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Q: I am receiving a salary from my sole proprietorship. Is my salary subject to Monthly Tax Deduction (MTD) and required to be declared in Form E?
A: No, your salary from your sole proprietorship is not subject to MTD and you are not required to declare it in Form E because you are considered an owner, not an employee, hence the salary is considered a drawing.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru