Taxation (Provincial and Federal)

• Provincial Sales Tax
• Harmonized Sales Tax - HST
• Income Tax (Federal)
• Expense Deductions
• Goods and Services Tax - GST
• Excise Tax
• Business Number
• Corporation Capital Tax
• Aboriginal Business and Taxes

Provincial Sales Tax

For information on the Provincial Sales Tax in your province, click on a province.

British Columbia - http://www.rev.gov.bc.ca/ctb
Saskatchewan - Provincial Sales Tax - PST - Information Services
Manitoba -  Taxation Info-Guide
Ontario -  Taxation Info-Guide
Quebec - http://www.revenu.gouv.qc.ca/eng/entreprise/taxes/tvq_tps/info.asp
Prince Edward Island - Provincial Sales Tax - PST

Harmonized Sales Tax - HST

The governments of Canada, Nova Scotia, New Brunswick, and Newfoundland and Labrador harmonize provincial retail sales taxes (PST) in these provinces with the Goods and Services Tax (GST). This single value-added tax is called the Harmonized Sales Tax (HST). For further information, see document Goods and Services Tax and Harmonized Sales Tax - GST/HST.

Income Tax (Federal)

If you conduct business as a proprietorship or a partnership, report your share of gross and net profits (or losses) for the business' fiscal period on your individual tax return (T1). For further information on T1 tax forms, see document Income Tax Returns - T1 General Income Tax and Benefit Return.

For an incorporated company, file a corporation tax return (T2) within six months of the end of the corporation's fiscal period. For further information on T2 tax forms, see document Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return.

(Return to the top of this page)

Expense Deductions

As a rule, you can deduct any reasonable expense you incur to earn business income. The expenses you can deduct include any goods and services tax (GST) you incur on these expenses unless you claim an input tax credit on these expenses. Therefore, enter only the business portion of expenses on the form. In addition, you cannot claim expenses you incur to buy capital property.

• advertising
• bad debts
• delivery, freight and express costs
• fuel costs
• insurance
• interest on money borrowed to run your business
• maintenance and repairs
• management and administration fees
• meals and entertainment (50% of the amount you incur, or an amount that is reasonable in the circumstances, whichever is less)
• motor vehicle expenses (including license and registration fees, fuel costs, insurance,interest, maintenance and repairs and leasing costs)
• telephone and utilities
• disability related modifications, devices and equipment
• expenses for disability-specific computer software and hardware attachments
• computer leasing costs
• other leasing costs
• small tools (i.e. less than $200 cost per tool)
• convention expenses (maximum two conventions a year)
• capital cost allowance
• allowance on eligible capital property (e.g. goodwill, franchise)
• business use of home expenses.

(Return to the top of this page)

Goods and Services Tax - GST

Canada Revenue Agency administers the Excise Tax Act - Goods and Services Tax and the Excise Act - Excise Tax and Duties. For further information, see document Excise Taxes and Excise Duties.

Excise Tax

You must be licensed for Excise Tax if you are manufacturing goods subject to Excise Tax and your sales exceed $50,000.00 in a calendar year. Some examples of goods subject to Excise Tax are clocks, watches, jewellery, gasoline and tobacco. For further information, see document Excise Taxes and Excise Duties.

(Return to the top of this page)

Business Number

For information, see document Business Number - BN.

For a list of Canada Revenue Agency's Business Window offices, see document Business Window - Supplement.

• Registration for Canada Revenue Agency's four major business accounts
• information about any one of these accounts, including recent payments and account balances.

The benefits of the BN are less paperwork, more efficiency and reduced costs for both business and government.

(Return to the top of this page)

Corporation Capital Tax

For information on Corporation Capital Tax in your province, click on the province or territory where you want to incorporate.

For information in Ontario, contact the Corporations Tax Branch, Ministry of Finance at 1-800-263-7965.

For information in New Brunswick, contact the Revenue Division, Department of Finance at (506) 453-2138.

Yukon - http://www.cbsc.org/yukon/english/taxation.cfm  
Northwest Territories - Finance and Taxation Information for Enterprises
Nunavut -  Finance and Taxation Information for Enterprises
British Columbia - http://www.smallbusinessbc.ca/bizstart-corpTax.php
Alberta -  Tax and Revenue Administration (TRA)
Saskatchewan -  Corporation Capital Tax Information Services
Manitoba - Taxation Info-Guide
Quebec - http://www.revenu.gouv.qc.ca/eng/entreprise/impot/societes/info.asp
Nova Scotia - Taxation Info-Guide
Prince Edward Island - INFO-GUIDE - Taxation in PEI
Newfoundland and Labrador - Taxation Info-Guide

(Return to the top of this page)

Aboriginal Business and Taxes

Tax exemptions for aboriginal people date back to 1876, when the federal Indian Act was established. However, only Aboriginal people who are registered under this Act are exempt from tax - and then only under specific conditions. Some of the taxes that an Aboriginal business may be exempt from are the Goods and Services Tax (GST) or the Harmonized Sales Tax, Provincial Sales Tax (PST) and Income Tax. For further information on this subject, please visit the Canada Revenue Agency Web site.

(Return to the top of this page)