Guaranteed Income Supplement (GIS)
GIS provides additional money, on top of Old Age Security, to low income seniors living in Canada. You only need to apply once for the benefit and will not need to re-apply as long as you file an income tax return each year. However, if you do not file an income tax return or the CRA requires more information, the CRA will send you a renewal application form in the mail. Once you receive it, you must complete this form even if you file an income tax return.
Qualifications for GIS
In order for you to qualify for GIS, you must be eligible for the Old Age Security (OAS) pension. Your eligibility also depends on the combined income of you and your spousal/common-law partner. On July 1, 2008, an amendment to the Old Age Security Act came into effect, increasing the GIS earning exemption to $3,500 from $500. If your annual income (not including OAS pension) exceeds $16,511.99 (single, widowed or divorced) or $21,839.99 (married or common-law partner), you do not qualify for GIS.
Old Age Security (OAS)
The OAS pension is a monthly benefit available to most Canadians 65 years of age or older who lived in Canada for at least 10 years. You can apply for OAS via a Service Canada application kit. You can get the kit by contacting Service Canada, picking it up from a Service Canada centre near you, or printing it from the Service Canada website.
Qualifications for OAS
The 3 main components to determine if you are eligible to receive OAS are your age, your legal status, and the number of years you have lived in Canada.
You may be eligible to receive full OAS pension in Scenario 1 and 2.
Scenario 1 – People Living in Canada
Calculations for OAS
If you did not live in Canada continuously for 10 years immediately before the pension approval, you may still qualify if:
Budget 2012 ChangesThe government is gradually increasing the age of eligibility for the OAS and GIS between 2023 and 2029, from the age of 65 to 67. However, people currently receiving the OAS benefits will not be affected. If you were born in 1957 or earlier, you will not be affected by the new changes. From April, 1958, the government will increase 1 month time after age 65 every 2 months. For example, if you were born in June, 1958, you will be eligible for OAS at the age of 65 + 2 months. If you were born in February, 1962 or later, you will be eligible for OAS at the age of 67.
Canada Pension Plan (CPP)
The CPP is a monthly taxable benefit to retired contributors. You can apply electronically and submit it online to Service Canada, or print the form and complete it by hand, then mail it to Service Canada.
Changes to CPP
Following are some of the changes implemented in January, 2011:
For example, in 2013, if you start receiving your CPP pension at the age of 70, your pension amount will be 42% (30% before 2011) more than it would have been if you had taken it at the age of 65.
Provincial Sales Tax (PST)
PST Rates (Effective April 1, 2013)
Items | PST Rates
Goods and services | 7%
Alcohol | 10%
Accommodation | 8%
Less than $55,000 | 7%
$55,000 to less than $56,000 | 8%
$56,000 to less than $57,000 | 9%
$57,000 or more | 10%
Other motor vehicles and trailers 7%
Vehicles, boats and aircraft acquired from private individuals or non GST registrants (purchased or received as a gift | 12%
Four Types of Firms
Two Types of Partnership
Limited Liability Company (LLC)
Steps to Incorporating a Company
To incorporate a company in BC, one or more persons (called the incorporators) may form a company by completing the following steps:
After you filed the Incorporation Application electronically and the company is incorporated, the Corporate Registry will send you the original Certificate of Incorporation, a certified copy of the Incorporation Application and a certified copy of the Notice of Articles. These documents must be kept by the company as part of the company’s records.
The fee to incorporate a company by filing an Incorporation Application using Corporate Online is $350.00 and a BC OnLine service fee of $1.50 plus HST.
Becoming a Non-Resident of Canada
You are a non-resident for tax purposes if you:
*Residential ties include:
Other ties that may be relevant:
As a non-resident, you pay tax on income you receive from sources in Canada. This applies to the year you leave Canada and each year afterwards, provided you remain a non-resident for tax purposes.
Advantage of Corporate-Owned Life Insurance
Deductibility of Insurance for Tax Purposes