Ontario business tax, at a high level
An educational overview of the tax accounts and filings most Ontario businesses run into. Always confirm details with the CRA or a tax professional.
Business Number (BN)
A CRA Business Number is a 9-digit account identifier. Different tax accounts (GST/HST, payroll, corporate income tax) are added to your BN as separate program accounts.
GST/HST
Ontario businesses charge and remit HST when required. Registration is generally required once you cross the small supplier threshold. See our GST/HST guide for details.
Payroll
If you have employees, you'll open a payroll (RP) account, withhold and remit source deductions, and issue T4/T4A slips at year-end. Contractors are different — treat worker classification carefully.
Corporate income tax
Ontario corporations file a T2 corporate income tax return with the CRA (which administers Ontario corporate tax). Your fiscal year-end determines when the T2 is due.
Sole proprietors and partnerships
Sole proprietors report business income on their personal T1 return (Form T2125). Partnerships allocate income to partners, who then report it personally.
Record keeping
The CRA generally requires you to keep business records for at least six years from the end of the tax year they relate to. Digital copies are generally acceptable.