Tax Tip - Businesses have different filing and payment deadlines - here is a quick reference to help you stay organized

OTTAWA, ON, Feb. 28, 2024 /CNW/ - Understanding the tax filing and payment deadlines for Canadian businesses can be tricky since different businesses have different deadlines. When you factor in GST/HST responsibilities, it can be confusing. Use this tax tip as a quick reference point for important dates as you manage your tax affairs.

Businesses with payroll accounts

Your remitter type sets your remitting frequency and affects your due dates. Generally, it is based on your average monthly withholding amount (AMWA) from two calendar years ago. The due dates apply to both:

• Remitting periods when you pay or give remuneration
• Reporting a nil remittance when you have seasonal workers or no employees

For information on remitter types and when to remit (pay), go to canada.ca/payroll-remit. 

Self-Employed Individuals

If in 2023, you or your spouse or common-law partner were self-employed, you have until June 15^th, 2024, to file your income tax and benefit returns. If you have a balance owing for 2023, it must be paid by April 30, 2024. When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day.

For some self-employed individuals, tax payments may need to be made in instalments.

For farming and fishing income, instalment payments are due December 31.

For business, professional or commission income, instalment payments are due:

• March 15
• June 15
• September 15
• December 15

 To learn more about payment deadlines, please go to Payment Due Dates.

Corporations

Corporations are required to file their T2 corporate income tax return within six months of their tax year ending. Here are some examples of filing due dates based on different tax year end dates:

• If your corporation's tax year ends March 31, your filing due date is September 30
• If your corporation's tax year ends September 23, your filing due date is March 23
• If your corporation's tax year ends November 30, your filing due date is May 31

When a filing due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return must be postmarked or received by the CRA on or before the next business date to be considered on time.

Each corporation selects its tax year end when it incorporates. Common choices are the last day of December, March, June, and September.

Payments – Corporations

Corporations generally have to pay income tax in monthly or quarterly instalments if their total tax is more than $3,000. This total includes taxes under specific parts of the Income Tax Act:

1. Part I – Tax on income
2. Part II.2 – Tax payable on repurchases of equity (proposed)
3. Part VI – Tax on capital of financial institutions
4. Part VI.1 – Tax on corporations paying dividends on taxable preferred shares
5. Part XII.1 – Tax on carved-out income
6. Part XII.3 – Tax on investment income of life insurers
7. Part XIII.1 – Additional tax on authorized foreign banks

For more information on the specific parts of the Income Tax Act, please visit the Corporation Instalment Guide 2024.

The tax amount a corporation owes for a tax year is generally due within two months after the end of the tax year. For Canadian Controlled Private Corporations (CCPCs), it's due within three months, provided certain conditions are met which can be found here.

For more information on finding your corporations payment deadline, please visit Determining your corporation's tax year.

Tax instalment payments are generally due on the last day of every month or quarter of a corporation's tax year. Eligible small-CCPCs can make quarterly instead of monthly tax instalment payments. Here is an example for quarterly instalments:

• If a corporation's tax year begins on October 10, 2024, the first instalment payment is due
  by January 9, 2025
• The following payments are due on April 9, and July 9, and October 9, 2025

When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your payment is considered on time if the CRA receives it on or before the next business day.

GST/HST

Businesses in Canada that are registered for GST/HST must file GST/HST returns. The filing deadline will be different depending on your GST/HST filing period.

Filing and Payment – GST/HST

Monthly filers:
Filing deadline	Payment deadline	Example
One month after the end of the reporting period	One month after the end of the reporting period	Reporting period end: July 31 Filing deadline:  August 31 Payment deadline:  August 31

Quarterly filers:
Filing deadline	Payment deadline	Example
One month after the end of the reporting period	One month after the end of the reporting period	Reporting period end: March 31 Filing deadline:  April 30 Payment deadline:  April 30

Annually (except self-employed individuals with a December 31^st fiscal year end):
Filing deadline	Payment Deadline	Example
3 months after fiscal year end	3 months after fiscal year end	Reporting period end: August 31 Filing deadline:  November 30 Payment deadline:  November 30

Annually (self-employed individuals with a December 31^st fiscal year end):
Filing deadline	Payment deadline	Example
June 15	April 30	Reporting period end: December 31 Filing deadline:  June 15 Payment deadline:  April 30

In the case of an annual reporting period, it is typically required that you submit your tax return and make any outstanding payments no later than three months following the end of your fiscal year.

However, there are exceptions to this rule. If you meet all of the following conditions:

1. You are an individual with business income for income tax purposes
2. You file annual GST/HST returns
3. Your fiscal year-end falls on December 31

In such circumstances, your GST/HST payment deadline is extended to April 30. It's important to note that even though your payment is due by April 30, you have until June 15 to complete the filing of your GST/HST return.

As a GST/HST registrant, you may have to make quarterly instalment payments if you are an annual filer and if your net tax for the previous fiscal year was $3,000 or more, and your net tax for the current fiscal year is $3.000 or more, even if you have a rebate that reduces your amount owing to less than $3,000.

GST/HST instalment payments are due within one month after the end of each of your fiscal quarters. Here is an example for quarterly instalments:

• You have a December 31 fiscal year end. Your net tax for 2023 fiscal year was $4,000 and you expect your net tax for 2024 fiscal year to be at least that much. You have to make instalment payments throughout your 2024 fiscal year. Your instalment due dates are as follows:

Fiscal Quarter	Due Date
January 1 – March 31, 2024	April 30, 2024
April 1 – June 30, 2024	July 31, 2024
July 1 – September 30, 2024	October 31, 2024
October 1 – December 31, 2024	January 31, 2024

For those who have a December 31st year end, file annually and reported an amount owing for 2023, it is important to note that you must pay the amount owed by April 30, 2024, but have until June 15, 2024, to file the return.

When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your payment is considered on time if the CRA receives it on or before the next business day.

Underused Housing Tax (UHT)

Canada has a new 1% annual Underused Housing Tax on the ownership of vacant or underused housing in Canada. It generally applies to foreign national owners of Canadian residential property, but it's important to note that some Canadian individuals and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax.

If you're an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.

Reminder: As you make any kind of changes to your business, you might have questions and need information and guidance from the CRA. We can help. The CRA resources for small and medium businesses web page gives direct access to tax-related services and information for businesses. The Liaison Officer Service is also available to small business owners and self-employed individuals who need help understanding their tax obligations.

Contacts

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Canada Revenue Agency
613-948-8366
[email protected]

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SOURCE Canada Revenue Agency