Tax guides
Guides to Canadian federal and provincial rules, grouped by topic.
A holding company can own your operating company and receive some corporate dividends without ordinary income tax, but Part IV tax and anti-avoidance rules may apply. Investing inside either company can reduce the operating company's small business limit when the companies are associated. A rental corporation usually earns investment income, so compare the full tax and transfer costs before moving property.
Corporations
A Canadian sole proprietor or partnership can generally defer tax on eligible business assets by transferring them to a taxable Canadian corporation for shares and filing a section 85 election. The elected amount is set for each asset within legal limits. Receivables, GST/HST and land transfer tax need separate checks; incorporation alone does not defer tax.
Self-employed · Partnerships · Corporations
Choose who owns each client contract before invoicing. For separate businesses, each sole proprietor reports profit on their own T1 with T2125 and owes their taxes. In one shared partnership, each partner reports their share on a T1 and can owe its debts and GST/HST personally. A corporation pays tax on its profit and files a T2; owners report wages or dividends paid to them, and directors can owe unpaid remittances.
Self-employed · Partnerships · Corporations
Many licensed professionals can incorporate, but permission, share ownership and approval depend on the province and profession. A corporation does not erase personal professional liability. It may qualify for the small business deduction if it meets the usual tax rules, while billing a related clinic, joining a partnership or paying family dividends can change the result.
Self-employed · Corporations
There is no income level at which every Canadian business should incorporate. Incorporation may make sense when you consistently earn more than you need personally and can leave active business profit in the company. If you withdraw nearly everything or expect early losses, the added filings and costs may outweigh the tax deferral. Liability, clients, and province also matter.
Self-employed · Corporations
Yes. First check names, licences, articles, and owners. A proprietor can run both, personally pays tax, and combines taxable sales for one GST/HST $30,000 limit. One corporation can run both; for separate owners or obligations, form another. Each corporation pays and files separately, but associated Canadian-controlled private corporations share the federal $500,000 limit.
Self-employed · Corporations
Find the corporation's BN and RC first: federal and some provincial incorporations assign them; others require CRA registration. Add RT when GST/HST registration is required or chosen, and RP before the first payroll remittance. The corporation owes its tax; the former proprietor owes prior sole-proprietor tax. Stop using the old personal RT and reconcile affected invoices and returns with CRA.
Corporations
First compare price, tax costs and retained debts, then name the buyer. Assets give new tax costs: a sole proprietor pays tax personally, a corporation pays its own, and partners report their shares. Shares leave the target's costs and debts intact. Check GST44 or Quebec's FP-2044-V, provincial clearance and any non-resident seller withholding.
Self-employed · Partnerships · Corporations
No PR or citizenship is needed to own or incorporate, even before arrival. First choose a jurisdiction and arrange its local office. A sole federal director must be a resident Canadian; Ontario and BC permit a qualified non-resident. The corporation pays income tax and may get the small business rate only with CCPC status and eligible income; non-resident control generally bars it. Directors can owe unremitted payroll tax or GST/HST.
Corporations · Self-employed
Before signing, check the articles, agreement, share rights, value, cost base and paid-up capital. A buyer pays the selling owner for existing shares; a new subscription pays the corporation. The seller may owe capital-gains tax, while a corporate redemption can create a dividend. Family gifts can expose recipients to unpaid tax. An exiting partner reports allocated income and any gain on the interest sale.
Corporations · Partnerships
First calculate the loss on T2125, your partnership allocation, or the corporation's T2. A qualifying sole-proprietor or ordinary partnership loss can offset personal income, including T4 salary; you pay any remaining personal tax. Unused non-capital losses generally carry back three years or forward 20. A corporation pays its own tax and keeps its losses; limited partners face at-risk limits.
