Startups and businesses in their early stages usually have a difficult time complying with taxes. A lack of familiarity with the regulations and rules meant for taxes means they do not know the procedures to follow.
Income Taxes for Digital Marketers
Digital marketers have a tough time working out the tax they should pay and what steps to take to ensure they are tax accountable. Being tax accountable makes digital marketers more aware of their income once all the deductibles have been removed. After paying taxes, the marketer will also be able to determine their returns from digital marketing.
Electronic Payments
As a digital marketer, you usually receive your online payment through Google Wallet and PayPal. These are digital forms of payments, and the process of making tax payments can get confusing. The fact that you are receiving your payments online as a digital marketer does not mean that you should not report on Canada income tax.
The amount of tax you can pay is determined by the kind of business entity you have in place, such as a sole proprietorship or partnership. Your income tax rates will be different in each case, and your business registration usually determines what kind of business you are.Canadian tax law requires you to file tax returns if you get an income of at least $30,000 in the year. All the payments you receive through PayPal and other online platforms are reported just as you would other forms of income.
You will need to claim the income you get as taxable income, entitling you to various deductions and tax benefits. The best way to go about the tax calculation process as a digital marketer would be to work with an accountant. A professional that is well versed in the Canadian tax laws for digital goods and services will ensure that you are well guided on the process of filing your tax returns. Legal advice is crucial, and as a digital marketer, it will ensure that you are fully informed of all tax requirements and obligations.
Additionally, the advice will ensure that you are fully aware of what you are supposed to be paying and what deductions can be made on the taxable amount. The tax requirements will be different based on what legal entity you have registered your business under. For instance, an LLC will be handled differently than a sole proprietorship, where you will be taxed as an individual. If you have a business license from your local municipality, it will be even easier to work out the taxes payable.
Wrap Up
Taxes for digital marketers in Canada require clear documentation since most payments are made through online platforms. Receiving payments through PayPal and Google Wallet means that your digital marketing business will be treated as an online business.
The taxation process will be different, and the regulations will also be unique to digital services. The method of filing your tax in Canada is also different, and you must be well guided to ensure that you do everything correctly. A tax accountant can advise you on the legal requirements and guide you in filing the correct forms.