Last updated Feb. 16, 2021.
Do I need to file my tax return?
- Provincial tax benefits
- Tax refunds for instalment or source deductions
- Refundable medical expense supplement
- Canada Pension Plan or Employment Insurance (EI) premium overpayments
What are the deadlines for small business tax filing?
Last year was different. The federal government extended the tax filing and payment deadlines for most taxpayers due to COVID-19. It’s unlikely these deadlines will be extended again this year, so be aware of tax deadlines that impact you.
It’s important to file your tax return, and file on time. It’s also important to pay on time. Postponing filings or payments will only push problems for a couple of months but not make them go away.
LEARN MORE: Late filing penalties for small business taxes.
Individual tax deadline
Incorporated business tax deadline
What tax changes will impact my 2020 tax return?
Several COVID-related programs were introduced last year to help small business owners. We outline the most important programs below.
Canada Emergency Business Account Loan
The Canada Emergency Business Account provides up to $60,000 in interest-free loans to small businesses. If you’re facing a decline in revenue right now, this loan will help you cover operating costs like rent or payroll.
The best part is, the loan is interest-free until December 31st, 2022. And up to $20,000 of the loan could be forgiven if you repay it by then. Just note that the forgivable portion of the loan is taxable in the year it’s received.
You can apply for the loan through your bank or credit union that holds your primary business operating account.
Farm Credit Canada Funding
The government increased the lending capacity of Farm Credit Canada by $5 billion to help agricultural producers cope during the pandemic. If you’re facing cash flow issues, or feeling the impact of lost sales, this loan will help. You can stay focused on keeping your business running, instead of worrying about how to access funds to keep operating.
If you’re gearing up for harvest season, you can use the loan to purchase inventory or equipment. Reach out to Farm Credit Canada to find out what your options are. You can deduct any interest incurred on the loan to help you lower your taxable income.
Canada Emergency Wage Subsidy
The Canada Emergency Wage Subsidy (CEWS) is a taxable benefit available to employers who have experienced a drop in revenue due to COVID-19, to cover part of their employee wages retroactive to March 15, 2020.
You can use the money to prevent layoffs and make it easier to resume operations after the pandemic is over. Plus, salaries are usually the biggest cost on an income statement.
With the subsidy, you’ll have some cash flow that you can use for operating costs like rent, utilities, insurance and property taxes.
The Canada Emergency Wage Subsidy is taxable. You must include the amount of CEWS you receive as taxable income on your corporate income tax return.
When are my RRSP contributions due?
What records do I need?
- The date of the purchase
- Name and address of the seller or supplier
- Your name and address
- The full description of the goods or services
- The seller’s business number if they register for GST/HST
What can I deduct as a small business owner?
- Advertising expenses
- Business-use-of-home expenses
- Meals and entertainment
- Office expenses
- Vehicle expenses
Free Guide: Tax Preparation Toolkit for Small Business Owners
We know you’re dreading it, but it’s got to be done – and with a little preparation, you can fulfill your tax obligations without any stress. Our simple, easy-to-understand toolkit will teach you how to get organized for tax season. Download your free tax preparation toolkit to learn what information and key documents you need to prepare so you’re ready for the tax filing deadline. There’s even a printable checklist that lists all the documents you’ll need as a business owner, and tax write offs you shouldn’t miss out on. Get the prep out of the way so you can get back to running your business. Download your toolkit today.
Book a free consultation with FBC
Small business tax filing can seem overwhelming, but it doesn’t have to be.
FBC works with Canadian small business owners to minimize their income taxes and maximize their assets.
We offer tax planning, preparation and audit representation as well as bookkeeping and financial planning to cover your complete financial needs, all available year-round for one fee.
Interested in learning more? We’re offering a no-cost, no-obligation consultation to explain how you can make sure you’re taking advantage of all the tax-saving opportunities available to you.