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Understanding The Most Common Business Tax Forms in Canada

There is an endless amount of tax forms in Canada to cover the plethora of business types and tax obligations. As a business owner, it’s essential to understand what each form is for and when to use it. This guide will help you make sense of the most commonly used business tax forms in Canada.

1. T2 Corporation Income Tax Return

This form is used by Canadian resident corporations to report their annual income and calculate corporate income tax.

2. T4 Statement of Remuneration Paid

This form is used by employers to report employment income and other taxable benefits paid to their employees.

3. T5 Statement of Investment Income

This form is used to report investment income including any dividends, interest, and royalties.

4. GST/HST Return (Form GST34-2)

This form is used by businesses that are registered for GST/HST to report and remit these taxes.

5. T5018 Statement of Contract Payments

This form is used by construction businesses to report the payments made to subcontractors.

6. RC1 Request for a Business Number and Certain Program Accounts

This form is used to register for a Business Number and open accounts for various CRA programs.

7. PD7A Statement of Account for Current Source Deductions

This form is used by employers to report and remit payroll source deductions.

8. T2200 Declaration of Conditions of Employment

Employers provide this form to employees who need to claim employment expenses.

9. T4A Statement of Pension, Retirement, Annuity, and Other Income

This form is used to report various types of income other than employment, such as pension or annuity payments.

10. T3 Trust Income Tax and Information Return

This form is used by trustees to report any income, deductions, and distributions of a trust.

11. AUT-01 Authorize a Representative for Offline Access

This form is used to grant authorization to an individual or representative to manage the business’s tax affairs with the CRA via the phone, mail, fax or inperson.

12. T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim

This form is used to claim tax incentives for any qualifying research and development activities.

13. T2125 Statement of Business or Professional Activities

This form is used by sole proprietors and partnerships to report their business or professional income and expenses.

14. T5013 Partnership Information Return

This is used by partnerships to report their financial information and allocate their income, losses, and other tax items to partners.

15. T776 Statement of Real Estate Rentals

This form is used to report rental properties income and expenses.

16. T2SCH1 Net Income (Loss) for Income Tax Purposes

This form is used to reconcile accounting income with net income for tax purposes as part of the T2 return.

17. T2SCH100 Balance Sheet Information

This form is used to report a corporation’s financial position, including their assets, liabilities, and shareholders’ equity as part of the T2 return.

18. T2SCH125 Income Statement Information

The purpose of this form is to provide detailed reporting of a corporation’s income and expenses in addition to the T2 return.

19. T4A-NR Statement of Fees, Commissions, or Other Amounts Paid to Non-Residents for Services Rendered in Canada

This document is used to report payments that are made to non-residents of Canada for services performed inside Canada.

20. T1134 Information Return Relating to Controlled and Non-Controlled Foreign Affiliates

This form is used by Canadian corporations that own foreign affiliates. They use this form to report the activities and financial status of these affiliates.

Need Help? LedgersOnline Can Handle Your Taxes.

Fully understanding and navigating your business’ tax obligations can be complicated. LedgersOnline has a team of Canadian tax filing experts who can help you collect and remit sales tax, catch up on your bookkeeping and file your corporate tax returns. Schedule a 1:1 call with us and see how we can help.

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