Small Business Tax Filing Deadlines for 2019 (UPDATED)
See our post on business tax deadlines for 2021 for sole proprietors
UPDATE: Tax filing deadlines for the 2019 Calendar year have been changed as a result of COVID-19 financial and tax measures that have been put in place. Changes to deadlines are summarized below:
COVID 19 REVISED FEDERAL TAX FILING DEADLINES
Individual (non small business/self employed) Tax Returns (T1): Extended from April 30th, .2020 to June 1st, 2020
Trust Tax Returns (T3) : Extended from March 30th, 2020 to June 1st, 2020
Partnership Returns (T5013): Extended from March 31, 2020 to May 1st, 2020
Non Resident Information Returns (NR4): Extended from March 31, 2020 to May 1st, 2020
Charities Tax Return (T3010): Extended to December 31st, 2020 for all charities with a tax return due between March 18th and December 31st (i.e. all charities with a year end starting September 30th, 2019 onwards)
Self Employed/Small Business Tax returns The due date for unincorporated small business returns ,which include a T2125, does not change, however, any amounts due do not have to be paid until September 1st, 2020
GST/HST and QST Returns and Remittances: There are three separate types of filers:
Monthly GST/HST and QST Filings : Extension of existing deadline that extend from March 31st, April 30th and May 31st to June 30th, 2020 . These apply to filings for the periods ending February, March and April reporting periods . For example if you owe taxes for the period ending March 31st, 2020 , which are due by April 30th, 2020 - this is now extended to June 30th, 2020
Quarterly GST/HST and QST Filings : Extension of deadline from April 30th to June 30th, 2020 for that have remittances due for the January 1st, 2020 to March 31st, 2020 reporting periods.
Annual GST/HST and QST Filings : Extension of deadline from March 31st, April 30th and May 31st to June 30th, 2020 for that have remittances due for the 2019 calendar year reporting period ending December 31st, 2019, January 31st, 2020 or February 29th, 2020 Eg if you owe taxes for the period ending December 31st, 2019 , which are due by March 31st, 2020 - this is now extended to June 30th, 2020
IT is important to note that the GST/HST tax returns should still be filed by the due date. GST/HST tax returns can be filed using CRA my business account
Individual tax return payments that would have been owing on April 30th are now extended to September 1st, 2020
Trust tax return payments that would have been owing on April 30th are now extended to September 1st, 2020
Corporation taxes that become payable on March 18th or after have been extended to September 1st, 2020
Individual and corporate instalment payments that come due between March 18th and June 15th are extended to September 1st, 2020
COVID 19 REVISED QUEBEC TAX FILING DEADLINES
Individual (non small business/self employed) Tax Returns (TP11): Extended from April 30th.2020 to June 1st, 2020
Partnership Returns (TP-600-V): Extended from March 31, 2020 to May 1st, 2020
Trust Tax Returns (TP-646-V) : Extended from March 30th, 2020 to June 1st, 2020
QST Remittances will follow the same deadline extensions as the GST/HST noted above
Tax return payments for individuals and corporations are the same as the federal deadlines (see above)
END OF UPDATE
As the year end approaches, small businesses in addition to being aware of their tax obligations should know when various tax reports are due. Ensuring that these are submitted on time (or better yet, in advance of the deadline) can result in significant savings by avoiding interest and penalties and reducing unnecessary stress . Additionally timely submission of tax filings can help to prevent aggressive notices from revenue agencies and reduces the red flags that tend to accompany habitually late filers at CRA and/or RQ. A compilation of these deadlines is as follows:
Salary Declarations (T4 & RL1 Slips and Summaries)
Deadline: February 28th, 2020
If you have employees to whom you pay a salary and are required to remit payroll deductions at source, you are required to file T4 and RL-1 slips and summaries with both Revenue Canada and Revenue Quebec respectively. Additionally the slips must be given to employees so that they can report the income and related deductions on their income tax returns before the deadline of February 28th. These can be prepared manually by downloading the forms from CRA and RQ or there are a variety of other options to file payroll and year end salary declarations
Dividend Declarations (T5 and RL3)
Deadline: February 28th, 2020
Corporations that compensate their shareholders via dividends are required to submit dividend declarations by completing the T5 and RL3 Slips. Total remittances to shareholders/corporate owners can be accumulated in a shareholder loan account and a dividend can be declared either at December 31st or at the year end of the corporation, which may be earlier in the year (as long as it is in the same fiscal year as the calendar year). For example if you have a corporate year end of June 30th, 2019 the dividend only up to June 30th can be declared for 2019. Business owners should ensure that the shareholder loan balance (amounts withdrawn from the company) is cleared out after one fiscal year via payment of salary or dividends to avoid having the amounts deemed as income by CRA. Dividends paid should also be recorded in the minutes for the corporation.
