Taxes in Canada: Need help demystifying it all.
Leaky Penny (1616 points) | Mon, 2009-07-27 16:44So I want to go out on my own full time, and rely solely on my designing as a living. The one thing I can't seem to find any info on (after numerous google searches)are taxes in Canada. Specifically, how do I pay them, what benefits do I get, and so on and so forth. Any ideas, links or tips?
Leaky Penny
www.leakypenny.com
We artists are indestructible, even in a prison cell or concentration camp I would be almighty in my own world of art. Even if I had to paint my pictures with my wet tongue on the dusty floor of my cell. - Pablo Picasso
which I'll go through tonight, but seems to have all the info needed.
http://www.canadabusiness.ca/servlet/ContentServer?pagename=CBSC_ON/CBSC_WebPage/CBSC_WebPage_Temp&c=CBSC_WebPage&cid=1176175886705&lang=en
Leaky Penny
www.leakypenny.com
We artists are indestructible, even in a prison cell or concentration camp I would be almighty in my own world of art. Even if I had to paint my pictures with my wet tongue on the dusty floor of my cell. - Pablo Picasso
The Readers' Digest version:
1) Obtain a Business Number from your local Canada Revenue Agency, which will also set you up for remitting the GST. (tel # is 1-800-959-5525)
2) Obtain an RST from the Ministry of Revenue. I did mine over the phone: 1-800-265-2303
I file taxes for both the GST and RST quarterly online. There really is no benefit except you have to do it or face the wrath of McGuinty's crew.
If you file ahead of time with the retail sales tax they do at least kick you back 5% for doing the math and paperwork.
Congrats on going on your own!
Cheers.
3dog
"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber
What should be my income when doing all of that? If i only make a certain amount, is it even worth it? And right now I have a full time job, so how does that affect anythin?
Woo! This is gonna be fun!
Thanks for your help!
Leaky Penny
www.leakypenny.com
We artists are indestructible, even in a prison cell or concentration camp I would be almighty in my own world of art. Even if I had to paint my pictures with my wet tongue on the dusty floor of my cell. - Pablo Picasso
I believe that it is anything under $30K annually does not require a GST account...but you will need to verify that when obtaining your BN.
And the RST guys are a whole other ballgame...not sure what their rules are except when I called them I was told I was to charge and collect the RST upon opening my new business (went freelance 1.8 years ago). Also, if your clients are RST (more commonly referred to as PST) exempt, you will need to have them fill out the following form (on page 4 of this downloadable PDF guide):
http://www.boxercase.com/RST_exempt.htm
and remit to you to keep on record if ever questioned why you didn't charge your client(s) the RST/PST. Please note that there is probably a newer version kicking around out there...this is just a sample of what I found.
Cheers.
"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber
This is a really useful thread. Thanks for all the answers.