Taxation Info-Guide

The following Info-Guide is a document designed to help you navigate through the federal and provincial government programs and services available to individuals regarding taxation to start up a business in Saskatchewan.  Although many of your questions will be answered in this document, this list is, by no means, exhaustive. Further information on any of these programs or services can be obtained by calling the numbers listed under the program descriptions; by visiting the Web sites listed under the program descriptions; by calling the Canada-Saskatchewan Business Service Centre (CSBSC) and speaking with one of our Information Officers; by visiting the CSBSC office in person; or by visiting the Canada-Saskatchewan Business Service Centre Web site.

PLEASE NOTE: 
Although the CSBSC has compiled the following information as provided by our partners, we are not a delivery agency for any of these programs and/or services.

TABLE OF CONTENTS

1. Start-up Business/New Employer Taxation Information
2. Income Tax Information for Registered or Incorporated Businesses
3. Income Tax Information for Not-for-profit Incorporated Businesses
4. Special Tax Treatments
5. Municipal Taxation

1.  Start-up Business/New Employer Taxation Information

Obtaining a Provincial Sales Tax (PST ) Vendor's License/Registration Number
The Provincial Sales Tax is a tax based on the retail price of most goods. Businesses that sell goods and taxable services are required to become licensed as a retailer, and are responsible for collecting and remitting tax on a regular basis. Businesses that do not sell goods or taxable services are required to become registered as a Registered Consumer. Businesses are required to pay tax on the purchase of equipment, materials and supplies used to operate a business.

There is no charge for obtaining a Vendor's License or a Registered Consumer permit number.

The PST applies to the purchase or rental of new and used tangible personal property. The following services are also subject to PST: telecommunication services, cable television, telephone answering services, accommodation, repair or installation labour, legal services, laundry and dry-cleaning services, security and investigation services, credit reporting and account collection services, real estate commissions, commercial building cleaning services, accounting services, engineering and architectural services, veterinary services, computer services, employment placement services and advertising services.

A series of tax bulletins on specific types of businesses is available at the  Tax Bulletins, Forms and Information Web site. 

For further information regarding Vendor's Licenses or Registration Numbers, contact the Saskatchewan Department of Finance, Revenue Division toll-free at 1-800-667-6102 or visit the  Provincial Sales Tax Web site. 

Business Number (BN)
The Business Number (BN) is a federal numbering system which is assigned to a business (one business, one number) to deal with the Canada Revenue Agency (CRA).

Not all businesses require a Business Number (BN). You only need a BN if you require any one of the following business accounts:

• GST/HST
• Payroll
• Corporate income tax
• Import/Export

You can register for a Business Number (BN) and CRA accounts on-line ( http://www.cra-arc.gc.ca/tax/business/topics/bn/menu-e.html), by calling the Business Enquiries line toll-free 1-800-959-5525,  by completing Form  RC1 Request for a Business Number   and submit it by fax to 306-975-4418 (Saskatoon) or mail it to your nearest Tax Services Office (340 - 3rd Avenue North, Saskatoon S7K 0A8 or 1955 Smith Street, Regina S4P 2N9). For further information see the document Business Number - BN.

Goods and Services Tax (GST)
The Goods and Services Tax (GST) is a tax that applies at a rate of 5% to the supply of most goods and services in Canada. Most persons and organizations engaged in commercial activities in Canada who have annual worldwide, taxable sales of more than $30,000 must register for and collect the Goods and Services Tax/Harmonized Sales Tax (GST/HST).

Taxi and limousine operators, for their taxi operations, and non-resident performers selling admissions to seminars and other events must register for the GST/HST, even if they are small suppliers.

The GST/HST applies to most transactions throughout the production and marketing process. Business and organizations required to, or who voluntarily choose to, register for the GST/HST are referred to as registrants.Businesses must register to obtain a Business Number with a GST/HST account.

Registrants collect the GST/HST on most of their supplies, and pay the GST/HST on most purchases they make to operate the business. Registrants can claim a credit, called an input tax credit (ITC), to recover the GST/HST they paid or owe on the purchases they will use in their commercial activities. When they complete their GST/HST return, they deduct the amount of the credit from the GST/HST they collected. If they pay more than they collect, they can claim a refund.

Internet Publications
GST/HST Guides  
GST/HST Forms  
GST/HST News  

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Revenue Agency  Web site or see the document ARCHIVE - Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

GST section and Treaty and Status Indian People
In some instances GST is not charged to Treaty and Status Indian People. For additional information, refer to the CRA Web site for the guide  RC4022 General Information for GST/HST Registrants   (Under Table of Contents, see Indians on Page 43), Publications B-039R GST Administrative Policy - Application of GST to Indians , contact CRA at 1-800-959-8296 or see the document GST/HST and Indians

Excise Taxes and Excise Duties
When certain goods are manufactured in Canada, excise tax is payable at the time the goods are delivered to the purchaser. When certain goods are imported, excise tax is payable by the importer, at the time the goods are imported.

Excise duties are charged on spirits, beer, and tobacco products manufactured in Canada. The Excise Act sets out the rates of duty for these goods.

For further information contact Canada Revenue Agency toll-free at 1-866-330-3304 (for Excise Tax information); 1-877-432-5472 (to obtain Excise Tax forms); visit the  Excise duty Web site or see the document Excise Taxes.

Employer Visits Program
Canada Revenue Agency (CRA) officials are available, on request, to visit employers on their own premises. This service provides new employers with a chance to discuss recording, withholding, or reporting employee earnings, tax, Canada Pension Plan contributions, or Employment Insurance premiums.  There is no charge for this service.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Revenue Agency Web site or see the document Employer Visits Program.

Social Insurance Number (SIN)
The Social Insurance Number (SIN) is a nine-digit number that you need to work in Canada or to have access to government programs and benefits.

As an employer, you must:

1. Request the Social Insurance Number (SIN) card of new employees within three days of their starting employment.
2. Verify and record the expiry date of all SIN cards beginning with a 9.
3. Protect your employees’ personnel records, especially SINs.
4. If you suspect that a SIN is being used fraudulently, inform Service Canada.

For further information visit the  Employers and Social Insurance Numbers Web site or contact Human Resources Centre of Canada toll-free 1-800-206-7218 (For a complete list of local Human Resources Centers of Canada in Saskatchewan see the document Service Canada Centres - Supplement for Saskatchewan or check the government listings in the blue pages of your telephone directory.) You may also visit the Web site  Contact Us - Saskatchewan  for contact Information or see the document Social Insurance Number - SIN .

Payroll Deductions
The Canada Revenue Agency (CRA) offers the Payroll Deductions Online Calculator or Tables on Diskette (TOD) to calculate payroll deductions for all pay periods, provinces (except for Quebec), and territories based on the information you provide.

Tables On Diskette (TOD) is a stand-alone computer program that calculates Canada Pension Plan (CPP); Employment Insurance (EI); and federal, provincial (except Quebec) and territorial tax deductions for all pay periods. TOD is usually updated, as tax changes occur, for January 1 and for July 1.

The Canada Revenue Agency (CRA) has also introduced the  Payroll Deductions Online Calculator , the online version of the T4143, Tables on Diskette.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Customs and Revenue Agency (CCRA) - Tables on Diskette for Windows (WinTOD)  Web site or see the document  Payroll Deductions

Income Tax Returns: T1 General Income Tax and Benefit Return
All individuals use a return to report income and determine their income tax obligations under the laws of Canada and of all provinces and territories, except Quebec. (Quebec residents must use a separate provincial return for their provincial income taxes.) Non-incorporated self-employed individuals may also require a supplementary guides, to determine their personal income tax obligations.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  T1 General Returns  Web site; or see the document Income Tax Returns - T1 General Income Tax and Benefit Return.

Canada Revenue Agency Forms and Publications -- Internet Ordering Service
The Canada Revenue Agency (CRA) provides Web access to many of their forms and publications. Each document is available in several formats and can be viewed and printed or downloaded to the client's computer. In addition, all forms and publications can be ordered on line and subsequently mailed to the client.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Ordering forms and publications  Web site to order forms and publications or see the document Canada Border Services Agency Forms and Publications -- Internet Ordering Service.

Guide for Canadian Small Businesses
The Guide for Canadian Small Businesses provides useful information on a broad range of issues, such as how to set up a business, the GST/HST, excise taxes and duties, payroll deductions, and income tax.

The new guide contains information on:

• setting up a business;
• the goods and services tax/harmonized sales tax;
• excise taxes and duties;
• payroll deductions and remittances;
• income tax;
• audits
• objections and appeals; and
• how to get information from the CRA.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Guide for Canadian Small Businesses Web site or see the document  Guide for Canadian Small Businesses.

Services of the Income Tax Rulings Directorate
The Income Tax Rulings Directorate is the centre of income tax expertise within the Canada Revenue Agency (CRA); it is responsible for issuing advance income tax rulings and technical interpretations upon which its clients can rely. The Directorate's staff is well educated, trained and experienced and capable of effectively dealing with any income tax issue that arises.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Revenue Agency Web site or see the document Services of the Income Tax Rulings Directorate.

Workers' Compensation
Saskatchewan Workers' Compensation Board (WCB) is an independent body created by provincial legislation to administer a workplace injury and illness compensation system on behalf of workers and employers.  The Workers' Compensation Act applies to all employers and workers in Saskatchewan from the time they begin employment. 

Workers' compensation is a no-fault system that protects employers and workers against the result of work injuries. The system has brought stability by providing coverage at a competitive cost and protecting workers and employers against the risks and uncertainties of litigation.

A Guide to the Saskatchewan Workers’ Compensation Board for Business (PDF) has been developed to help employers better understand WCB. 

For more information contact the Saskatchewan Workers' Compensation Board toll-free at 1-800-667-7590, visit the  Saskatchewan Workers' Compensation Board  Web site or see the document  Saskatchewan Workers Compensation Board (WCB) .

2. Income Tax Information for Registered or Incorporated Businesses

GST Returns
Most businesses registered for the GST must file a return on a quarterly basis. However, if your business has annual revenues of $500,000 or less, you can file your GST returns annually. In this case, if your net tax paid in the previous year was greater than $1,500, you pay four tax instalments based on the net tax you paid in the previous year, and an estimate of the current year's net tax. At the end of the year, you file one return that reports your transactions.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Revenue Agency  Web site or see the document ARCHIVE - GST/HST Returns.

Statutory Filings Under the Canada Business Corporations Act - CBCA
The Canada Business Corporations Act requires that certain statutory filings be made in order for a corporation to be in good standing and compliance. If the filings are not made in accordance with the act, penalties and fines may be incurred or the corporation may be dissolved.

For further information contact Industry Canada - Corporations Directorate toll-free at 1-866-333-5556 or see the document Statutory Filings under the Canada Business Corporations Act (CBCA) .

Exemptions From Filing Requirements of the Canada Business Corporations Act
Under the Canada Business Corporations Act, federal corporations are obliged to file certain documents with the Corporations Directorate every year. Companies can, however, apply for exemptions from filing certain documents.

Client information kits on these exemptions are available from any Corporations Canada office or at the  Information Kits Web site.

For further information contact Industry Canada - Corporations Directorate toll-free at 1-866-333-5556 or see the document Exemptions From Certain Requirements of the Canada Business Corporations Act - CBCA.

Income Tax Returns: The T2-Corporation Income Tax Return & the T2-Short Return
Under the Income Tax Act, all corporations have to file a T2 or T2 Short return, even if there is no tax payable. This includes non-profit organizations, tax-exempt corporations inactive corporations. The only exception to this rule is a corporation that was a registered charity throughout the year.

Visit the T2 - Corporation Income Tax Return Web site.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications) or see the document Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return.

Objections and Appeals - Income Tax/Excise Tax
This document applies to anyone who wants to object to an assessment of income tax, GST/HST or excise tax. Certain restrictions apply and time limits are imposed.

The Income Tax Act provides for a formal objection process for taxpayers who disagree with an income tax assessment. The Excise Tax Act provides a similar process for persons who disagree with a GST/HST or excise tax assessment.

If you do not understand or agree with an assessment or reassessment notice, you should first call or visit the Client Services Section of your Tax Services Office or write to the Tax Centre that processed your return. The Canada Revenue Agency (CRA) resolves many problems with assessments in this manner.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications) or see the document Objections and Appeals - Income Tax Act/Excise Tax Act.

Finance and Taxation Information for Enterprises
Statistics Canada maintains financial and taxation information on incorporated enterprises operating in Canada. Topics included in these records are enterprise financial and taxation statistics: assets, liabilities, shareholder's equity, revenues, expenses, profits, and retained earnings, statement of change in financial position, reconciliation of profits to taxable income, taxable income and income taxes payable.

For further information contact Statistics Canada toll-free at 1-800-263-1136 or see the document Finance and Taxation Information for Enterprises.

Saskatchewan Department of Finance - Corporations Tax Branch
Any corporation doing business in Saskatchewan, must file a separate income tax return with the provincial Department of Finance. Several exemptions from filing exist for corporate filings.

For further information regarding Saskatchewan Department of Finance - Corporations Tax Branch, contact the Saskatchewan Department of Finance's Customer Service Centre toll-free at 1-800-667-6102.

TeleReply
TeleReply is an electronic reply service for payroll deductions. Employers can inform the CRA by phone if they have no payroll deductions remittance to make during a remittance period.

