The Taxes and the Right Asset Management

Asset and wealth management | PwC Canada

The taxpayer (company or individual) is confronted during his life with declarations relating to taxes. Individuals must declare their income annually. They are subject to income tax, housing tax and property tax. As for companies, they fill in the declaration of result, value added tax (VAT), business property assessment (CFE), business value added contribution (CVAE) or corporate tax (IR). in some cases).

The main tax returns for individuals

A person acting within the framework of the management of his / her assets may be subject to declarative obligations specific to companies (certain furnished rental companies who may be required to produce income or VAT declarations).

Income tax return

This is the main formality weighing on individuals. Each year, taxpayers must declare the elements used to calculate their income tax (income received falling into the different tax categories, deductible charges, family situation, tax reductions and credits, etc.)

Depending on the complexity of the reporting situation, different forms will have to be completed:

  • The main declaration 2042, which contains the most common information (salaries and wages, income from movable capital, family situation, etc.)
  • The 2044 or 2044 SPE declaration relating to property income
  • The 2042 C PRO declaration concerning income from self-employed professions
  • The 2042 RICI declaration allowing the declaration of certain tax credits and reductions
  • Declaration 2074, relating to capital gains on transferable securities
  • Declaration 2047 relating to income received abroad

Tax households whose benchmark tax income does not exceed a certain amount (16,000 euros) must declare their income on the internet, on the portal.

Housing tax and property tax

These are contributions making it possible to finance local authorities.

The property tax relates to property owners on January 1 of the tax year. There the tax return calculator comes into much use now.

The housing tax is aimed at people with residential premises on January 1 of the tax year

Generally, the taxpayer does not have to produce a declaration; the administration notifies him of a tax notice according to the address he declared or his title deeds. Any deductions and exemptions are granted based on the elements contained in the income tax return.

It may be necessary to produce a specific declaration in order to benefit from certain property tax exemptions (new building or environmental work). To benefit from an exemption linked to the person of the taxpayer (widower, disabled.), certain supporting documents must be provided.

The main declarations of companies

Result statements

Holders of industrial and commercial profits (BIC) , non-commercial profits (BNC) or agricultural profits (BA) must produce each year, before the beginning of May, a declaration of results allowing the calculation of the taxable result before be carried over to the income tax return. This result is equal to the difference between taxable income and deductible expenses. The declaration is made up of a tax package (2031 for BICs and 2035 for BNCs) and various annexes. Only taxpayers subject to a real tax regime must file a declaration of results.