Corporate Tax Planning in Oshawa
We help Oshawa businesses pay less corporate tax. SBD optimization, salary-dividend strategy, holdco structuring, SR&ED credits for manufacturers, Immediate Expensing on equipment, CRA audit support FREE. Office at 210 Durham St. Fixed flat fee from $400. No hourly billing. 900+ five-star reviews.
We Help Oshawa Businesses Keep More of What They Earn
We work with Oshawa business owners across every industry: automotive parts suppliers on the Hwy 401 corridor, manufacturers in the Oshawa industrial parks, healthcare professionals at Lakeridge Health, construction companies building across Durham Region, tech startups connected to Ontario Tech University and Durham College, and real estate investors throughout Oshawa, Whitby and Clarington. Every client gets a written tax plan that reduces their corporate tax rate, optimizes how they pay themselves and protects their wealth as the business grows.
The difference between a generic tax filing and a proper corporate tax plan is $15,000 to $60,000 per year in tax savings for most Oshawa businesses. We build that plan from your first consultation. For a full overview of our corporate tax planning services, visit our main tax planning page.
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Why Corporate Tax Planning Matters for Oshawa Businesses
| Without Tax Planning | With Gondaliya CPA Tax Planning |
|---|---|
| Paying up to 26.5% corporate tax on all income | SBD applied: 12.2% on the first $500,000 of active business income |
| Owner takes salary only, paying up to 53.53% personal tax | Salary-dividend split optimized: RRSP room created, CPP managed, combined tax minimized |
| Passive investment income inside opco erodes SBD ($71,500 cost at $50,000 passive) | Holdco established: investments transferred via tax-free dividends, SBD preserved |
| Equipment depreciated slowly over years | Immediate Expensing on up to $1.5 million: full first-year deduction on equipment |
| SR&ED credits never claimed (common for Oshawa manufacturers and tech companies) | T661 filed: 35% refundable credit on eligible R&D. $200,000 in developer or engineering salaries = $70,000 cash back from CRA |
Corporate Tax Planning Services for Oshawa Businesses
| Service | What We Do for Oshawa Businesses |
|---|---|
| SBD optimization | The Small Business Deduction reduces your corporate tax rate to 12.2% on the first $500,000 of active business income. We ensure every eligible dollar qualifies. Associated corporation analysis completed for Oshawa multi-corp owners. |
| Salary-dividend optimization | We calculate the ideal salary-dividend split based on your personal tax bracket, RRSP contribution room, CPP benefit goals and family situation. Most Oshawa business owners save $8,000 to $25,000/year from the correct split alone. |
| Holdco structuring | Once retained earnings exceed $200,000, we establish a holding company. Investments transfer from the operating company to the holdco via tax-free inter-company dividends. Passive income is isolated from the SBD calculation. Wealth is protected from operating business risk. |
| SR&ED tax credits | Oshawa has a concentration of manufacturers, automotive parts suppliers and tech companies eligible for SR&ED. We prepare the T661 claim: 35% refundable credit on eligible R&D salaries, contractor costs and overhead. Most Oshawa manufacturers do not realize their process improvements and tooling development qualify. |
| Immediate Expensing | CCPCs can deduct up to $1.5 million in eligible property purchases in the year of acquisition. An Oshawa manufacturer buying $400,000 in CNC equipment gets a $400,000 deduction in year one instead of 20% declining balance over many years. |
| LCGE planning | Each shareholder of a qualifying CCPC can shelter up to $1,281,866 in capital gains on exit. We issue non-voting shares to family members, maintain the 24-month holding period and monitor the 90% active asset test. Two owners with spouses: $5.1 million sheltered. |
| IPP (Individual Pension Plan) | For Oshawa business owners over 40 with T4 salary income exceeding $150,000, an IPP provides higher contribution limits than an RRSP. The corporation deducts the contribution. The pension grows tax-deferred. We evaluate IPP suitability for every qualifying client. |
| CRA audit support (FREE) | If CRA reviews or audits your corporate tax return, we represent you at no additional charge. We respond to every CRA request, attend every meeting and negotiate every reassessment. CRA audit support is FREE for every Gondaliya CPA client. Corporate Tax Planning → |
Oshawa Corporate Tax Planning: Real Client Results
Automotive Parts Manufacturer, Oshawa Industrial Park
An Oshawa manufacturer supplying Stellantis and Honda with precision-machined parts was paying 26.5% corporate tax on $620,000 in income. We applied the SBD to the first $500,000 (12.2%), implemented a 60/40 salary-dividend split, claimed Immediate Expensing on $280,000 in new CNC equipment and filed a first-ever SR&ED claim on tooling development ($42,000 refundable credit). Annual tax savings: $68,400. The manufacturer had never been told that tooling design and process optimization qualified for SR&ED.
