Talk with us: 647-265-3622
Talk with us: 647-265-3622
Running a business requires dedication, planning, and informed decision-making. Yet, many Canadian business owners unknowingly pay more in taxes each year simply because they overlook eligible deductions. At ProFuture Tax Academy, we believe smart tax planning helps you retain more of your hard-earned money and reinvest it to grow your business.
Here are ten valuable corporate tax deductions that can help reduce your tax bill:
1. Home Office Expenses
If you use part of your home for business purposes, you can deduct a fair portion of your expenses, including:
Helpful Tip: Calculate your office’s percentage of total home space (for example, 15%) to determine your eligible deduction.
2. Business Vehicle Expenses
Business-use portions of vehicle expenses such as fuel, insurance, and maintenance may be deductible. Keeping detailed mileage and expense records strengthens your claim.
3. Meals and Entertainment
Up to 50% of meal expenses related to client meetings or employee functions can be deducted. Additionally, certain staff events or company celebrations may be fully deductible.
4. Professional Fees
Professional services are considered deductible business expenses. This includes costs for accountants, lawyers, bank fees, and industry association memberships.
5. Equipment and Technology (Capital Cost Allowance)
Business equipment, computers, and technology purchases are typically deducted through the Capital Cost Allowance (CCA). Some innovations, like zero-emission vehicles, qualify for enhanced first-year write-offs of up to 100%.
6. Salaries and Bonuses
Wages, benefits, and bonuses paid to employees are deductible. Issuing year-end bonuses before your business’s fiscal year-end can also help manage taxable income efficiently.
7. Marketing and Advertising
Marketing is essential to business growth—and it’s deductible. Eligible costs include:
8. Insurance Premiums
Premiums paid for business-related insurance, such as liability or property insurance, can be deducted as a regular business expense.
9. Office Supplies and Software
Common business materials and digital tools—such as stationery, printers, or accounting software—are fully deductible.
10. Training and Professional Development
You can claim full deductions on training that develops your or your employees’ business skills. For practical workshops on taxation, accounting, or compliance, visit ProFuture Tax Academy.
Plan and Maximize Your Benefits
Good tax planning doesn’t happen at year-end—it’s a continuous process. By maintaining accurate records and consulting trained professionals, you can make informed financial decisions and keep your business financially strong.