4 December 2023
With the end of 2023 just around the corner, it’s the perfect time to think about planning your finances to maximize your financial and personal opportunities and goals. We’re happy to share a few simple tips, tailored to your entrepreneurial reality, to make the most of this crucial period.
Crédit d’Impôt à l’Investissement et à l’Innovation (C3i): Invest no later than December 31, 2023, to benefit from doubled rates on assets acquired, thanks to the C3i in Quebec. The C3i is a refundable tax credit available to eligible corporations that can, under certain conditions, claim the investment and innovation tax credit for specified expenses incurred in the current or previous year for the acquisition of a specified property.1
1Source: Revenu Québec
Repayment of Canadian Business Emergency Account (CBEEA) loans: The deadline for repayment of Canadian Business Emergency Account (CBEEA) loans has been extended by an additional year for the repayment of a term loan, and greater flexibility is available for loan holders who wish to take advantage of a partial write-off of up to 33%.2
2Source: Government of Canada
Repay Canadian Business Emergency Account (CBEU) loans before January 18, 2024 (originally December 31, 2023).
Compensation for executive shareholders : Consider how best to structure your compensation as an executive shareholder. It may be optimal to combine salaries, bonuses and dividends. It’s not just the tax rate that needs to be taken into account, but other factors as well. To get the best advice, enlist the help of an advisor!3
3Source: Raymond Chabot Grand Thorton
Declaring a bonus: Declaring a bonus at the end of the year offers tax advantages. Preferable to salary, it allows the cash to be deferred until after the end of the company’s fiscal year, with possible deferral of taxation for the individual. This declaration reduces the company’s income, meeting the criteria for the small business deduction (SBD). The bonus, which is deductible from the company’s income in the same way as wages, contrasts with the dividend. What’s more, cashing in a bonus, like cashing in a salary, allows you to contribute to your RRSP.4
4Source: Raymond Chabot Grand Thorton
Need financial guidance? Contact us today.
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