Self-employed · Partnerships · Corporations
List every missing T2 year, GST/HST period and payroll obligation, then match them to the corporation's CRA accounts and records. Respond at once to any demand or collection action. Rebuild the books, file the required returns, and reconcile the new assessments and payments. Resident corporations still need T2 returns for inactive years; registered GST/HST periods still need returns even when nil.
Corporations
A new Canadian corporation chooses its first T2 year-end within 53 weeks of incorporation; choose a date that fits its books and operations. December 31 is optional for most. A later voluntary change generally needs CRA approval for a business reason and usually creates a short year. The corporation files returns and pays any tax due for each period.
Corporations
You can prepare and file your corporation's T2 yourself using CRA-certified tax software if you can reconcile its financial records, choose the required schedules, and check its tax position. File within six months of year-end, but pay any balance earlier. Most corporations must file electronically. An inactive corporation may still need a T2, and Quebec or Alberta activity may require a separate provincial return.
Corporations
A Canadian resident generally must file Form T1135 if the total cost of their foreign property, such as foreign accounts, shares and rental property, is more than $100,000 at any time in the year. If they own at least 1% of a foreign company, and 10% with related people, they report that company on Form T1134, not T1135.
Individuals · Self-employed · Partnerships · Corporations
A Canadian corporation pays federal and provincial or territorial income tax. A Canadian-controlled private corporation may pay 9% federally on qualifying active business income within its business limit; income qualifying for the general rate reduction faces 15% federally. Add the applicable provincial or territorial rate. Investment income and owner dividends follow different rules.
Corporations
A Canadian sole proprietor reports business profit on a personal return, generally using Form T2125. Profit can result in federal and provincial or territorial income tax, plus self-employed CPP contributions outside Quebec or QPP and QPIP in Quebec. Set money aside from projected profit for income tax and contributions; the right amount depends on your total income and province.
Self-employed
First map establishments and check destination registration rules. Corporations pay tax where they have permanent establishments, splitting income on Schedule 5 if several; Quebec CO-17 or Alberta AT1 may apply. Sole proprietors and individual partners pay personally; income outside their year-end home province may require T2203 and a Quebec return. Payroll follows separate rules. Incorporation location does not shift income.
Corporations · Self-employed · Partnerships
Canadian tax residents generally are not taxed on a non-US company's retained active profit, but controlled-affiliate FAPI can be taxable before payment. Individuals report foreign dividends; some shareholder loans or benefits are taxable. Corporate owners may deduct dividends. Foreign-affiliate status can require T1134, except in an individual's first-ever resident year. Canadian management may affect company residence and T2 filing.
Individuals · Corporations
A late personal or corporate income tax return normally draws a penalty based on tax still unpaid when the return was due. GST/HST returns, payroll remittances and information slips have separate rules. Interest usually runs from the payment due date, even if filing is due later. The CRA can cancel penalties or interest for qualifying circumstances, but relief is discretionary and does not erase tax.
Individuals · Self-employed · Partnerships · Corporations
A corporation may have a personal services business if its worker or a related person is a specified shareholder and the worker would be the client's employee or officer without incorporation. This requires five or fewer full-time employees throughout the year and no payment for the services from an associated corporation. Its income faces higher tax and limited deductions.
Corporations
Read the letter for the tax account, years, issues, documents requested, and response date. Confirm the contact is genuine, gather the records that support the amounts questioned, and reply through the method the CRA specifies. Ask for more time before the deadline if needed. An audit already covering an omitted item can rule out voluntary disclosure for that item.
Individuals · Self-employed · Partnerships · Corporations
If you sell your corporation's shares, you generally report a personal capital gain and may claim the lifetime capital gains exemption if the shares qualify. If the corporation sells its assets, it reports income, recaptured depreciation and capital gains; taking the proceeds out can create a second personal tax event. The contract, asset history and buyer determine the result.
Corporations · Individuals
Yes. First list open filing, payment, and remittance deadlines; switching accountants does not extend them. Sole proprietors owe their own tax, partners report income shares and may owe partnership GST/HST, and corporations owe corporate tax while directors may owe missed remittances. Transfer returns, notices, and books; authorize the needed accounts, then revoke the former representative.
