Canadian Corporate Tax, GST/PST Filing, and Transfer Pricing Advisory

Federal corporate income tax is 15% (net of the federal abatement where provincial tax applies); Ontario adds 11.5%, for a combined 26.5% on large corporations. For CCPCs the Small Business Deduction kicks in: on active business income up to CAD 500,000 the combined federal-Ontario rate is 12.2%. The federal tax authority is the CRA.

You must register for GST/HST the moment worldwide taxable supplies pass CAD 30,000 in a single calendar quarter or across four consecutive quarters. Small suppliers below the threshold may register voluntarily. GST is 5% federally; in harmonized provinces HST is 13% in Ontario, 14% in Nova Scotia, and 15% in New Brunswick. Registration is online with the CRA, confirmed within 10 business days.

HST (Harmonized Sales Tax) is a combined federal-provincial sales tax that the CRA collects on behalf of participating provinces. In Ontario, HST is 13% (5% federal + 8% provincial) in place of separate GST and Ontario RST. Quebec runs its own QST (9.975%); BC keeps a separate PST (7%): in non-harmonized provinces you carry two registrations and two sets of filings.

A Canadian CPA isn't legally mandatory, but in practice you need one. The CRA requires the annual T2 return within six months of fiscal year-end and payment of any balance within two months (three for CCPCs with active income). CPA-signed financials are needed for SR&ED (R&D) claims, bank financing, and regulated industries. We work with licensed Canadian CPAs — bookkeeping and annual filing, turnkey.

The Canada Revenue Agency (CRA) is the federal body that administers tax law and benefit programs. A corporation’s obligations: the T2 within six months of year-end; payroll source deductions (CPP, EI, income tax) by the 15th of the following month; GST/HST returns monthly, quarterly, or annually by volume; records kept at least six years. For unremitted payroll deductions, directors are personally liable.