Do you have questions about filing as a business for the first time? The CRA is here to help.
The Canada Revenue Agency (CRA) knows that it can be intimidating for new businesses to file their first tax return. That’s why we aim to help small businesses by ensuring they have the information and guidance they need to stay organized and to understand and meet their tax obligations.
Here’s what you need to know if you are a new business and have questions about filing your income tax and benefit return or your T2 corporation income tax return:
Businesses: Looking for ways to better understand and meet your tax obligations? The CRA is here to help!
The Canada Revenue Agency (CRA) is committed to helping small and medium businesses by ensuring they have the information and guidance they need to stay organized and to better understand and meet their tax obligations.
Here’s what you can do to make sure you’re doing everything right:
File and pay on time
Organize your records and documents
Resources for you – the CRA is here to help
Important reminder for businesses filing SR&ED claims
The Canada Revenue Agency (CRA) has observed a recent increase in Scientific Research and Experimental Development (SR&ED) claims containing false and/or fraudulent information. While the vast majority of claims filed for SR&ED tax incentives are compliant with filing requirements, the CRA is reminding you to make sure the information provided in your claim, including information submitted on your behalf by a representative, is valid.
What is SR&ED?
The SR&ED Tax Incentive Program is the largest Government of Canada program supporting research and development in Canada, providing more than $3 billion in tax incentives to over 16,000 businesses annually.
Need to contact the CRA about your business taxes? Here's some guidance on how to get the information you need.
High call volumes to the Canada Revenue Agency's (CRA) Business Enquiries Line can result in long wait times to reach a client service representative.
Here are some quick and easy alternatives to finding the information you need (instead of calling).
Check Canada.ca: We're improving the information on our web pages to make it easier for Canadians to find what they need online. This includes services and information for:
business number registration;
business income tax;
payroll;
GST/HST for business; and much more.
Empower yourself to do your own taxes
Learn about your taxes is a new self-guided online course from the Canada Revenue Agency (CRA) for youth, new residents, and individuals who have never done their taxes before. It is also a great learning tool for anyone who needs a refresher on taxes. And, it includes lesson plans for educators who want to use the course in the classroom.
Canadians have told us they need help understanding how to do their taxes. Following public consultations, the CRA also identified a knowledge gap among young Canadians about the role and value of taxes. This free online learning tool will help all Canadians gain confidence in doing their taxes on their own.
Confirm a representative using My Account or My Business Account
This tax season, there’s a new way to confirm authorized representatives using My Account or My Business Account. Whether you’re an individual or a business, this easy, two-step digital process will help you protect your tax information and make authorizing new representatives more efficient and secure.
How to confirm a new representative using My Account or My Business Account?
Follow these steps to confirm a new authorized representative or to accept changes to the authorization level of an existing representative using the new “Confirm my Representative” service.
Are you a peer-to-peer seller? Here’s what you need to know
A peer-to-peer (P2P) transaction involves the selling of goods from one person or party directly to another. You may be taking part in P2P selling if you are connecting with buyers through digital platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay or Amazon).
As a resident of Canada, you must report your income from all sources on your income tax return. This includes any income you earn inside and outside of Canada, whether through P2P or other transactions. If you paid foreign income tax, you could be eligible for a tax credit.
Do you work in the sharing economy? Here’s what you need to know
For Uber and Lyft drivers, you must report all income earned from driving your vehicle for ridesharing purposes, including tips, on your income tax and benefit return. You must also complete Form T2125, Statement of Business or Professional Activities, and file it with your income tax return.
You must collect and pay the GST/HST to the CRA on all ridesharing fares.
For Airbnb and accommodation sharing, you must pay income tax on all income you receive from accommodation sharing. Also, your income from accommodation sharing may be considered rental income from a property or a business. The income you receive from renting a property or from accommodation sharing must be reported on your income tax and benefit return.
For GST/HST purposes, accommodation sharing falls under short-term accommodation: renting for a period of continuous occupancy of less than one month. Short-term accommodation is not exempt from GST/HST like rentals of residential premises for periods of continuous occupancy of one month or more.
Small and medium business audits: What you need to know
Most taxpayers comply with the tax laws in Canada, but some don’t. That’s why audits are an important part of the Canada Revenue Agency’s (CRA) range of activities that are in place to make the tax system fair for everyone.
The CRA recognizes the economic challenges that have resulted from the COVID-19 pandemic and the effect that the audit process can have on businesses. For this reason, we continue to proceed carefully to protect businesses and the broader economy that remains vulnerable due to the pandemic.
The CRA has information to help answer your questions about the audit process. The information below also applies to audits of COVID-19 subsidies.
Valuing your cryptocurrency
How you value your cryptocurrencies depends on whether they are considered capital property or inventory. When cryptocurrencies are held as capital property, you must record and track the cost when you acquired them, so that you can accurately report any capital gains when you sell them.
If the cryptocurrencies are considered to be inventory, you can generally value it based on:
the cost of each item in the inventory when it was acquired; or
its fair market value at the end of the year.
Reporting reminder for business: Declare your COVID-19 subsidies
If you received one or more emergency subsidies, the amounts you received are considered government assistance and are taxable. You must report the subsidies amounts on your income tax or information return for the tax year (fiscal period) in which you are considered to have received them. The wage and rent subsidies are generally considered to have been received on the last day of the claim period they relate to.