Here are some common questions small business owners have about taxes in Canada:
It is a unique identifier issued by the Canada Revenue Agency (CRA) to businesses who are registered for the goods and services tax (GST) and/or the harmonized sales tax (HST).
Deadline for filing a sole proprietor tax return is June 15 and for incorporated small businesses it is 6 months after the year end.
If your small business earns more then $30,000 in a single calendar quarter, you have to register for GST/HST with CRA.
You can deduct business expenses that were incurred to generate business income and are reasonable and necessary. This includes things like rent, salaries, advertising, office supplies, and vehicle expenses.
Yes, you can claim home office expenses if you use a portion of your home exclusively for business purposes.
Some tax credits available for small businesses in Canada include the small business deduction, the scientific research and experimental development (SR&ED) tax credit, and the apprenticeship job creation tax credit.
Payroll taxes, such as Employment Insurance (EI) and Canada Pension Plan (CPP) contributions, must be deducted from your employees’ paycheques. You, as the employer, are also required to contribute a portion of these taxes. The amount of these deductions depends on the employee’s income and the prevailing tax rates.
It’s important to note that the rules and regulations around taxes in Canada can be complex and may change over time. It’s best to seek advice from a professional accountant to ensure you are complying with all relevant regulations.