Self-employed · Partnerships · Corporations
Confirm authority and share value first. The deceased generally reports a death-date gain on the final T1 unless a spouse rollover applies. The estate pays tax on later taxable dividends; an estate loss election may offset the gain. The corporation pays its own tax and files T2s. Distribution before clearance can make the executor personally liable.
Corporations · Individuals
A sole proprietor reports business income on a personal T1, and partners report their shares on their own returns; some partnerships also file a T5013 information return. A resident corporation generally files a separate T2 every tax year, even when inactive. GST/HST registrants file for every reporting period, including periods with no sales. Payments can also trigger tax slips.
Self-employed · Partnerships · Corporations
Canadian tax residence usually follows where you keep significant residential ties, especially a home, spouse or dependants. Citizenship, immigration status, work location and a simple day count do not decide it. You may remain resident while spending fewer than 183 days in Canada. A tax treaty can change the result if both countries treat you as resident.
Individuals
Identify each year you had to file, collect CRA slips and your own records, and prepare a T1 for each year using that year's rules. Respond promptly to any CRA demand. File even if you cannot pay: a late-filing penalty depends on tax owing, while missing returns can interrupt benefits and put older refunds out of reach.
Individuals · Self-employed
On your first Canadian return, report worldwide income earned from the date you became a tax resident, plus any Canadian income taxable before that date. Pre-arrival foreign income is generally excluded from taxable income but may be needed for benefits and credits. Record the arrival-date value of property you already owned. The T1135 exception applies when you first become a Canadian resident.
Individuals
If you are a Canadian tax resident, generally report foreign income in Canadian dollars even when it stays abroad. Report the gross amount of reportable income on the return line for its type, then calculate eligible foreign tax credits by country. The credit is limited by Canadian tax on that income; treaty exemptions and excess withholding need separate treatment.
Individuals · Self-employed
Reply by the CRA letter’s date with proof of foreign income, final tax, payments and refunds. For paper-filed US claims, include the applicable W-2, return and IRS account transcript. If denied, send missing proof and file a timely objection; you owe any remaining tax and interest. Quebec residents must separately address a Quebec reassessment.
Individuals · Self-employed
If you become a non-resident of Canada, you report worldwide income up to your departure date and may owe tax on gains from a deemed sale of investments and other property. Canadian real estate and registered plans are generally excluded. Your final return may need Forms T1161 and T1243; Form T1244 can defer payment. Canadian-source income may still be taxed afterward.
Individuals
Confirm Canadian and treaty residence first. For eligible pension or plan income received while non-resident, including after departure, file a section 217 return by June 30 if it lowers Canadian tax; pay any balance by April 30. An approved NR5 for that election requires a return, unlike treaty-only NR5. File T1136 for OAS by April 30 unless the filing-year treaty exception applies.
Individuals
Dividends usually have no personal tax withheld. The gross-up raises reported income; a credit lowers tax. You owe any balance by April 30 of the following year. File then, or by June 15 if you or your cohabiting spouse or common-law partner ran an unincorporated business. If short, file, pay what you can, arrange CRA payments; interest continues. Quebec tax is separate.
Individuals · Corporations
A Canadian home sale can be tax-free when its capital gain is covered by the principal residence exemption. Business income cannot use it; selling after less than 365 consecutive days may trigger the flipping rule, subject to exceptions. Claimants must report the sale and designate the home even if exempt. Other homes, rental use, excess land or non-resident years may limit relief.
Individuals
A gain from selling a Canadian home, rental unit or housing purchase right held under 365 days is generally business income unless a listed life event caused the sale. A business loss in respect of flipped property is deemed nil. A longer hold does not guarantee capital-gain treatment; your purpose and conduct still matter. BC may charge a separate tax.
