How To Ensure Rental Income Within Your Corporation is Active Business Income
How To Ensure Rental Income Within Your Corporation is Active Business Income May 5, 2023 Tax Question: How do you ensure your rental income within
Home » News » Canadian Tax FAQs » What is an Apprentice Tax Credits?
Tax Question:
What is an Apprentice Tax Credit?
Facts:
There are two Apprentice Tax credits that a corporation can apply for:
The purpose of the credits is to encourage employers to hire new apprentices, thereby creating jobs and addressing an anticipated skills shortage.
In 2006 the Federal Budget introduced the Apprenticeship Job Creation Tax Credit. An eligible apprenticeship is someone who is working in a “Red Seal” trade for the first two years of their apprenticeship contract. The credit provides a non-refundable tax credit equal to the lower of $2,000 or 10% of the apprentices’ salaries or wages.
A corporation must claim the credit within 18 months of the corporation’s year-end. A similar Training Tax Credit was introduced by the BC government effective January 1, 2007. Again the apprenticeship must be an eligible one. However, the trade is not restricted to Red Seal trades. An eligible training program is one administered by the BC Industry Training Authority. There are three main elements to the BC provincial credit:
The credit must be claimed by the corporation within 36 months of the corporation’s year-end.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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