film Industry Tax Credit
Visit the web site: http://film.ns.ca/content/tax_credit

Digital Media Tax Credit

The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia.

Eligible corporations will receive a credit equal to the lesser of:

35 percent of eligible Nova Scotia labour expenditures; or
17.5 percent of total expenditures made in Nova Scotia

A 5 percent geographic area bonus on labour expenditures (2.5 per cent bonus on total expenditures) is available for products developed outside the Halifax Regional Municipality.

For more information, please contact:
Nova Scotia Department of Finance
1723 Hollis St.
P.O. Box 187
Halifax, Nova Scotia B3J 1V9
Canada
Telephone: 902-424-5554
Fax: 902-424-0635

See the document: Digital Media Tax Credit
Visit the Web site: Digital Media Tax Credit

Canadian Film or Video Production Tax Credit

The Canadian Film or Video Production Tax Credit is a fully refundable tax credit for films and videos produced and owned by Canadian corporations. The credit can provide assistance of up to 12 percent of the cost of an eligible production.

For more information, please contact:
Canadian Audio-Visual Certification Office (CAVCO)
Canadian Heritage
4th Floor
100 Sparks Street
Ottawa, Ontario K1A 0M5
Telephone: 613-946-7602
Toll-free (information): 1-888-433-2200
Web site: http://www.canadianheritage.gc.ca/cavco

See the document: Canadian Film or Video Production Tax Credit
Visit the web site: http://www.pch.gc.ca/pgm/bcpac-cavco/pgm/cisp-pstc/pubs/pstc/101-eng.cfm

Scientific Research and Experimental Development Tax Incentive Program

The SR&ED Tax Incentive Program was established by the Government of Canada to encourage Canadian businesses of all sizes to conduct research and development that will lead to new or improved technologically advanced products or processes. The program gives claimants cash refunds and / or tax credits for their expenditures on eligible research and development work done in Canada. Businesses engaged in developing or advancing new technologies or processes may be eligible for this program.

Taxpayers have to complete and submit these forms with the tax return for the year: Form T661, Claim for Scientific Research and Experimental Development (SR&ED) Expenditures Carried on in Canada; Form T2038, Investment Tax Credit.

See the document: Scientific Research and Experimental Development (SR&ED) Program

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Telephone Numbers

Please see the following document for a list of toll-free Canada Revenue Agency telephone mumbers: Telephone numbers for the Canada Revenue Agency

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