Individuals · Self-employed
If you are a Canadian tax resident, report rent from property abroad on your Canadian return even when the money stays overseas. Report a sale in Canadian dollars, using the property's Canadian tax cost to calculate any gain. Foreign tax may qualify for a credit; an inherited property or one owned before immigration needs a careful cost calculation.
Individuals
First confirm treaty residence and record where you work. Canadian tax residents report worldwide pay: employees report gross wages, while sole proprietors report net profit and pay their own tax and CPP or QPP. Canada taxes work done here; workdays abroad may also be taxed there. Ask a foreign employer about Canadian payroll and EI, check instalments, and seek a foreign refund for refundable withholding on Canadian work.
Individuals · Self-employed
Canadian residents generally add net rent after eligible expenses to other personal income, taxed at regular federal and provincial or territorial rates. Calculate it on Form T776 and report gross rent and your net share on the personal return. Genuine roommate cost sharing differs; personal costs and certain short-term rental costs cannot be deducted.
Individuals
For a Canadian resident selling a rental held as capital property, 50% of the capital gain is included in income. If you deducted building depreciation, called capital cost allowance (CCA), some may be added back in full as rental income; this is recapture. Split land and building, then report the gain on Schedule 3 and recapture on Form T776.
Individuals
A CRA instalment reminder is not a bill. Personal instalments are generally required only if net tax owing exceeds $3,000 ($1,800 in Quebec) this year and in either of the previous two years. Paying the printed amounts on time avoids instalment interest. Missed September 15? Check the test and pay any shortfall now. Quebec residents also check Revenu Québec.
Individuals · Self-employed · Corporations
Receiving your parent's property is generally not taxable income to you. The executor files a final T1 reporting income to death and any taxable gain from the property's deemed sale at death, and pays that tax from the estate. Later estate rent or sales may need a T3. The executor must get CRA clearance before distribution or risk personal liability.
Individuals
You, the holder, owe 1% of each month's highest TFSA excess. A non-resident contribution also incurs 1% monthly, even with room, until full designated withdrawal or renewed residency. Remove any continuing excess; file RC243 with the relevant schedules and pay by June 30 after the year. CRA may cancel either tax for reasonable error and prompt withdrawal, including related gains.
Individuals
Canada has no separate gift tax on a house given to a child, but you are generally treated as selling it at fair market value and may owe tax on a gain. A qualifying transfer to a spouse usually rolls over at cost. Adding a name to title depends on whether beneficial ownership actually changes; provincial transfer taxes can also apply.
Individuals
Changing a Canadian home to a rental, or a rental to your home, normally counts as a sale at fair market value even without a buyer. A principal residence exemption may shelter an accrued gain. A section 45(2) or 45(3) election can defer the deemed sale, but CCA and principal residence designations can change the result.
Individuals
Yes. You can ask the CRA to change an assessed return, or apply under its Voluntary Disclosures Program (VDP) if the omission is at least one year past the filing due date and meets the program's other conditions. An accepted VDP application may reduce penalties and interest and protect against prosecution for the disclosed issue. Any tax owing remains payable.
Individuals · Self-employed
Yes. You can prepare and file your own Canadian personal tax return; an accountant is optional. Employment slips and routine credits often fit certified tax software, and a free clinic may help if you qualify. Consider an accountant for business, rental, property sale, foreign, or missed-year issues. You remain responsible for the return you authorize.
Individuals · Self-employed
Log work and personal driving, then compare after-tax costs. A corporation that buys or leases the car pays its costs and may deduct eligible amounts; you pay tax on personal use. If you own the car and work for the corporation as an employee, you pay its costs and the corporation may pay a reasonable work-kilometre allowance. A sole proprietor pays costs and claims eligible business use.
Corporations · Self-employed
Capital cost allowance (CCA) lets you deduct the cost of income-producing equipment, vehicles and buildings over time. Put each asset in its tax class, determine when it became available for use, and claim up to that year's limit. Land is excluded. Vehicle limits, first-year incentives, rental-loss rules and possible recapture on sale can change the amount.
