Healthcare & Medical Professional Tax Services in Markham

Page summary

Specialized tax and accounting services for healthcare professionals. From professional corporation setup to OHIP reconciliation, we understand your industry.

  • Healthcare professionals and medical practices face unique accounting and tax challenges: managing billing and collections, OHIP reconciliation, setting up professional corporations, managing staff payroll, equipment financing, and optimizing deductions.
  • Optimize professional corporation structure for tax efficiency
  • Maximize healthcare-specific deductions
  • Streamline OHIP billing and reconciliation
  • Manage complex payroll for healthcare staff
  • Practice Structure Review: We review your current practice structure: whether you're operating as a sole proprietor, partnership, or corporation. We analyze if a professional corporation would provide tax or liability benefits.
  • Billing & Collections Analysis: We review your billing practices, OHIP fee schedule compliance, patient collections, and accounts receivable. We identify opportunities to improve cash flow.
  • Tax Optimization: We implement strategies for professional corporation optimization, equipment depreciation, professional expense deductions, and retirement planning specific to healthcare professionals.
  • Ongoing Management: Monthly financial statements, quarterly OHIP reconciliation, annual tax planning, and strategic reviews of equipment needs, staffing, and expansion plans.

Common questions

How are professional corporations (medicine/dentistry) taxed in Ontario?
A professional corporation (PC) in Ontario — available to physicians, dentists, optometrists, and several other regulated professions — is taxed at the combined federal-provincial small business rate of approximately 12.2% on the first $500,000 of active professional income, compared to personal marginal rates of up to 53.5% in Ontario. Income left inside the PC is taxed at that lower rate and can be invested or used to fund practice expenses. When you eventually draw money out as salary or dividends, you pay personal tax then — but the deferral benefit can be significant over a career.
Can I split income with family members in a healthcare PC?
Since the 2018 TOSI (Tax on Split Income) rules, income splitting through a PC has become much more restricted. Dividends paid to a spouse, adult children, or other family members who do not make a meaningful contribution to the practice are now taxed at the highest marginal rate — eliminating the benefit. Exceptions exist for spouses over 65 and for family members who are actively involved in the business. We review your family situation carefully before designing any income-splitting strategy to ensure it holds up under CRA scrutiny.
What expenses can dentists and doctors deduct?
Whether you operate through a PC or as a sole proprietor, deductible expenses include: office rent or mortgage interest on owned premises, staff wages and benefits, dental/medical supplies and lab fees, equipment (depreciated under CCA), malpractice insurance (CMPA fees are fully deductible for physicians), continuing medical education, professional dues, and a portion of home-office costs if applicable. Vehicle expenses for patient visits or hospital rounds can also qualify. We maintain an expense checklist specific to your specialty to ensure nothing is missed at year-end.

Contact

ARMalik Professional Corporation
7393 Markham Rd Unit 89, Markham, ON L3S 0B5
647-880-3298
adil@armalik.com