Business Taxation

A business generally pays income tax on its net profits, which is calculated as its ordinary business income less any allowable business deductions. These deductions can often include home office expenses, travel expenses, hostess gifts and the costs of goods sold.

However, independent salespeople usually cannot offset a business loss against other types of ordinary income such as wages.

A business must also register for Goods and Services Tax (GST) when total sales and/or total sales commissions is $75,000 per year or more.