Surplus Calculator: Foreign tax

Easily prepare complex tax calculations for each of your Canadian company’s foreign subsidiaries.

Surplus calculation can be complex and time consuming, creating challenges for Canadian organizations with subsidiaries in other countries. They include:

  • the need to quickly understand where surplus balances are within the business to facilitate planning for restructuring or distributions;
  • controlling the input of data into a surplus calculation; and
  • applying complex technical rules for calculating surplus.

To make it easier, we’ve developed the Surplus Calculator, a tool that improves efficiency, delivers better insights into your business and offers greater value for your money.

A tool to improve the quality and timeliness of your reporting

Using our Surplus Calculator, we’ll be able to easily and accurately prepare your tax calculations related to each of your Canadian company’s foreign subsidiaries. The tool helps calculate the surplus balances of your foreign affiliates, integrating multiple interdependencies and giving you snapshots of balances (including summaries of all balances in the Canadian parent’s functional currency at a specific point in time).

Our Surplus Calculator uses a Microsoft SQL Server database, rather than Excel, to deliver the highest level of accuracy, data integrity and automation. You’ll see the benefits in improved quality and timeliness of reporting on foreign affiliate surplus balances.

How our Surplus Calculator can help your organization

Our Surplus Calculator can help accelerate the digital transformation of your international tax compliance activities, including:

Data entry: There’s no limit to the number of foreign affiliates, and you can upload data from Excel and US tax return source files.

Computation: The tool automatically incorporates currency conversions, updates to dividend flows based on surplus changes, liquidations, amalgamations and associated surplus characterizations. The 90-day rule automatically applied to dividends.

Output: We can customize the solution to your specifications for integration into your reporting, including:

  • Excel for further use or linking;

  • Data visualization;

  • Organizational chart showing the structure within the calculator; and

  • Summary charts of surplus of all foreign affiliates in their source currency or a common currency.

To learn more about how this tool can simplify your business contact us today.

Contact us

Genevieve Groulx

Genevieve Groulx

Partner, Tax Reporting and Strategy, PwC Canada

Tel: +1 403 606 8280

Kim Wood

Kim Wood

National Energy Leader, PwC Canada

Tel: + 1 403 509 7435

Simon Lamarche

Simon Lamarche

Partner, International Tax, PwC Canada

Tel: +1 514 205 5143

Marianne L Thompson

Marianne L Thompson

Partner, International Tax Services, PwC Canada

Tel: +1 905 815 6431

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Dean Landry

Dean Landry

National Tax Leader, PwC Canada

Tel: +1 416 815 5090