Individuals · Self-employed · Partnerships · Corporations
Check share rights and solvency first. A sole director signs a resolution; the corporation records and pays the dividend, monthly if desired. It reports a Canadian-resident owner's taxable dividends on a T5 by the last day of February after the calendar year. For a Quebec resident, it also files an RL-3 when annual investment income reaches $50.
Corporations
Check when you actually receive the dividend: that calendar year sets your personal return and tax, not the declaration date. January receipt usually means next year's return, though instalments may be due sooner. Paying before the corporation's year-end may trigger its dividend refund. You can declare after year-end, but dividends never reduce corporate income.
Corporations
Classify each transfer before taking it: owner pay may be salary or a dividend; loan repayments and documented expense reimbursements are different. Salary runs through payroll, with tax and applicable CPP or QPP deducted. An ordinary dividend has no payroll withholding, so reserve for corporate tax and personal tax due April 30. Include pay from your old job in that estimate.
Corporations
Usually, but a federal ban can block a purchase by a company partly owned by non-Canadians. If you or family use the home for less than that use is worth, you generally have a taxable shareholder benefit the company cannot deduct. Comparable rent may be too low for a costly home, and the company's gain gets no principal residence exemption.
Corporations
There is no fixed tax-free dividend amount in Canada. The shareholder usually pays any personal tax, separate from the corporation's tax. Your zero-tax limit depends on dividend type, province, other income and family-shareholder rules. Even a dividend with no personal tax can reduce income-tested benefits.
Corporations · Individuals
Start with the after-tax cash you need, then test whether an extra payment fits a lower personal tax bracket. A Canadian-controlled private corporation pays tax on its taxable profit whether it retains or distributes the after-tax cash; you generally pay personal tax when it pays you a dividend. Keeping profit usually defers part of the tax rather than removing it.
Corporations
You can pay a spouse or child for necessary work and deduct reasonable wages if you document the work and payment. A corporation can also pay dividends to family members who own shares with dividend rights, but tax on split income may tax those dividends at the highest rate unless an exception applies. A sole proprietor cannot pay dividends.
Self-employed · Partnerships · Corporations
Check the notice and periods; reconcile pay, remittances and slips before correcting them or appealing. If a contractor was an employee, the employer may owe worker and employer CPP or QPP contributions, EI premiums and Quebec QPIP premiums, plus interest and penalties. Sole proprietors owe personally; general partners and corporate directors can also be personally liable.
Self-employed · Partnerships · Corporations
Whether self-employed, a partnership or a corporation, first sort payments by recipient residence, work location and payment period. Generally issue T4A for resident service fees above $500, including corporate fees; deducted tax also requires a slip. A mainly construction business uses T5018 for resident trades. Non-residents' Canadian work requires T4A-NR and usually withholding. Reconcile and file missed periods; the payer owes any penalty and unwithheld tax.
Self-employed · Partnerships · Corporations
If you pay an employee, open a CRA payroll account, collect their tax forms, and calculate income tax, pension contributions, and employment insurance on each payment. Add the employer contributions and remit the total by the deadline for your remitter type. Keep pay records, file T4 slips after year-end, and check separate provincial duties, especially in Quebec.
Self-employed · Partnerships · Corporations
Check CRA room and province of employment. Pay $196,612 by December 31 for maximum next-year RRSP room, subject to other income and RRSP adjustments. Outside Quebec, $85,000.00 maxes CPP and CPP2 for full-year pensionable work: employee and corporation each pay $4,646.45, making corporate cost salary plus its share. Quebec's QPP maximum is $4,895.30 each. Age or an election may lower it.