Healthcare Professional, Lakeridge Health Area
A specialist physician near Lakeridge Health earning $480,000 through a professional corporation was paying herself entirely in dividends with no RRSP room created and $58,000 in passive investment income inside the opco eroding the SBD. We implemented a salary-dividend split ($160,000 salary creating $28,800 RRSP room), established a holdco, transferred $420,000 in investments via tax-free dividends and restored the full SBD. Annual savings: $34,200.
Construction Company, Durham Region
A general contractor in Oshawa operating through a single corporation with $1.1 million in revenue had 3 associated companies (two operating, one dormant) splitting the SBD three ways. We amalgamated the dormant company, reviewed the association rules for the second operating company and structured the SBD allocation to maximize the benefit. We also claimed Immediate Expensing on $185,000 in heavy equipment and restructured subcontractor payments to ensure T5018 compliance. Annual savings: $27,800.
Tech Startup, Ontario Tech University Area
A software startup near Ontario Tech University with 4 developers and $380,000 in annual R&D spend had never filed an SR&ED claim. We prepared the T661 for the current year and 2 prior years (retroactive claims within the 18-month window). Total SR&ED credits recovered: $196,000 ($133,000 current year + $63,000 prior years). We also incorporated with investor-ready share classes, implemented founder vesting and established zero-rated HST treatment for US customers producing quarterly HST refunds of $3,200.
How Corporate Tax Planning Works at Gondaliya CPA Oshawa
Assess
We review your current corporate structure, financial statements, tax returns and personal tax situation. We identify every tax planning opportunity: SBD, salary-dividend, holdco, SR&ED, Immediate Expensing, LCGE and IPP.
Plan
We build a written tax plan with projected savings. Every recommendation has a dollar amount attached. You see exactly how much you save and what steps are required to implement.
Implement
We execute the plan: restructure salary-dividend, establish the holdco, file the SR&ED claim, claim Immediate Expensing, issue family shares, set up the IPP. Every step done for you.
Monitor
Tax planning is not a one-time event. We review the plan twice per year and adjust for changes in revenue, regulations, family circumstances and business structure.
Oshawa Corporate Tax Planning. From $400. CRA Audit Support FREE.
Fixed flat fee. No hourly billing. Written tax plan with projected savings. 900+ five-star reviews.
2026 Corporate Tax Rates for Oshawa Businesses
| Income Type | Federal Rate | Ontario Rate | Combined Rate |
|---|---|---|---|
| Active business income (first $500,000, CCPC, SBD) | 9.0% | 3.2% | 12.2% |
| Active business income (above $500,000) | 15.0% | 11.5% | 26.5% |
| Investment income (passive, inside corporation) | 38.67% | 11.5% | 50.17% |
| Manufacturing and processing income (above SBD) | 15.0% | 10.0% | 25.0% |
| Small business income (eligible for Ontario SBITC) | 9.0% | 3.2% | 12.2% |
Oshawa Manufacturers: 25.0% vs. 26.5%. Ontario provides a reduced 10.0% rate (instead of 11.5%) on eligible manufacturing and processing income above the SBD threshold. An Oshawa manufacturer with $800,000 in income saves an additional $4,500/year from the M&P rate reduction on the $300,000 above the SBD. We ensure every eligible manufacturer claims this rate. Corporate Tax Planning →
Our Oshawa Office
Serving Oshawa, Whitby, Clarington, Bowmanville, Ajax, Pickering, Port Perry, Uxbridge and all of Durham Region. In-person and virtual appointments available.
210 Durham St, Oshawa, ON L1J 5R3
Phone: (647) 212-9559
Industries We Serve in Oshawa
Frequently Asked Questions: Corporate Tax Planning in Oshawa
Meet Your Oshawa Tax Planning Team
Your Oshawa corporate tax plan is built by licensed CPAs who serve businesses across Durham Region every day.
