If you’re a U.S. citizen who owns a Canadian corporation, you gotta know about your tax duties in both countries. Taxes can get confusing when you deal with two systems at once. You need to keep track of the rules in the U.S. and Canada so you don’t mess up.
When you start a company in Canada, taxes come from two places: the federal government and the province where you set up shop. Both charge different rates.
Overview of Federal and Provincial Corporate Tax Rates
The Canadian federal corporate tax rate is 15%. On top of that, each province charges its own tax. Here are some examples:
Specialized guidance for professionals in Canada on a work permit.
Trusted and government-recognized for accurate, compliant filings.
Expert support for U.S.–Canada tax treaty and compliance.
Clear pricing starting at $35 with no hidden charges.
Covers government filing fees, name search, and CPA-guided setup.
Includes annual return filing, tax consultation, and corporate compliance support.
Annual filing and corporate tax assistance to keep your business on track.
Brampton office address service with mail handling & compliance support.
Start your federal corporation for just $35. We keep prices clear and affordable for entrepreneurs across Canada.
Incorporate quickly with our expedited same-day filing service, so you can start doing business right away.
Every incorporation includes a FREE consultation with a licensed CPA to guide you through the process.
Federal incorporation lets you operate under one legal name across all 13 provinces and territories.
Protect your personal assets with a corporation that separates business liabilities from your own.
From annual filings to corporate tax bundles, our CPA team ensures your business always stays compliant.
Non-resident Canadian corporations must file T2 corporate tax returns within six months after their fiscal year ends to avoid penalties.
If your sales in Canada exceed $30,000 annually, you must register for GST/HST. This lets you claim input tax credits and comply with CRA rules.
Yes, using the Canada-U.S. tax treaty, foreign tax credits, and proper dividend planning helps reduce or eliminate double taxation.
A corporation limits personal liability and offers lower corporate tax rates. Proprietorships have simpler taxes but expose owners to full personal risk.
Annual compliance bundles offer filing assistance, CRA communication management, and corporate annual return support to keep businesses compliant.
Corporate tax rates vary by province. Choosing a province like Alberta with lower rates can reduce your overall tax burden.
Failing to submit forms like 5471 or FBAR timely can lead to hefty fines and increased IRS scrutiny on your foreign income.
It reduces withholding tax rates on dividends from 25% to 15% or less, saving U.S. shareholders money when receiving dividends from Canada.
Gondaliya CPA
Toronto (ON)
168 Simcoe St Unit 1118,
Toronto, ON M5H 4C9,
Canada
Mississauga (ON)
5373 Bullrush Dr,
Mississauga, ON, Canada
Brampton (ON)
4 Starhill Crescent,
Brampton, ON L6R 2P9,
Canada
Scarborough (ON) Canada
24 Clementine Square,
Scarborough, ON M1G 2V7,
Canada
Vaughan (ON)
19 Cabinet Crescent,
Woodbridge, ON L4L 6H9,
Canada
Oshawa (ON)
210 Durham St, Oshawa,
ON L1J 5R3,
Canada
Ottawa (ON)
2090 Neepawa Ave a314,
Ottawa, ON K2A 3L6,
Canada
Etobicoke (ON)
60 Stevenson Rd #1601,
Etobicoke, ON M9V 2B4,
Canada
Hamilton (ON)
70 Starling Dr, Hamilton,
ON L9A 0C5, Canada
Guelph (ON)
1155 Gordon St, Guelph,
ON N1L 1S8, Canada
North York (ON)
150 Graydon Hall Dr #912,
North York, ON M3A 3B2,
Canada
Windsor (ON) Canada
4387 Guppy Ct, Windsor,
ON N9G 2N8,
Canada
Toronto (ON)
168 Simcoe St Unit 1118,
Toronto, ON M5H 4C9,
Canada
Mississauga (ON)
5373 Bullrush Dr,
Mississauga, ON, Canada
Brampton (ON)
4 Starhill Crescent,
Brampton, ON L6R 2P9,
Canada
Scarborough (ON) Canada
24 Clementine Square,
Scarborough, ON M1G 2V7,
Canada
Vaughan (ON)
19 Cabinet Crescent,
Woodbridge, ON L4L 6H9,
Canada
Oshawa (ON)
210 Durham St, Oshawa,
ON L1J 5R3,
Canada
Ottawa (ON)
2090 Neepawa Ave a314,
Ottawa, ON K2A 3L6,
Canada
Etobicoke (ON)
60 Stevenson Rd #1601,
Etobicoke, ON M9V 2B4,
Canada
Hamilton (ON)
70 Starling Dr, Hamilton,
ON L9A 0C5, Canada
Guelph (ON)
1155 Gordon St, Guelph,
ON N1L 1S8, Canada
North York (ON)
150 Graydon Hall Dr #912,
North York, ON M3A 3B2,
Canada
Windsor (ON) Canada
4387 Guppy Ct, Windsor,
ON N9G 2N8,
Canada