Tag Archive for Canada Taxes

Canada: What You Must Know About Provincial Sales Tax (PST)

Grant Gilmour-Provincial Sales Tax

Provincial sales tax (PST) is a retail sales tax that applies when a taxable good or service is purchased, acquired or brought into B.C., unless a specific exemption applies.

The PST generally applies to:

  • The purchase or lease of new and used goods in B.C.
  • Goods brought, sent or delivered into B.C. for use in B.C.
  • The purchase of:
    • software
    • services to goods such as vehicle maintenance, furniture assembly, computer repair
    • accommodation
    • legal services
    • telecommunication services, including Internet services and certain digital and electronic media content such as music and movies
  • Gifts of vehicles, boats and aircraft

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Written by | Posted in Canada Tax • Provincial Sales Tax (PST)

Tax Consequences For Corporate Entry Into Canada

A company is considered to have immigrated to Canada if the corporation’s central management and control has moved to Canada, regardless if initially incorporated in Canada or not. Therefore, when a business owner moves to Canada, so does the business.

When the company enters Canada, the company is deemed to have disposed of and reacquired all of the company’s assets and liabilities at their fair market value (FMV) right before coming to Canada. As the assets and liabilities of the company are being re-valued at the FMV, this is considered to be the company’s valuation date. Read More

Written by | Posted in Canada • International