Corporations
A Canadian corporation can pay an owner salary, dividends, or both. Salary generally creates RRSP room and pensionable earnings but brings payroll obligations. Non-eligible dividends come from after-tax profit without payroll withholding, so a BC owner should set aside cash for tax and check any instalment reminder. Compare tax to decide how much to pay yourself.
Corporations
A genuine loan from a Canadian corporation to a shareholder or connected person is generally included in the borrower's income for the borrowing year unless an exception applies. Repayment within one year after the lender's tax year-end may qualify if it is not part of a borrowing cycle. Salary, bonus or dividends owed to the borrower can legally clear the debt.
Corporations
For a non-eligible dividend from your corporation, 115% of the cash enters taxable income. Federal tax is reduced by a credit of 9.0301% of that amount, plus a provincial credit. Eligible dividends use different rates. Your bill depends on other income and province. Because tax is normally not withheld, project the full-year bill and reserve the unpaid amount from your dividends.
Corporations · Individuals
Check tax status, place of supply, and who remits. For excess, issue a credit note or accept the client's debit note; refund or credit collected excess. For a shortfall, correct the invoice and request adjustment of a filed return. Deduct eligible excess in the note period. The supplier remits unpaid tax unless the buyer self-assesses; an elected agent may report it.
Self-employed · Partnerships · Corporations
Usually no: goods you ship to a US address and most services to a non-resident client are zero-rated. Before invoicing, confirm the customer and where goods or serviced property are, then keep export and residence proof. A Canadian pickup or service on Canadian property can be taxable; the seller owes tax it should have collected.
Corporations · Self-employed
Québec customers alone do not require QST or an enterprise number. First classify sales and test general and specified QST registration; the seller owes QST it should have collected. For a Québec worker, determine the province of employment first; the employer must handle any Québec deductions and contributions due. Sole proprietors, partnerships and corporations must separately check enterprise registration against their Québec activities and business name.
Self-employed · Partnerships · Corporations
If your business is registered for GST/HST, you generally file a return for every reporting period, even with no sales. Report revenue and GST/HST collected or collectible, then subtract eligible input tax credits for tax paid or payable on business purchases. Keep supporting invoices before claiming credits. File electronically by your assigned deadline; pay any balance separately.
Self-employed · Partnerships · Corporations
Commercial property sales are generally taxable. First check the actual buyer's registration date, the seller's residence and any exemption. A registered buyer, or a buyer of a non-resident seller, usually accounts for tax directly; otherwise the resident seller collects. Landlords registered or required to register charge GST/HST on commercial rent; unregistered small suppliers generally do not. Credits depend on commercial use.
Individuals · Partnerships · Corporations
A new or substantially renovated Canadian home is generally subject to GST/HST; a resale of an occupied home is generally exempt. An eligible owner-occupier or long-term landlord may recover part of the tax through different rebates. Assignments, newly built rentals and short-term accommodation have separate rules that can create tax even when ordinary residential rent is exempt.
Individuals · Corporations
Read the notice's period, reply date and issuing agency; match questioned amounts to sales, purchase and tax records. Support input tax credits with supplier, tax and commercial-use evidence, and rebates or exports with their separate records. The registrant owes assessed net tax; a claimant may owe a denied rebate. Sole proprietors, general partners and some directors can owe personally.
Individuals · Self-employed · Partnerships · Corporations
It depends on how you sell into Canada. If you carry on business in Canada, you must register under the normal GST/HST rules once worldwide taxable sales pass $30,000. If not, but you sell digital products or any other services to Canadian consumers, you must use simplified registration once those sales pass $30,000 in 12 months.
Self-employed · Partnerships · Corporations
You may need a separate provincial sales tax registration if you sell taxable goods, software or services in British Columbia, Saskatchewan or Manitoba. Each province has different small seller, delivery and marketplace rules. HST provinces do not have a separate PST; Quebec administers QST. Check what you sell, where customers receive it and who collects tax on marketplace sales.
