Accumulative Earning Tax

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Uscanada
Posts: 2
Joined: Mon Feb 18, 2013 1:34 am

Accumulative Earning Tax

Post by Uscanada »

I (USC) have a professional corporation in Canada, does Accumulative Earning Tax applies to my corporation? thanks.
Top
Uscanada
Posts: 2
Joined: Mon Feb 18, 2013 1:34 am

Re: Accumulative Earning Tax

Post by Uscanada »

[quote="Uscanada"]I (USC) have a professional corporation in Canada, does Accumulative Earning Tax apply to my corporation? thanks.[/quote]
Top
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

Because you are a USC you do not need to file a 1120F for your CND corp, however you are subject to reporting requirements and you will have to notify the IRS of the Accumulated earnings amounts and once it surpasses the 2 year threshold you are deemed to have taken it as a dividend under section 531. The only exception as a foreign corp is if your corp is a personal holding company.
JG
Top
Post Reply

Return to “Canada / United States Tax & Accounting”