TeleReply is available across Canada to employers who meet all of the following conditions:

• You had no employees who are subject to payroll deductions.
• You want to report a nil remittance.
• The correct name and Business Number are on the printed remittance voucher we sent you.

TeleReply is fast, free, and easy to use. This phone service is available every day except Sundays and statutory holidays.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  TeleReply for payroll deductions for payroll deductions Web site or see the document ARCHIVE - TeleReply.

3. Income Tax Information for Not-for-profit Incorporated Businesses

Non-profit Organization - NPO - Information Return
The publication entitled  T4117 Income Tax Guide to the Non-Profit Organization (NPO) Information Return  shows users how to complete the return line by line. The form is available online -  T1044 Non-Profit Organization (NPO) Information Return .

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the  Canada Revenue Agency Web site or see the document Non-profit Organization - NPO - Information Return.

4. Special Tax Treatments

Prototype Equipment Sales Tax Exemption Program
The province provides a sales tax exemption to a manufacturer purchasing materials to manufacture prototype equipment used for research and development.

For further information contact the Revenue Division, Saskatchewan Finance toll-free at 1-800-667-6102 or 306-787-6645 (Regina) or see the document Prototype Equipment Sales Tax Exemption Program.

Saskatchewan Investment Tax Credit For Manufacturing and Processing
The Saskatchewan Investment Tax Credit (ITC) for Manufacturing and Processing (M&P) is available to all M&P corporations filing a T2 Corporation Income Tax (CIT) Return with some allocation of taxable income to Saskatchewan. It is a non-refundable income tax credit which is designed to encourage plant and equipment investment for use in M&P activities in Saskatchewan. The ITC applies as a percentage of the total capital cost of eligible building and machinery and equipment purchases.

For further information contact Taxation and Intergovernmental Affairs Branch, Saskatchewan Finance toll-free at 1-800-667-6102 (ext. 6722) or 306-787-6722 (Regina) or see the document Saskatchewan Investment Tax Credit for Manufacturing and Processing.

Saskatchewan Manufacturing and Processing Profits Tax Reduction
The Revenue Division provides information and administers all aspects of the Saskatchewan Manufacturing and Processing Profits Tax Reduction. The province will provide a tax reduction to firms in the manufacturing and processing industry. The Saskatchewan Corporate Income Tax rate will be reduced by as much as 7% based on the allocation of income to the province. The tax reduction is effective July 1, 1995.

For further information contact the Revenue Division, Saskatchewan Finance toll-free at 1-800-667-6102 or 306-787-7773 (Regina) or see the document Saskatchewan Manufacturing and Processing Profits Tax Reduction.

Information for Status Indians
Canada Revenue Agency (CRA) has prepared information on tax benefits as well as general information regarding the application of the exemption under section 87 of the Indian Act and its effect on income tax, the goods and services tax/harmonized sales tax (GST/HST) and excise taxes.  Visit their Web site or for additional information call CRA toll-free 1-800-959-5525.

Scientific Research and Experimental Development (SR&ED) Program
The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes.  Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.

For further information contact Canada Revenue Agency at 1-800-959-5525; visit the  Canada Revenue Agency Web site or see the document Scientific Research and Experimental Development (SR&ED;) Program.

5. Municipal Taxation

When seeking information regarding taxation for small businesses, contact your local city hall, town or village office or rural municipal office regarding local taxation requirements.

Links to other Info-Guides:

Aboriginal Info-Guide

Business Start-up Info-Guide

Employment and Training Info-Guide

Exporting Info-Guide

Importing Info-Guide

E-Business Info-Guide

For further information regarding taxation, contact the

Canada-Saskatchewan Business Service Centre
#2 - 345 3^rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone: 306-956-2323
Toll-Free: 1-800-667-4374
E-mail: saskatchewan@canadabusiness.ca
Web site:  http://www.canadabusiness.ca/sask/

THE INDIVIDUAL/BUSINESS/CORPORATION/PARTNERSHIP (HEREINAFTER REFERRED TO AS THE CLIENT) ACKNOWLEDGES AND UNDERSTANDS THAT THE CANADA-SASKATCHEWAN BUSINESS SERVICE CENTRE DOES NOT WARRANT OR REPRESENT THE ACCURACY, SUITABILITY OR APPLICABILITY OF THIS INFORMATION AND ASSUMES NO RESPONSIBILITY OR LIABILITY FOR THE USE THEREOF BY THE CLIENT AND ANY THIRD PARTIES AND THAT THE INTERPRETATION, USE AND APPLICATION OF SUCH INFORMATION SHALL BE THE CLIENT'S SOLE RESPONSIBILITY.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.