Definitive Guide to Canadian Tax Filing Deadlines For 2022
Keeping track of tax filing deadlines can be one of the most onerous parts of owning a business in Canada (I’m pretty good at keeping track of mountains of paper ahem, even the electronic kind), but they’re pretty important for maintaining good tax hygiene.
Missing deadlines doesn’t just cost you money in late-filing penalties, it can also flag you for a tax audit with Canada Revenue Agency, and nobody wants that.
Read on to find out your Canadian tax filing deadlines for 2022 and the due dates for your taxes.
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2022 CORPORATE TAX DEADLINES
Business owners have a number of tax filings they need to think about. From corporate income tax, to GST to payroll, everything is due at a different time of year.
If you’re a Canadian resident and own a private business, odds are pretty good that you have a Canadian-Controlled-Private-Corporation, otherwise known as a CCPC. All of my comments assume that you have a CCPC. If you’re dealing with a public company or a company with non-resident shareholders, different rules apply.
Your tax deadlines depend on your company’s fiscal year end. Your company may or may not have a December fiscal year end. You’ll need to know this date to know when all of your corporate tax filings and payments are due.
What is corporate income tax?
Corporate income tax is the tax your business pays on its profits. It’s different from GST and payroll taxes, which your corporation collects on behalf of the government and it’s also different from the taxes you pay on your personal tax return.
Rule of thumb: If you’re a new business owner and you want to know how much to keep back to make sure you have enough cash to cover your corporate taxes and GST, I recommend putting aside 20% of all revenue you collect in a separate savings account, every time you collect an invoice. This should be enough to cover you at tax time.
What is the 2022 corporate income tax payment deadline?
A CCPC is required to pay its corporate income tax within three months of its fiscal year end, to the extent that you didn’t pay instalments throughout its fiscal year. CRA will charge late-payment interest on taxes paid after this three-month deadline. The 2020 corporate tax payment deadline has been extended to September 30, 2020.
What is the Canadian tax filing deadlines for 2022: Corporate Income Tax
You’re required to file your business’ corporate income tax return within six months of its fiscal year end.
If you’re going to be late in filing this return, you want to make sure that you’ve paid the corporate tax. CRA charges a hefty late filing penalty if you have both late paid tax and a late filed return.
If your tax is all paid up, filing the return isn’t as urgent, but it’s still better to file on time and have a good tax filing history with CRA.
GOODS AND SERVICES TAX (GST)
What is GST?
GST (or HST) is a tax that your corporation collects on behalf of the Canadian government on most services and products you sell. Generally, you deduct the GST your corporation pays on its business expenses (exceptions apply, they always apply, sigh). This net GST gets paid to Canada Revenue Agency.
Live in a PST province? That’s a bit more complicated. Give me a call if you’d like to have a quick chat about it.
What is the Canadian tax filing deadlines for 2022: GST
The deadline to file your corporate GST return and send in the net GST depends on whether you file annually, quarterly or monthly. How do you know what your filing deadline is?
You can check through My Business Account (it will tell you when your next GST return is due and for what reporting period).
Why would you select one filing period over another? Well, that’s a more in-depth topic, get in touch below if you want to chat.
Annual filer:
You’re required to submit your GST payment to Canada Revenue Agency within 3 months of the fiscal year end of your corporation. The GST return is also due at the 3 month mark. Don’t be fooled, it is due well before the corporate income tax return.
Quarterly filer:
You’re required to submit your GST payment to Canada Revenue Agency within 1 month of your quarter-end. The GST return is also due at the 1 month mark.
Monthly filer:
You’re required to submit your GST payment to Canada Revenue Agency within 1 month of your month-end. The GST return is also due at the 1 month mark.
If you’re late filing or paying, CRA will charge your corporation interest and penalties. There is no extension on paying your GST in 2022.
PAYROLL
What is payroll?
This is another tax that you collect on behalf of the Canadian government from your employees. You’re responsible for collecting their taxes, their CPP and EI. As their employer, the corporation is also responsible for paying the employer portion of CPP and EI. All of these amounts form your payroll remittances.
What are the Canadian tax filing deadlines for 2022: Payroll
Unlike GST and corporate income tax, which are reported based on a corporation’s fiscal year, payroll is reported and remitted on a calendar year.
