T2 filing, GST/PST, CCPC planning, salary vs dividend, and BC-specific tax rules — virtual sessions for British Columbia business owners.
Book a Free Intro CallBC has its own provincial sales tax (PST) separate from the federal GST, an Employer Health Tax, and one of the higher personal tax rates in Canada. Smart Canada Tax helps BC incorporated business owners navigate all of it — and structure their corporations to minimize the combined tax burden.
Annual T2 filing for BC CCPCs — small business deduction, BC tax schedules, and CCA optimization.
BC charges 5% GST + 7% PST separately. We help with registration, remittance, and what is PST-exempt.
BC has some of the highest personal tax rates in Canada — optimizing your mix can save thousands.
BC vs federal incorporation, annual filing requirements, and whether incorporating makes sense for you.
Tax-free intercorporate dividends, asset protection, and LCGE preservation for BC business owners.
Personal returns for BC incorporated professionals — shareholders, directors, and owner-managers.
| Income Type | Federal Rate | BC Rate | Combined Rate |
|---|---|---|---|
| Active business income (CCPC, first $500K) | 9.0% | 2.0% | 11.0% |
| Active business income (above $500K) | 15.0% | 12.0% | 27.0% |
| Investment/passive income | 38.67% | 12.0% | 50.67% |
BC's CCPC rate is 11% on the first $500,000 of active business income — tied with Alberta for the lowest in Canada. Despite higher personal tax rates, BC's corporate rate makes it attractive to retain income inside a corporation.
Unlike Ontario (HST) or Alberta (GST only), BC has a separate 7% provincial sales tax administered by the BC Ministry of Finance — not CRA. If your business sells taxable goods or software in BC, you need to register for both GST (with CRA) and PST (with the BC government). These are two completely separate registrations, two separate returns, and two separate remittance processes.
Common BC mistake: Registering for GST and assuming PST is covered. It is not. BC PST is a separate registration with separate rules about what is taxable. Software, SaaS products, and many services are PST-taxable in BC even when they are GST-exempt.
BC employers with total BC payroll above $500,000 pay the BC Employer Health Tax. Rates:
For most small corporations under $500,000 in payroll, no BCEHT applies. But as you hire staff, this threshold becomes a key planning consideration.
BC's top personal marginal rate is 20.5% provincial, giving a combined federal + provincial rate of 53.5% on income above $252,752. This high personal rate makes it very advantageous for BC shareholders to leave money inside the corporation and invest through a holdco rather than paying it out as personal income.
BC corporations must file an annual report with BC Registries every year (due on the anniversary of incorporation). The fee is $43/year for most companies. Missing the annual report can result in the corporation being struck from the registry.
Between PST, BCEHT, and BC's high personal rates, there are real savings available with proper planning. Book a virtual session with a qualified BC tax advisor.
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