Healthcare Professionals

Should I incorporate my medical or dental practice?

For most healthcare professionals earning above ~$250,000, incorporating provides significant tax deferral advantages. Income retained in the corporation is taxed at the small business rate (~12.2% in Ontario) rather than your personal marginal rate (up to 53.53%). The deferred tax savings can be invested within the corporation, compounding over time. We model the break-even point and long-term benefit for your specific income level.

Do medical services qualify for HST?

Most physician and dentist services are HST-exempt under the Excise Tax Act. However, certain services — cosmetic procedures, some dental services, and non-insured health services — may be taxable. If you provide a mix of exempt and taxable services, you may have partial input tax credit (ITC) entitlements. We ensure your HST position is correctly structured.

What is income splitting and can I use it?

Income splitting involves paying dividends from your professional corporation to family members in lower tax brackets. Post-2018, the Tax on Split Income (TOSI) rules restrict this for passive shareholders. However, family members who are active in the business may still be eligible. We review your family situation and compensation structure to identify every opportunity within the rules.

I have multiple clinic locations. How does that affect my accounting?

Multiple locations can create complex intercompany transactions, cost allocation questions, and potentially separate legal entities. We structure your accounting so you have clear visibility into each location's performance while keeping your overall tax position optimized.