Everything a Restaurant Owner Needs to Know About Taxes in Canada in 2022
May 10, 2022 | Written by: Sohail Afzal
As a restaurant owner in Canada, it’s important to stay up-to-date on the latest changes in taxes. In 2022, several new taxes will be levied, and changes to existing tax laws. If you’re not sure how these changes will affect your business, it’s best to consult with an accounting firm or tax expert. They can help you save money on your taxes and ensure that you’re compliant with all the latest regulations.
Key Changes in Tax Laws for a Restaurant Owner
Here are some of the key changes that you need to be aware of:
- The carbon tax will increase by $15 per tonne, bringing the total cost to $30 per tonne. This tax is paid by businesses that produce greenhouse gas emissions.
- The corporate income tax rate will increase from 15% to 25%.
- The small business deduction limit will decrease from $500,000 to $300,000.
- GST/HST on food and beverage sales will increase from five percent to nine percent.
This list is not exhaustive, so be sure to consult with a professional to learn about all the changes that may affect your business. With their help, you can make sure you’re taking advantage of all the tax breaks and deductions available to you.
How Can a Restaurant Owner Save on Taxes?
There are a few ways restaurant owners can save on taxes in Canada. One way is to take advantage of the small business deduction. This deduction allows businesses with annual revenue of less than $500,000 to claim a lower tax rate. Another way to save is by claiming expenses such as food and beverage costs, rent, utilities, and employee salaries. You can deduct these expenses from your taxable income, which will lower your overall tax bill.
If you’re not sure how to take advantage of these deductions, it’s best to consult with a professional. They can help you maximize your deductions and minimize your tax liability.
Why is it Important For Restaurant Owners to Work With an Accounting Firm?
There are many reasons why it’s beneficial for restaurant owners to work with an accounting firm. First and foremost, they can help you save money on your taxes. They know all the ins and outs of the tax code and can help you take advantage of deductions and credits that you may not be aware of. Additionally, they can help you stay compliant with all the latest regulations. This is especially important for restaurant owners, as there are many laws and regulations that apply specifically to the food and beverage industry.
If you’re a restaurant owner in Canada, it’s important to stay up-to-date on the latest changes in taxes. Working with an accounting firm or tax expert can ensure that you’re compliant with all the latest regulations and take advantage of all the tax breaks and deductions available to you. This will help you save money and run your business more efficiently. Contact us today to learn more about how we can help you.
Don’t let the changes in tax laws take you by surprise. An accounting firm or tax expert will help ensure that your business is compliant with all the latest regulations and can save you money on your taxes in 2022. Stay ahead of the game by consulting with an expert today.
If you have any questions about how these changes may affect your business, don’t hesitate to contact our team of experts at GTA Accounting. We would be happy to discuss your specific situation and provide tailored advice. Call us today for a free consultation!
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.