As we step into the new year, it's crucial for individuals and businesses in Canada to stay on top of their 2024 tax deadlines. Filing taxes and meeting the deadlines set by the Canada Revenue Agency (CRA) is essential to avoid penalties and hefty interest charges. In this article, we'll walk you through the key 2024 tax deadlines for both personal and corporate taxes.
Before we delve into the specific personal and corporate tax deadlines, we want to highlight the following:
For the calendar year 2023, the deadline to file your individual tax return (those who are not self-employed) and make payment is April 30, 2024. This deadline applies to individuals who don't report business income on their tax return. It's crucial to ensure that your tax return is filed and any balance owing is paid by this date to avoid penalties and interest charges.
If you or your spouse or common-law partner is a sole proprietor and reports business income on your tax return, the deadline for filing your 2023 income tax return is June 15, 2024. However, since June 15th, 2024 falls on a Saturday, the deadline to file your tax return is June 17, 2024 but any taxes owing must still be paid by April 30, 2024. This means that even if you don't have your tax return ready by April 30, 2024, you should estimate the amount of taxes owing and make the payment to avoid interest charges.
Tax instalments are another important aspect to consider when managing your tax obligations. If you are required to make tax instalments, the due dates for individuals for the 2024 tax year are:
As a sole proprietor, if you need to make instalment payments, you will receive guidance on the payment amounts and deadlines from the Revenue Canada through mail or by accessing "my account" online.
For small businesses operating as corporations, it's crucial to be aware of the specific 2024 tax deadlines
The deadline for filing corporate tax returns is generally 6 months after the corporation's year-end. For example, if your corporation has a year-end of December 31, 2023, the tax return filing deadline would be June 30, 2024. However, it's important to note that the filing deadline may vary based on the specific year-end date of your corporation.
In cases where the last day of the tax year is not the last day of a month, the tax return is due on the same day of the 6th month after the year-end. For instance, if your corporation's year-end is July 15, 2023, the tax return would be due on January 15, 2024.
The due dates for corporate taxes owing are earlier than the filing deadlines for tax returns. Generally, corporate taxes are due 2 months after the year-end. However, there is an exception that applies to many Canadian Controlled Private Corporation (CCPCs). If your corporation meets certain criteria, the taxes owing are due 3 months after the year-end. The criteria for the exception are as follows:
Hence, a corporation that is a non-CCPC with a December 31st, 2023 year-end, would have to pay any balance owing on or before February 29, 2024 to avoid interest charges. If you are a CCPC, you would need to pay any balance on or before March 31st. It's important to consult with your tax accountant to ensure that you comply with the specific deadlines for your corporation's tax returns and tax payments.
For corporations, instalment payments are typically required if your taxes payable exceed a certain threshold. The due dates for instalment payments will depend on your filing status and previous year's tax liability. It's important to consult with your accountant or tax advisor to determine the specific instalment due dates and amounts for your corporation.
If your business is registered for Goods and Services Tax (GST) or Harmonized Sales Tax (HST), the specific deadlines for filing your returns and making payments will depend on whether you are a monthly, quarterly, or annual filer. The following chart illustrates the filing and payment deadlines for different types of filers.
If your business is an annual filer for GST/HST and your net GST/HST payable for the previous fiscal year was $3,000 or more, you may be required to make quarterly instalment payments for the current fiscal year. The specific due dates and amounts will depend on your individual tax situation. It's crucial to ensure that you make these instalment payments on time to fulfill your GST/HST obligations.
Note: Monthly and quarterly GST/HST filers do not need to make instalment payments for GST/HST.
For individuals looking to contribute to their Registered Retirement Savings Plan (RRSP) for the 2023 tax year, the deadline is February 29, 2024. It's important to note that exceeding the maximum allowable contribution amount may result in penalties. Therefore, it's crucial to review your contribution limits and ensure that you stay within the prescribed limits.
For sole proprietors and corporations who pay employees via payroll, a T4 slip must be filed by February 29, 2024. For corporations who paid a dividend to their shareholder, a T5 slip must be filed by February 29, 2024. Late filing T4 or T5 slips or failing to file them all together is a $100 penalty per slip up to a maximum of $7,500.
Navigating the world of tax deadlines can be complex, but with the right information, you can stay on top of your obligations and avoid penalties. Whether you're an individual taxpayer or a small business owner, understanding the specific 2024 tax deadlines is crucial for maintaining compliance with the CRA. Be sure to mark these dates on your calendar and consult with a tax professional to ensure that you meet all your tax obligations.
If you are looking for an accountant in Hamilton to provide professional guidance on your filing and payment obligations, contact us.
To learn more about other tax and accounting topics, explore the rest of our blog!
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting/tax professionals. NBG Chartered Professional Accountant Professional Corporation will not be held liable for any problems that arise from the usage of the information provided on this page.
