When you operate a business in Ontario, you are responsible for charging, collecting, and remitting the appropriate taxes. Your business type, location and legal structure will determine which taxes will apply to you, and what you will need to submit. This guide will give you an overview of the different taxes that may affect an incorporated business and provide you with information on tools, programs and services that can help you meet your business tax obligations.
To learn more about business taxes in general, you can read our Taxation Guide.
All resident corporations must file a corporation income tax (T2) return every tax year even if there are no taxes payable. You must file a corporate tax return even if you are a:
You have to file a return for a non-resident corporation if, at any time in the tax year, your corporation:
T2 Corporation Income Tax Guide
Most corporations can file their return electronically using the Internet. Filing online is mandatory for certain types of corporations with annual gross revenues over $1 million.
Corporation Internet Filing
It is also important to know which taxes to charge, collect and remit on the goods and services you sell. In Ontario, you may need to set up a business number for Harmonized Sales Tax (HST).
Your Business Number is your single account number for dealing with the federal government regarding taxes, payroll, import/export and other activities. If you plan to hire employees, or if you will be importing and/or exporting products or services, you must register for a business number.
If you sell goods and services in Ontario, you may need a business number to charge, collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12 month period are not be required to register for HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.
Business Number Registration
You can use the Canada Revenue Agency’s My Business Account to manage some of your taxes online.
My Business Account
As a small business, there are taxpayer rights and commitments that apply to you. You can learn more by visiting the Canada Revenue Agency Website.
CRA - Taxpayer Bill of Rights
To learn more about your rights as a taxpayer, you can take advantage of the following resources:
You can dispute tax assessments or taxes imposed on your business under the Income Tax Act through CRA’s Appeals Branch.
Objection and Appeal Rights under the Income Tax Act
Read through resources and publications that explain the rulings and technical interpretations of the Income Tax Act.
Services of the Income Tax Rulings Directorate
If you need to correct incomplete or incorrect information on previous dealings with CRA, you can provide the corrected information without penalty or prosecution through this program.
Voluntary Disclosures Program
The tax-related acts and legislation covered in this guide include, but are not limited to the following:
If you are interested in reading more about laws and regulations that could apply to your small business, or if you would like to stay up to date on new legislation, you can refer to the following resources:
You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.