Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!
Q: Terry is earning business income and receives CP500, so he needs to pay his tax in advance by instalments. He then also started to working in a company, and his salary is subject monthly tax deduction (PCB). Both his income are now subjected to advance tax payment, is this correct? Which form should he use to file his income tax?
A: This is correct. Taxpayers with business income need to pay tax in advance via CP500, and if the salary exceeds a certain threshold, the salary is also be subjected to PCB. As long as he has business income, all his income need to be reported using Form B.
Wishing you plentiful tax savings!
YYC Tax Guru