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HST Ontario Credit
Are you
aware of the HST Ontario Credit ?
The Ontario government is providing one-time
transition
assistance totaling up to $400 million, to help small
businesses make changes to their point-of-sale and accounting systems in
order to collect the Harmonized Sales Tax (HST) that comes into effect
in Ontario on July 1, 2010. These changes must be implemented by July 1,
2010 in order to ensure that the HST is properly charged and paid.
Systems that require changes may include, for example
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Point-of-sale
terminals, cash registers, computer software and websites
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Invoices, sales
receipts, purchase orders and expense reports
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The ability to
track ITCs, and the federal/provincial components of HST
Eligibility
In order to qualify for the transition credit an eligible business must
be a registrant under the Excise Tax Act (Canada) on July 1, 2010. An
eligible business:
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must make taxable
supplies for the purposes of the ETA
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Is not a listed
financial institution
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Is defined as an
Ontario business
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Must have taxable
revenues of less than $2,000,000 (as announced in the 2010 Ontario
budget, the province will prescribe the 12 month period for
calculating the $2M taxable revenue threshold for purposes of the
transition credit).
Eligible businesses will qualify for the transition credit amount of up
to $1,000 as outlined in the following table:
Small
Business Transition Credit |
|
Total Quarterly Taxable Revenues |
|
Amount of Transition Credit |
|
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Up to and Including $15,000 |
$300 |
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Over $15,000 and Up to and Including $50,000 |
2% of Taxable Revenue for the Quarter |
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Over $50,000 and Up to and Including $500,000 |
$1,000 |
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Payments
Eligible businesses will not be required to apply or submit proof of
expenses in order to receive the small business transition credit.
Ontario will automatically generate and send cheques to all eligible
businesses. The issuance of the cheques is expected to commence in late
fall of 2010. |
Tax Alert
Budget did not change corporate tax rates. Ontario CCPC is
subject to 15.5% tax on Canadian Business Income up to $500K.
Incorporating your business may provide great deferral
opportunities
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