Gray & Associates Newswire
 
 

 

Canada Pension Plan Rates

Year20142013201220112010200920082007200620052004
maximum pensionable earnings (YMPE)$52,500$51,100$50,100$48,300$47,200$46,300$44,900$43,700$42,100$41,100$40,500
basic exemption$3,500$3,500$3,500$3,500$3,500$3,500$3,500$3,500$3,500$3,500$3,500
rate4.95%4.95%4.95%4.95%4.95%4.95%4.95%4.95%4.95%4.95%4.95%
employee/employer maximum$2,425.50$2,356.20$2,306.70$2,217.60$2,163.15$2,118.60$2,049.30$1,989.90$1,910.70$1,861.20$1,831.50
self-employed maximum$4,851.00$4,712.40$4,613.40$4,435.20$4,326.30$4,237.20$4,098.60$3,979.80$3,821.40$3,722.40$3,663.00

 Employment Insurance Premium Rates  
Year20142013201220112010200920082007200620052004
maximum insurable earnings$48,600$47,400$45,900$44,200$43,200$42,300$41,100$40,000$39,000$39,000$39,000
basic exemptionnilnilnilnilnilnilnilnilnilnilnil
employee rate1.88%1.88%1.83%1.78%1.73%1.73%1.73%1.80%1.87%1.95%1.98%
employee maximum$913.68$891.12$839.97$786.76$747.36$731.79$711.03$720.00$729.30$760.50$772.20
employer rate2.632%2.632%2.562%2.492%2.422%2.422%2.422%2.52%2.618%2.73%2.772%
employer maximum$1,279.15$1,247.57$1,175.96$1,101.46$1,046.30$1,024.51$995.44$1,008.00$1,021.02$1,064.70$1,081.08
self-employed rate1.88%1.88%1.83%1.78%1.73%n/an/an/an/an/an/a
EI clawback threshold (1)$60,750$59,250$57,375$55,250$54,000$52,875$51,375$50,000$48,750$48,750$48,750

Automobile Deduction Limits and Expense Benefit Rates for Business

Automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit are determined as follows:

  • The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes is $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2003. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
  • The limit on deductible leasing costs is $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2003. This limit, which ensures that the level of deductions for leased and purchased vehicles is consistent, is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
  • The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2003. This limit reflects the reasonable cost of financing a vehicle for business purposes.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees are as follows:
Rates per km2013/201420122008-20112007/200620052004/2003
All provinces
-first 5,000 km$0.54$0.53$0.52$0.50$0.45$0.42
-over 5,000 km$0.48$0.47$0.46$0.44$0.39$0.36
Yukon/Northwest Territories, and Nunavut
-first 5,000 km$0.58$0.57$0.56$0.54$0.49$0.46
-over 5,000 km$0.52$0.51$0.50$0.48$0.43$0.40
  • The Government reviews these rates and limits annually and announces any planned changes prior to the end of the calendar year. This practice ensures that businesses are aware of the new rates before the beginning of the year in which they apply.


Prescribed Interest Rates

The Canada Revenue Agency charges interest on late or deficient taxes, payroll remittances, excise and GST payments.

Ensure you make your corporate income tax and personal income tax instalments prior to their due dates.  Interest charged by the CCRA on late payments is not deductible on your tax return.

For update date interest rate charges: Canada Revenue Agency prescribed interest rates

 

GST/HST Registration

In general, you must register for a GST/HST number if your business meets one of the following requirements:

  • your annual worldwide GST/HST taxable revenues, including the taxable revenues of all of your associated companies, will be more than $30,000;
  • you operate a taxi or limousine;
  • you are a non-resident who solicits orders in Canada for goods sent by mail or courier and your annual worldwide GST-taxable sales will be more than $30,000; or,
  • you are a non-resident and you charge admission directly to audiences at activities or events in Canada

If your goods and services are GST/HST taxable, but your sales are less than $30,000, you may choose to register voluntarily.  This would be beneficial during the start-up period of your business, where it is possible that your input tax credits on purchases of capital assets and other front-loaded operating expenses will exceed the GST collected on sales.


B.C. (de-)Harmonized Sales Tax and TDP

British Columbia harmonized its provincial sales tax (PST) with the Federal goods and services tax (GST) effective July 1, 2010.  The government later de-harmonized its PST effective April 1, 2013.

Effective April 1, the provincial PST rate in BC is 7%, which, when combined with the federal 5% GST will result in a total sales tax of 12% on most goods and services.

Private sales of vehicles, boats airplanes, RV's and trailers will still be subject to the BC "Tax on Designated Property", or "TDP", such that the sales tax applied to private sales or transfers will be 12%.

In general, businesses need to determine the destination of the goods or services being sold or rendered.  For example, if a sale of goods is made from BC to an Alberta and the customer and the goods are delivered to an Alberta address by a common carrier, the B.C. vendor would charge the 5 percent GST on the selling price and no BC PST.  Likewise, if delivery is being made to a customer in Ontario, the 13 percent Ontario HST would apply to the selling price. 

For more complex sales transactions, it may not be possible to determine which GST or HST rate to apply without further analysis.  Contact GRAY& ASSOCIATES for assistance in this regard.

 

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