GGFL Tax Facts for Ontario Residents  

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MARGINAL TAX RATE
2023 Taxable Income Salary Public Company
Dividends(1)(2)
38% Gross up
Private Company
Dividends(2)
15% Gross up
$1 – $14,999 0.00% 0.00% 0.00%
$15,000 – $49,231 20.05% 0.00% 9.24%
$49,232 – $53,359 24.15% 0.00% 13.95%
$53,360 – $86,698 29.65% 6.39% 20.28%
$86,699 – $98,463 31.48% 8.92% 22.38%
$98,464 – $102,135 33.89% 12.24% 25.16%
$102,136 – $106,717 37.91% 17.79% 29.78%
$106,718 – $150,000 43.41% 25.38% 36.10%
$150,001 – $165,430 44.97% 27.53% 37.90%
$165,431 – $220,000 48.29% 32.11% 41.72%
$220,001 – $235,675 49.85% 34.26% 43.51%
Greater than $235,675 53.53% 39.34% 47.74%

 

(1) Includes dividends from CCPCs from income in excess of $500,000 business limit
(2) Marginal rates are based on cash dividends received, not grossed-up taxable amount

CCPC Active Income 2023 2022
<$500,000 12.20% 12.20%
>$500,001 26.50% 26.50%
CCPC Investment Income
Interest(3) 50.17% 50.17%
Refundable Tax 30.67% 30.67%
Capital Gains 25.08% 25.08%
Refundable Tax 15.34% 15.34%

 

(3) A portion of these taxes are refundable on payment of taxable dividends at different rates, depending on certain facts. Speak to your GGFL advisor for more details.

2023 2022
OAS Benefit $8,226 $7,930
15% Clawback for income greater than; $86,912 $81,761
No OAS benefit for income greater than; $141,752 $134,626
Lifetime Contribution Annual Limit
$88,000 2023 – $6,500 2022 – $6,000
2023 2022
RRSP Deduction Limit $30,780 $29,210
Income Required to Maximize RRSP $171,000 $162,278
Deadline: 60-days after year end Mar 1 Mar 1
2023 2022
CPP Limit $3,754.45 $3,499.80
Maximum Pensionable Earnings $66,600 $64,900
2023 2022
Employee $1,002.45 $852.74
Employer $1,403.43 $1,333.84
Maximum Insurable Earnings $61,500 $60,300
2023 2022
Payroll <$5 Million $1,000,000 $1,000,000
2023 2022
Q1 TBD 1%
Q2 TBD 1%
Q3 TBD 1%
Q4 TBD 1%

 

(4) These rates are for shareholder loans; for refunds add 2%
for overdue balances add 4%

2023 2022
Lifetime Exemption $971,190 $913,630
2023 2022
Lifetime Exemption $1,000,000 $1,000,000
      Claim Description 2023 2022
Tax-exempt car reimbursements:

  • First  5,000 km
  • After 5,000 km
 

$0.61/km

$0.55/km

$0.61/km

$0.55/km

CCA threshold – Class 10.1 $34,000 $34,000
CCA threshold – Class 54 zero-emission $39,000 $39,000
Interest expense limit $300/month $300/month
Leasing limit per month $900+txs $900+txs
Operating cost benefit (standby charge) $0.29/km $0.29/km
Due Date(6)(7)
 Corporate Tax Returns (T2) 6 months after year end
Corporate final tax payment for the current fiscal year:

  • For CCPC and its associated corporations with total taxable income below business limit
  • For all other companies, such as holding companies
3 months after year end
Corporate Instalment Due Dates

  • Monthly
  • Quarterly, for eligible CCPCs December year end
2 months after year end
T4 Return-Summary of Renumeration Paid Last day in February
T5 Return-Return of Investment Income (interest+dividends) Last day in February
Trust Returns (T3) 90 days after year end
Personal Tax Returns (T1)

  • Individual
  • Individual with self-employment income
  • Taxes Payable
April 30

June 15

April 30

Instalment Due Dates: Personal Tax and Trust & Estates Q1(March 15); (June 15);

Q3 (September 15); Q4(December 15)

HST Return – Annual Filer 3 months after year end

HST Return – Quarterly Filer

3 months after year end

1 month after end of quarter

HST Instalments Due Dates: Annual Filer December year end Q1 (April 30) ; Q2 (July 31) ; Q3 (October 31);

Q4 (January 31 of the following year)

EHT Instalments (Payroll > $1.2M, tax years beginning after Dec. 31, 2020) Monthly
EHT Return March 15 of the following year

 

(6) If a Due Date falls on a Saturday, Sunday or public holiday, the due date will be the next business day.
(7) Due Dates have not been updated to reflect changes due to Covid-19. Please go to canada.ca/en/services/taxes.html for more information.

The information provided in this publication is intended for general purposes only. Care has been taken care to ensure the information herein is accurate; however, no representation is made as to the accuracy thereof. The information should not be relied upon to replace specific professional advice.

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