Know Your Small Business Tax Deadlines For 2024
As we approach the new year, it will be time soon to start working on everyone’s favourite activity i.e. getting your tax stuff in order :) . Below are the deadlines that all small businesses need to know for 2024.
Download our free Canada unincorporated business tax deadline calendar for 2024 (both Federal and Quebec).
Interest Rates for Late Tax Filings
Due to the increase in interest rates overall, the amount of interest charged on late or overdue balances for both CRA and Revenue Quebec are significantly higher in 2024 (10% compared with 5% in 2022 on overdue tax balances). See links below for current rates:
SALES TAX DEADLINES
GST/HST returns for 2023 must be filed by June 17th, 2024 for those who are required to file annually. This would normally be June 15th, however since this falls on a Saturday, the deadline is pushed to June 17th which is a Monday.
GST/HST payments for 2023 are due by April 30th, 2024 If payment is not made, Revenue Canada (CRA) will start charging interest starting May 1st on balances due.
QST returns for 2023 are due by June 17th, 2024 for those who are required to file annually. This would normally be June 15th, however since this falls on a Saturday, the deadline is pushed to June 17th which is a Monday.
QST payments for 2023 are due by April 30th, 2024. If payment is not made, Revenue Quebec (RQ) will start charging interest starting May 1st. Since interest charged on late QST payments is higher than interest charged on income tax, it is better to prioritize payment of QST.
GST/HST Instalments for 2024 must be paid on a quarterly basis for those whose net GST/HST payable was higher than $3,000 in the previous year. GST/HST Instalments are due on April 30th, 2024, July 31st, 2024, October 31, 2024 and January 31st, 2025. If instalments are not paid, CRA will charge interest starting on the due date of the instalment.
QST Instalments for 2024 must be paid on a quarterly basis for those whose net QST payable was higher than $3,000 in the previous year. QST Instalments are due on April 30th, 2024, July 31st, 2024, October 31, 2024 and January 31st, 2025. If instalments are not paid RQ will charge interest starting on the due date of the instalment.
See my post on Late filing penalties for GST/HST and QST.
It should be noted that penalties and interest on overdue balances are not tax deductible expenses.
INCOME TAX DEADLINES
Ensure that you at least file your tax returns by the due date even if you are unable to pay the balance due. This will help you to avoid penalties for late filing, which are based on the balance payable.
Income tax returns for individuals (those who do not have unincorporated businesses or are self employed) for the calendar year 2023 (January to December 2023) must be filed and paid by April 30, 2024 If tax returns are not filed on time, penalties will be charged. If tax returns are filed on time, but the balance due is not paid, only interest applies.
Income tax returns for small businesses, self employed sole proprietors and partnerships i.e. any unincorporated business that include the T2125 in their returns have until June 17th, 2024. This also includes spouses of unincorporated business owners even if the spouses don’t have self employed income. If tax returns are not filed by June 17th, penalties will apply.
Although income tax returns for self employed unincorporated small business owners is due by June 17th, both CRA and RQ will start charging interest on balances due starting May 1st, 2024. So if you choose to file between May 2nd and June 17th it is best to pay at least an estimate of taxes owing by May 1st, 2024 to avoid or reduce interest costs.
Instalments relating to the 2024 tax year are payable by March 15th, 2024, June 17th, 2024, September 16th, 2024 and December 16th, 2024. If you are required to pay instalments as a sole proprietor (unincorporated business/self employed), you will be advised about the amounts and due dates by both Revenue Canada and Revenue Quebec via mail or by going to “my account” which is available online. Note that generally if your income taxes payable exceed $3,000 in 2023, you are required to pay quarterly instalments for 2024, except if you live in Quebec where instalments are based on taxes payable in the previous year of $1,800.
It should be noted that if your instalments start for the first time as a result of exceeding the income threshold in 2023, instalment payments will only start September 16th, 2024.
See my post on Late filing penalties for income taxes.
RRSP CONTRIBUTION DEADLINE
All individual taxpayers have until February 29, 2024 to contribute to their RRSPs for the 2024 calendar year. The maximum amount that you can contribute can be found on your 2022 notice of assessment or by going to CRA my account. Exceeding this amount will result in penalties so you want to be careful about how much you contribute. It should also be noted that the higher your marginal tax rate, the more benefit you get from an RRSP contribution.
PAYROLL DECLARATIONS (T4 AND RL1) DEADLINE
For Sole proprietors and corporations who pay employees via payroll:
T4 Salary Declarations are due by February 29, 2024
RL1 Salary Declarations for those with employees in Quebec are also due by February 29, 2024
CNESST annual salary declarations (for those in Quebec) are due by March 15, 2024
With a little bit of preparation, filing your tax declarations on time is fairly straightforward and can help save you interest, penalties and the inevitable stress that comes with procrastination.
Download our free Canada unincorporated business tax deadline calendar for 2024 (both Federal and Quebec).
Ronika Khanna is an accounting and finance professional who helps small businesses achieve their financial goals. She is the author of several books for small businesses and also provides financial consulting services.
UPDATED FOR 2024
Mastering Canadian taxes as a small business or self-employed owner can often feel complex and overwhelming. Simple errors, oversights, and miscalculations can result in paying a higher tax bill than is necessary and result in costly audits and/or penalties.
But keeping your business on the right side of the tax authorities is easier than you think. Small Business Tax Facts: An Easy-to-Understand Guide for Canadian Small Business Owners teaches you the fundamentals and the facts about income and tax. It shows you how to navigate taxes, pay only what you owe, and on time, and save your hard earned money by claiming the deductions that you are entitled to.
Inside this comprehensive and helpful guide for unincorporated small business and self employed owners, you’ll discover:
a comprehensive breakdown of business expenses and deductions with examples to help you maximize your tax savings
detailed explanation of income tax implications for small business and self-employed individuals
expert guidance on how tax brackets and rates work so that you can understand exactly how you are taxed
the differences between being an employee and a small business/self employed owner allowing you to make informed decisions about your tax obligations
how to register for an online CRA Account to simplify your tax reporting and compliance
a list of the most common tax deductions and tax credits to help you reduce your tax bill
insights into how small business/self employed owners should do their accounting to simplify the tax preparation process
guidance on how to prepare and file your own business income tax return, allowing you to save on hiring an accountant
insights on sales taxes, including how to prepare your sales tax (GST/HST) returns accurately.
how Canada Pension Plan (CPP) contributions work ,how to calculate them and how they affect your taxes payable
and so much more!
Discover insider secrets, tools, techniques, and must-know information from author Ronika Khanna CPA, CA, & CFA, and learn to navigate your Canadian small business taxes with ease.
Get your free small business tax return checklist .