Tax in BC - Freelancing
 

Hi guys,

Wondering if you could give me a basic idea of taxes in BC for self employment.
In the UK, best option is to provide your services through a limited company, take a lower salary and take the rest as dividends.
- So you pay Corporate tax, Employer/Employee NI contributions, and Income tax on Dividends.

What would be an equivalent or most efficient BC?
Either Sole Proprietorships or Incorporated Companies
For example, if I say an annual income of C$100K

Thank you!

Re: Tax in BC - Freelancing
 

Hello, there are many threads on this subject :)

Basically you become self employed - register with the city you are living in and then invoice the company for your services. You pay your self employment taxes (after deductions for having a home office etc.,) and pay Canada Pension contributions for both the 'employer /employee' - but you get a tax credit for the 'employer' side. You have the option as to paying Employment Insurance... you have to register for GST/PST when you have an income in excess of $30,000 but it can be to your advantage to register prior to that figure, you get to claim the GST etc., back on things you pay out on.

This might be of use to you :)

https://www2.gov.bc.ca/gov/content/e...-guide-14steps

Re: Tax in BC - Freelancing
 

It's not usual for computer contractors to claim anything back on GST/HST. It's typically better to choose the quick method under which no claims are allowed.

Re: Tax in BC - Freelancing
 

Sounds similar.

GST/PST looks to work very similar to VAT.

Thanks guys.

Re: Tax in BC - Freelancing
 

Note that it's usual here, Ontario, for agencies to require that contractors incorporate. The usual thing is to establish what's called a numbered company; no name, just the next available number, so as to avoid the cost of a name search. BC may be different and you may not have an agent anyway.

Re: Tax in BC - Freelancing
 

If the OP is invoicing companies overseas (which is zero rated for GST/PST) or working freelance (not through an agency) there may not be a need for incorporation.


Some potentially useful links :)
https://www.moneywehave.com/freelanc...for-canadians/
Freelance Contracting 101 - The Urban Worker Project

https://www.canadianfreelanceunion.ca

https://www.flexjobs.com/internation...commuting-jobs
https://ca.indeed.com/jobs?q=Remote&l=British+Columbia