If you own a small business in Canada, there are several important deadlines from Canada Revenue Agency (CRA) that you should be aware of. Failure to meet these requirements can result in the penalties and interest assessed by CRA.
Payroll
Canada Pension Plan (CPP), Employer Insurance (EI) and Income Tax withholdings along with the appropriate employer portion of CPP and EI are due on the 15th of the month following the date which the wages are paid.
T4, T4A and T5 slips are reported on a Calendar year basis. These filings are due along with the related summary are due by February 28th of the year following.
Instalments
If you are self employed and owed over $3,000 in Income Tax in the previous tax year, you will be subject to personal tax instalment payments. Here are the dates:
- 1st instalment: March 15
- 2nd instalment: June 15
- 3rd instalment: September 15
- 4th instalment: December 15
Tax Filing
You are required to file you Income Tax return for the previous year by April 30th of the following year. Self-employed individuals and their spouses or common law partners have until June 15th to file their returns.
Corporations
Corporations may have to pay instalment payments for Corporate Income Tax by the last day of the month or each quarter depending on requirements.
For Canadian Controlled Private Corporations (CCPCs) claiming the small business deductions, the corporate tax payable deadline is Three Months after the tax year end.
Corporations must also file a T2 Corporate Income Tax return no later than Six Month after the tax year end.
Reminder
It is important that you file required returns and remit payments on time. If you do not file and remit on time, penalties apply, and interest is charged on unpaid taxes and penalties.
To help you remember important business dates, you can use the Business Tax Reminders mobile app found here: CRA Mobile App
Due Dates
When the filing due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, they consider your payment to be on time if they receive it on the next business day. Your return is considered on time if they receive it or if it is postmarked on or before the next business day.
GST/HST filing and payment deadlines
The filing deadline will be different depending on your GST/HST filing period.
- Monthly – The filing and payment deadline is one month after the end of the reporting period.
- Quarterly – The filing and payment deadline is one month after the end of the reporting period.
- Annually (non-December 31 reporting period) – the filing and payment deadline is three months after the end of the reporting period.
- Annually (December 31 reporting period) – the payment deadline is April 30th, and filing deadline is June 15th.
Now you have all you information you need to stay in compliance with Canada Revenue Agency.
If you have further questions, please contact us and we will be happy to help.