Payroll is reported on a T4 return, which you give to your employees and send to Canada Revenue Agency.
You need to file your 2021 T4 returns by February 28, 2022.
When are the 2022 payroll remittance deadlines?
The deadline for sending in your payroll remittances is dependent on your remitter status. How can you find out what your remitter status is and how do you know how often you should send in your payroll remittances?
CRA will often send a notice or you can check CRA’s My Business Account feature, found here.
If you’re a quarterly remitter, your deadlines are:
April 15, 2022
July 15, 2022
October 15, 2022
January 15, 2023
If you’re a regular remitter (monthly), your deadlines are:
Payroll remittances are due the 15th of the next month (eg. You pay your employees for May 2022 and the related payroll remittances are due June 15, 2022)
If you’re a threshold 1 accelerated remitter (twice per month), your deadlines are:
25th day of the same month
10th day of the next month
If you’re a threshold 2 accelerated remitter (four times per month), your deadlines are:
the 3rd working day after the 7th
3rd working day after the 14th
the 3rd working day after the 21st
3rd working day after the last day of the month
Key tip: If there is one tax that you commit to getting right, all the time, it would be this one. CRA is not gentle if you late file your payroll or if you send in your payroll collections late. Being late with this account, more than any other will set you up for significant penalties and a payroll audit. If you need payroll help from an accountant, make sure you get it early. It will save you a lot of money!
PERSONAL TAX DEADLINES
Your personal tax filing deadlines will depend on whether you are self-employed or not.
If you’re not a self-employed and you just have employment, investment or pension income, your taxes are due to be paid, and your tax is due to be filed, by April 30, 2022.
You do not need to send in GST to Canada Revenue Agency.
What are the self-employed tax deadlines for 2022?
Someone who is self-employed operates a business personally, not through a corporation. When you operate a business this way, you file and pay your taxes based on your personal income (including your business income).
In addition to your regular income taxes, you will also pay the employer and employee portions of CPP on your net business income.
Your tax is ordinarily due to be paid by April 30 of the next year, less instalments you made during the year. For 2021, your tax payment deadline will be April 30, 2022
Your personal tax return is due to be filed by June 15, 2022.
GST for the self-employed
If you’re self-employed and don’t have a corporation, the net GST you collect is due to be paid by April 30, 2022.
The GST return is due to be filed by June 15, 2022.
Not sure if you should register for GST? Contact me to ask about it.
Key tip: If you’re new to business and operate as a sole proprietor, and you think you need a CPA, I highly recommend contacting someone well before April 30th. That way, your CPA can estimate your taxes payable so you’re not surprised by a big bill. Many CPA’s don’t accept new clients during March and April. Even better? Find a CPA as soon as you start your business. We can give you a lot of guidance at the beginning.
Registered Retirement Savings Plan (RRSP) Contributions
RRSP’s can be a great way to save taxes now and save for your retirement.
They are deductible from income. You can make contributions to your RRSP, and have them deductible on your 2021 personal tax return, up to March 1, 2022.
How do you find out what your contribution limit is?
Check your 2020 Notice of Assessment or log into Canada Revenue Agency “My Account” to find your 2020 Notice of Assessment. Remember to factor in contributions you’ve already made between March 1, 2021 and December 31, 2021 before you make any further contributions to your RRSP.
Key tip: Be careful not to overcontribute to your RRSP! CRA charges a hefty penalty on overcontributions. In my experience, calculating the penalty and correcting the overcontribution can be a time consuming process.
Tax-free Savings Account (TFSA)
Contributions to these accounts are not deductible for tax purposes, so you can make contributions at any time during the year.
The same advice as RRSP’s applies here; make sure you don’t overcontribute. CRA will charge hefty penalties on overcontributions.
You can find your TFSA balance on your 2020 Notice of Assessment or access it through CRA’s My Account feature, here.
What is the deadline for 2022 personal tax instalments?
Your personal tax instalments for your 2021 taxes are due:
March 15, 2022
June 15, 2022
September 15, 2022
December 15, 2022
Having trouble staying on top of your tax filings? If you’re behind in your taxes or you just don’t have time to worry about it, let me know, I’m happy to help. If you have any questions or need any other information, contact me.