Personal and Corporate Tax Deadlines

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Personal and Corporate Tax Deadlines

Without music to decorate it, time is just a bunch of boring production deadlines or dates by which bills must be paid. – Frank Zappa
In technologically obsessed and busy world that we are living now, its so easy to forget to submit your taxes and /or miss the deadlines. Therefore, it’s our tradition to share key information and remind you with deadlines.

PERSONAL TAX DEADLINES

Tax season is a time most Canadians dread and it is always important to be aware of the deadlines so as to avoid any late filing and payment penalties. All individuals need to have their tax returns and any payments of tax owing for the year filed and paid by April 30th.

If you are self-employed than the your have some more runway to submit your return by June 15th. Regardless of the extension on the filing date, the payments of the tax amount are still due by April 30th.

Tax instalments

If you have over $3,000 of net tax owing and no taxes were withheld for the year, you may have to pay tax instalments. If you are a resident of Quebec the threshold of net tax owing is $1,800 that is used to determine if an individual will have to pay taxes by instalment.

The following dates below are the quarterly remittance dates for pay tax instalments;

  • March 15
  • June 15
  • September 15
  • December 15

Reminder on tax brackets:

2020  Federal income tax brackets for personal income are as follows:

  • $0 to $48,535: 15%
  • over $48,535 up to $97,069: 20.5%
  • over $97,069 to $150,473: 26%
  • over $150,473 to $214,368: 29% (Ouch!)
  • over $214,368: 33% (Ouch, Ouch!!)

RRSP CONTRIBUTION

You will have 60 days from December 31st to contribute for the prior year therefore the deadline for contributing to your RRSP for the 2019 tax year is March 2, 2020. Please talk to your accountant (or call us) to run some sensitivity scenarios on the impact of the contributions for your 2019 taxes.

It is important to make sure you are aware of your deduction limit before contributing to avoid penalties on over contribution. The deduction limit can be found on your previous year notice of assessment (NoA) or it can be calculated as 18% of your previous year’s earned income up to the limit of $26,500.

RESP CONTRIBUTION

The deadline for contributing to RESP is December 31st. In order to get the most Canada Education Savings Grant (CESG) from ESDC, it is recommended to contribute $2,500 every year so, $500 will be added to your portion. Maximum lifetime contribution for each child is $50,000 and maximum lifetime CESG limit is $7,200.

TFSA CONTRIBUTION LIMITS

2009-2012 $ 5,000
2013-2014 $ 5,500
2015 $ 10,000
2016-2018 $ 5,500
2019-2020 $ 6,000
Every individual is allowed to carry forward any amount of TFSA contribution to next year, so there is no deadline for contributing TFSA. Therefore, pay attention to the allowable TFSA room, otherwise you will be subject to 1% tax of the highest excess TFSA amount in the month, for each month that the excess amount remains in your account.
OTHER AREAS
Home office Expenses: Do not forget to ask your employer to provide you with T2200 form in case if you are working from home which will allow you to deduct some of the home office expenses.
Dividends and Capital Gains: Follow up with your bank for T5 forms (including T5008 forms) if you have some investments transactions.
CORPORATE TAX DEADLINES
INCOME TAXES
  • the corporation is a Canadian-controlled private corporation (CCPC);
  • the corporation claimed the small business deduction for the current or previous tax year;
  • the corporation’s taxable income for the previous tax year does not exceed its business limit for that tax year (if it is not associatedwith any other corporation during the tax year)
  • the total of the taxable incomes of all the associated corporations for their last tax year ending in the previous calendar year does not exceed the total of their business limits for those tax years

GST/HST

Filing deadlines for Federal GST and HST will be different depending on your registered GST/HST period.

  • If you report monthly, then deadline for filing and payment will be one month after the end of reporting period;
  • If you report quarterly, then deadline for filing and payment will be one month after the end of reporting period;
  • If you report annually and your fiscal year-end is not December 31, then deadline for filing and payment will be 3 months after the fiscal year-end;
  • If you report annually and your fiscal year-end is December 31, then deadline for filing will be June 15 and for payment April 30.
PAYROLL
Filing deadline for T4 is the last day of February, the same with distributing T4 slips for employees.
The frequency of remitting depends on the type of remitter:
  • Monthly – deadline is the 15th day of the next month;
  • Quarterly – April 15th, July 15th, October 15th, and January 15th;
  • Threshold 1 – 25th day of the same month and 15th day of the next month;
  • Threshold 2 – third working day after 7th, 14th, 21st, and the last day of the month.

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