Taxation
An RRSP (Registered Retirement Savings Plan) is an account for saving money for retirement. Its advantage: every euro you contribute reduces your taxable income for the year, and therefore your tax bill. You pay the tax later, when you withdraw the money. The 2026 contribution limit is $33,810.
An RRSP is like a tax coupon you give yourself: by contributing before the deadline (often the end of February for the previous year), you reduce the tax you pay now. For example, if you contribute €5,000 to your RRSP, this amount is deducted from your taxable income, potentially saving you several hundred dollars in taxes this year. An important detail for business owners: only salary (not dividends) accrues RRSP contributions, which is a factor to consider when choosing between salary and dividends. Bankeo will connect you with a certified accountant/CPA free of charge to optimize your contributions (deposits) based on your income, and we'll be there to support you every step of the way.
It's a retirement savings account with a tax advantage: the money you deposit is deducted from your taxable income, so you pay less tax this year. You'll pay the tax later, when you withdraw the money.
You can contribute up to $33,810 in 2026, or 18% of your previous year's earned income if that amount is lower. Any unused contribution room carries over to future years.
No: only earned income, such as a salary, creates RRSP contribution room. This is a key point when choosing between paying yourself a salary or a dividend. Bankeo will connect you with a verified accountant/CPA free of charge, who will advise you, often within 48 hours, and we'll be there to support you every step of the way.
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