Sharad Gondaliya, CPA
Founder and Principal CPA. Leads corporate tax planning for Oshawa manufacturers, healthcare professionals, construction companies, tech startups and professional services firms. Specializes in SBD optimization, holdco structuring, SR&ED credit recovery and LCGE exit planning.
Vandana Goel, CPA
Senior CPA. Manages T2 preparation and tax compliance for Oshawa businesses. Experienced in salary-dividend optimization, equipment CCA schedules, Immediate Expensing, associated corporation analysis and CRA audit response for Durham Region clients.
What Our Clients Say
900+ five-star reviews from business owners across Ontario and Canada.
10 Advanced Corporate Tax Strategies for Oshawa Businesses
1. Maximize the SBD by managing passive income
Passive investment income above $50,000 inside the operating corporation erodes the SBD. Every $1 above $50,000 reduces the SBD limit by $5. At $150,000 in passive income, the SBD is eliminated entirely, costing $71,500 in additional tax. We transfer investments to a holdco before this threshold is reached.
2. Claim the manufacturing and processing rate
Oshawa manufacturers qualify for a reduced Ontario rate of 10.0% (vs. 11.5%) on eligible M&P income above the SBD threshold. This reduces the combined rate from 26.5% to 25.0%. On $300,000 above the SBD, the savings are $4,500/year. We calculate M&P eligibility for every manufacturing client.
3. File SR&ED for automotive process improvements
Oshawa auto parts manufacturers developing new tooling, testing new materials, optimizing production processes or prototyping new components qualify for SR&ED. The 35% refundable credit on $200,000 in eligible expenditures produces $70,000 in cash from CRA. We prepare the T661 including the technical narrative, financial summary and project descriptions.
4. Use Immediate Expensing on heavy equipment
A $400,000 CNC machine, a $250,000 commercial vehicle fleet or $180,000 in office renovation can be fully deducted in the year of purchase under Immediate Expensing (CCPC, up to $1.5 million). This accelerates the deduction from 20% declining balance to 100% in year one.
5. Implement salary-dividend optimization annually
The optimal salary-dividend split changes every year based on personal income, RRSP room, CPP contribution status and family changes. We recalculate annually. A shift from 100% dividends to a 60/40 salary-dividend split typically creates $28,000 to $55,000 in new RRSP contribution room.
6. Establish a holdco when retained earnings exceed $200,000
The holding company receives dividends from the operating company tax-free, invests independently and isolates passive income from the SBD calculation. It also provides creditor protection: if the operating business is sued, the holdco assets are separate. We establish the holdco, handle the share subscription and manage the annual inter-company dividends.
7. Issue family shares for LCGE multiplication
Non-voting shares issued to a spouse and adult children allow each shareholder to claim their own LCGE on exit ($1,281,866 each in 2025). Two founders with two spouses: $5.1 million sheltered from capital gains tax. We issue the shares at incorporation or through a reorganization and maintain LCGE eligibility throughout the holding period.
8. Evaluate an IPP for owners over 40
An Individual Pension Plan provides higher tax-deferred retirement savings than an RRSP for business owners over 40 with T4 salary exceeding $150,000. The corporation deducts the IPP contribution. At age 55, the IPP contribution limit can exceed $40,000/year (vs. $32,490 RRSP limit). We evaluate IPP suitability for every qualifying Oshawa client.
9. Structure real estate investments correctly
Oshawa real estate investors must separate rental income from active business income. Rental properties inside the operating corporation generate passive income that erodes the SBD. We structure rental properties in a separate corporation or holdco with the correct CCA class and allocation strategy.
10. Plan for succession and exit from day one
Whether you are selling your Oshawa business in 5 years or 20 years, the exit structure must be in place now. LCGE eligibility requires a 24-month holding period, 90% active asset test and qualifying CCPC shares. Estate freeze, family trust and intergenerational transfer structures all require advance planning. We build the exit plan into your tax strategy from the first year.
Oshawa Corporate Tax Planning. Built by a Licensed CPA.
SBD optimization, salary-dividend strategy, holdco, SR&ED, Immediate Expensing, LCGE, CRA audit support FREE. Fixed flat fee from $400. Office at 210 Durham St.