RRSP Contributions for 2019
Deadline: March 2nd, 2020
Small business owners should consider their available RRSP room, which can be found on the previous year CRA notice of assessment or by going to “my account” with Revenue Canada. Contributions to RRSPs. reduces personal income taxes payable and is a great tax planning tool. It makes sense to use up RRSP room in years when your income is highest as the tax deduction is correspondingly higher. There are numerous ways to invest your RRSP contributions which allows you to capture the power of compounding (essentially allowing you to earn investment revenue on top of investment revenue. Eg. $10,000 invested at an annual rate of 5% would be worth $26,500 in 20 years)
Annual GST-HST-QST Returns for Corporations with December 31st Year End.
Deadline: March 31st.2020
If you are incorporated with a commonly selected December 31st year end and have selected an annual GST/HST QST return filing frequency , the deadline to file the GST-QST return is March 31st. Generally speaking, any corporation with an annual filing period is required to file their GST-HST-QST return three months after their year end. A corporation with a June 30th year end is required to file their return by September 30th. Note that the penalties for late GST-QST filing can be hefty so it is important to both file and pay this on or before the due date as penalties/interest are also charged on non payment.
Partnership Returns (T5013 and RL-15)
Deadline: March 31st, 2020
If you are involved in a partnership that meets certain criteria you are required to file T5013 and RL-15 (QC) slips and summaries and submit them to both the government and individual partners.
Corporation Tax Return/INSTALLMENTS
Deadline: 6 months after year end
Corporations must file their corporate tax returns 6 months after their year end to avoid penalties. Note that CRA starts charging interest after 3 months after the year end and Revenue Quebec starts charging interest 2 months after the year end.
Corporations are also required to pay installments based on their corporate taxes payable if their taxes exceed $3k in the previous year. CRA and RQ do not send notices advising you of the amounts (in the case of corporations) so it is up to the business owner or accountant to ensure these are calculated and remitted correctly.
NON SELF EMPLOYED Business OWNERS
Deadline: APRIL 30,2020
For taxpayers who are not self employed, which includes those who draw salaries and dividends from corporations that they own, the tax return must be filed and any balance owing is payable. Owners who take dividends might have a high tax payable balance since no taxes may have been paid during the year. If you do not have the funds to pay your balance owing, it is still better to file your tax return by the deadline as this allows you to avoid penalties. Interest will be continued to charge on any balance owing, which can be paid by working out a payment arrangement with CRA
GST-QST (Self Employed Persons)
Deadline: April 30th, 2020
If you are an unincorporated self employed business owner, the deadline for the annual GST-QST filing is April 30th. If you are unable to file by the due date, payment of estimated taxes payable will eliminate your penalties if the amount paid is the same or higher than the balance due. Note that (unincorporated) partnerships are required to file their GST-QST returns by March 31st.
Income Tax Return (Self Employed Persons)
Deadline: June 15th
Any taxpayer that has a small business that is not incorporated (this includes self employed workers, freelancers, independent contractors etc.)has until June 15th to file their tax returns. It is important to note that any balances owing start accruing interest at April 30th, so you should consider paying an estimated amount at April 30th to reduce your final tax bill.
Tax tips for self employed, small business and startups
non corporate Income Tax INSTALLMENTS
March 15, June 15, September 15th, December 15th
Small business owners that are not incorporated and whose tax bills have exceeded $3,000 in previous years, are required to pay income tax installments. Both CRA and RQ will send notices indicating the amount and due date of the income tax installment payable for individuals. Installment that are not paid by the due dates start to accrue interest , which can be quite high particularly with Revenue Quebec. It is best to pay attention to any notifications that you receive from CRA or MRQ with respect to installment and follow the instructions. If you believe that the recommended installment amounts exceed the income taxes that you will have to pay in the current year, you can reduce the amount. Note that you are generally not required to pay installments during your first year in business.
Info on installment payments for income taxes and GST-HST-QST
GST-HST-QST INSTALLMENTS
April 30th, July 31st, October 31st and January 31st
Similar to income tax installments, you are required to pay an estimated amount of GST-HST-QST, which is applicable if prior year revenues exceed $3,000. You will likely receive a notice indicating that installments are due, however, the amount of the installment is left to the business owner to calculate. The quarterly estimated amount of GST/HST and QST installments are essentially 1/4th of the taxes paid in the previous year. Similar to income tax, you are not required to pay sales tax installments during your first year in business as they are based on historical income.
Ensuring that you know the deadlines, even if you have an accountant, can reduce unpleasant surprises and potentially save you precious funds that that can be put to better use in the business rather than being wasted on interest and penalties.
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.
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