GST/HST, T2 corporate returns and the small business deduction.
Canadian subsidiaries and Canadian sellers going cross-border into the US. Federal and provincial corporate tax, GST/HST across the provincial patchwork, T4 payroll and the small business deduction that takes the federal rate to 9 percent on the first CAD 500,000.
| Tax | Rate | How it works |
|---|---|---|
| Corporate income tax | 9% to 31% | Federal 15 percent general, 9 percent small business rate, plus provincial rates of roughly 2 to 16 percent. Combined general rate around 26 to 31 percent by province. |
| GST / HST | 5% to 15% | Federal GST at 5 percent; harmonised HST at 13 to 15 percent in Ontario and the Atlantic provinces; separate provincial sales tax in British Columbia, Saskatchewan, Manitoba and Quebec's QST. |
| Payroll deductions | CPP and EI | Employers withhold income tax, Canada Pension Plan and Employment Insurance, and remit monthly or quarterly. |
| Individual income tax | 15% to 33% federal | Plus provincial rates. Combined top rates exceed 50 percent in several provinces. |
What you can form, and what each one owes.
Federal or provincial corporation
Incorporated under the CBCA or a provincial act. Federal incorporation allows operation in any province with extra-provincial registration.
Sole proprietor and partnership
Taxed at individual rates with a business number for GST/HST above the threshold.
Branch of a foreign corporation
Taxed on Canadian income with a 25 percent branch tax on repatriated profits, reduced by treaty.
The calendar we run for you.
Every filing, its due date and who it goes to. We track all of them twelve months ahead and remind at 90, 30 and 7 days.
| Filing | Due | To |
|---|---|---|
| T2 corporate return | 6 months after year end; tax payable within 2 or 3 months | CRA |
| GST/HST return | Monthly, quarterly or annually by revenue | CRA |
| T4 slips and summary | Last day of February | CRA |
| Payroll remittances | 15th of the following month for regular remitters | CRA |
The provincial layer.
Canada's complexity is provincial. Ontario and the Atlantic provinces harmonise sales tax into HST; British Columbia, Saskatchewan and Manitoba run separate PSTs with their own registrations; Quebec runs QST and its own income tax administration. A business selling nationally may hold four or five registrations.
Where we fit.
Canadian subsidiaries of UK, UAE and US groups, and Canadian sellers expanding into US sales tax. We keep the books and GST/HST current and coordinate T2 preparation with a Canadian CPA partner where certification is required.
What we do here.
Books and computations by our team; local certification coordinated with a partner firm where required.
Bookkeeping
Reconciled monthly on Xero or QuickBooks, so the numbers are real before you look at them.
Ecommerce Accounting
Amazon, Shopify, TikTok Shop and Walmart settlements reconciled to true margin, in every market you sell in.
US Sales Tax & Nexus
Nexus analysis, registrations and returns across the states where you actually owe tax.
International Tax & Transfer Pricing
Structuring across the UK, UAE and US, transfer pricing documentation, permanent establishment and double tax relief.
Payroll
UK PAYE, UAE WPS and US federal and state payroll, run to the day with every filing that goes with it.
Does a US or UK company selling to Canadians need to register for GST/HST?
Non-resident vendors selling digital products or services, or goods through fulfilment warehouses in Canada, must register once sales exceed CAD 30,000 over four quarters under the simplified or standard regime depending on the supply.
Do you file the T2?
We prepare the accounts and tax computation and file through a Canadian CPA partner, since certain schedules and provincial filings benefit from local certification.
Talk to a Canada accountant. Free.
Thirty minutes, no pitch deck. Tell us the entities and the countries, and we will tell you honestly what applies and what it costs.