Self-employed · Partnerships · Corporations
A Canadian business making taxable supplies in Canada generally must register when worldwide taxable sales, including associates' sales, exceed $30,000 in one quarter or four consecutive quarters. The first affected sale depends on which test applies. Taxi and ride-sharing drivers register from the first taxable fare. Missed registration can leave tax owing even if customers were never charged.
Self-employed · Partnerships · Corporations
Pay creditors and file missing returns first. What remains goes to shareholders: genuine loan repayments and returned paid-up capital are not dividends; the rest is generally a deemed dividend. Plan clearance before distributing, dissolve through the incorporating registry, file the final T2 to the dissolution date, and close each tax account when its duties end.
Corporations
Check the incorporating registry first. A notice means you can usually cure the named filings before its deadline; a completed dissolution calls for the governing law's revival route before resuming business or collecting property or a CRA refund. The corporation still owes its tax filings and debts; directors and recipients of its property can sometimes also owe.
Corporations
Canadian rent paid to a non-resident individual generally faces 25% withholding on gross rent. With a Canadian agent and CRA-approved Form NR6, withholding can instead use net rent. File a separate section 216 return to calculate tax on net rental income and claim any refund; an approved NR6 makes that return mandatory.
Individuals
Moving abroad does not itself change a Canadian corporation's residence or CCPC status. First confirm your tax residence under any treaty, then test corporate residence and control. The corporation generally withholds and remits tax on dividends to a non-resident owner and files an NR4; correctly withheld Part XIII tax is generally the owner's final Canadian dividend tax. Other payments differ.
Corporations
If you are a non-resident when you dispose of Canadian real estate, file T2062 for capital property; request a T2062A certificate for depreciable or other non-capital property. A T2062 actual-sale notice is generally due within 10 days. Without a certificate, the buyer may withhold part of the price. A sale-year return settles CRA payments and any refund.
Individuals
Record each supported business cost once. A corporation or partnership may repay what it owes the payer and, if registered, claim a qualifying GST/HST credit. Corporations pay their income tax; partners pay tax on their shares. Sole proprietors claim the business portion on T2125, pay their own tax, and treat withdrawals as draws. Check home-office and pre-incorporation costs separately.
Self-employed · Partnerships · Corporations
Start at the last reconciled month. Gather bank, card, sales, purchase and payroll records, enter each transaction once, reconcile balances and give the preparer supported reports and unresolved items before filing. Sole proprietors and partners pay tax on business income; corporations pay their own income tax. General partners may owe partnership GST/HST, and corporate directors may owe unremitted payroll deductions or GST/HST.
Self-employed · Partnerships · Corporations
Yes. Canadian sole proprietors, partnerships and corporations can keep their own books in a spreadsheet or software; no bookkeeper is required. Start with sales, expenses and proof, then reconcile bank and tax balances. Proprietors owe business taxes personally; partners pay tax on their shares; corporations pay corporate tax. Partners, directors and non-arm's-length property recipients may also owe specified business tax debts.
Self-employed · Partnerships · Corporations
Yes. Dividends from your corporation can support a Canadian mortgage, but the lender decides what counts. Ask first which years and records it needs. For a new application, prepare T1s, T5s, notices of assessment and corporate statements; self-employed applicants may need two years of notices. At renewal, ask your current lender if updated proof is required.
Corporations · Self-employed
For Canadian-dollar tax reporting, translate each sale when it arises, then reconcile the marketplace payout to gross sales, refunds, fees, tax and any funds held back. Record exchange differences separately. A net bank deposit is not the sales figure. Self-employed sellers report income and expenses on T2125; corporations use their financial statements and T2.
Self-employed · Partnerships · Corporations
A Canadian corporation normally needs a year-end balance sheet, income statement and retained earnings information to complete its T2 using GIFI codes. The CRA does not require a CPA to prepare them. A separate audit, review or compilation report depends on corporate law, shareholders and anyone receiving the statements, such as a lender.
Corporations
Not sure which rules apply?