canada revenue agency duty free allowance

If a website development cost is a capital cost it may be for the acquisition of “general purpose electronic data processing equipment” and therefore included in class 10(f) or it may be for the acquisition of computer software and therefore included in class 12(o).īest to keep checking back to our tax tips in order to stay up-to-date on changes relating to online, Internet and e-commerce Canadian businesses. Whether a website development cost is current or capital is always a question of fact. There are no specific provisions in the Income Tax Act regarding the treatment of website development costs but some of the principles in the Income Tax Folio S3-F4-C1, can apply to website development costs. All it takes is a simple declaration to be added. It removes about 98 of all import duties on goods of EU or Canadian origin making it easier and cheaper to import and export. Generally, software is considered depreciable if it is of an enduring nature, which generally means that its useful life is anticipated to be beyond one year. The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between the EU and Canada that aims to boost trade and help generate growth and jobs. If it is system software, (the general operating system that enables running the application of programs, directs and coordinates the different operations of the computer and includes all of the input and output between the keyboard, the computer screen, the printer, the disk drives and other peripheral equipment), include it in class 8, 10, 29, or 40.

If it is computer software (which includes system software and a right or a license to use computer software), that is a depreciable asset, include it class12. capital and deductible under the rules in the Income Tax Act for capital cost allowance.įor more information on general principles for capital cost allowance, follow this link to the CRA’s information Income Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance.current and deductible in the year they are incurred or.In general, computer software or website development costs are either: Capital cost allowance – computer software and website development costs

Canada revenue agency duty free allowance