Know Your Small Business Tax Deadlines For 2023

Somehow we are almost one month into 2023 (!) and it is time for business owners (and individuals) to start thinking about one of their favourite subjects i.e. taxes. I have compiled a list of the deadlines that all of you should know and also updated my annual business tax deadline calendar.

Sign up to download our free Canada unincorporated business tax deadline calendar for 2023 or Quebec unincorporated small business tax deadline calendar 2023.

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Notes on Tax Deadlines for 2023

• The usual deadline for sales tax (GST/HST and QST) payments and income tax returns is April 30th. However, since this falls on a Saturday, the deadline is pushed to Monday, May 2nd, 2022.

• These deadlines relate to unincorporated business owners.

• April 30th is a Sunday so deadlines that usually fall on this date are pushed to Monday May 1st

• Due to the increase in interest rates overall, the amount of interest charged on late or overdue balances for both CRA and Revenue Quebec are higher in 2023. See links below for current rates:

  • CRA Prescribed interest rates

  • RQ Prescribed interest rates

SALES TAX DEADLINES

• GST/HST returns for 2022 must be filed by June 15th, 2023 for those who are required to file annually.

• GST/HST payments for 2022 are due by May 1st, 2023 If payment is not made, Revenue Canada (CRA) will start charging interest starting May 2nd.

• QST returns for 2022 are due by  June 15th, 2023

• QST payments for 2022 are due by May 1st, 2023.  If payment is not made, Revenue Quebec (RQ) will start charging interest starting May 2nd.   Since interest charged on late QST payments is higher than interest charged on income tax, it is better to prioritize payment of QST.

• GST/HST Instalments for 2023 must be paid on a quarterly basis for those whose net GST/HST payable was higher than $3,000 in the previous year.  GST/HST Instalments are due on May 1st, 2023, July 31st, 2023, October 31, 2023 and January 31st, 2024.  If instalments are not paid CRA will charge interest starting on the due date of the instalment.

• QST Instalments for 2023 must be paid on a quarterly basis for those whose net QST payable was higher than $3,000 in the previous year.  QST Instalments are due on May 1st, 2023, July 31st, 2023, October 31, 2023 and January 31st, 2024. If instalments are not paid RQ will charge interest starting on the due date of the instalment.

• See my post on Late filing penalties for GST/HST and QST.

• It should be noted that filing penalties and interest on overdue balances are not tax deductible expenses.

INCOME TAX DEADLINES

Ensure that you at least file your tax returns by the due date even if you are unable to pay the balance due. This will help you to avoid penalties for late filing, which are based on the balance payable.

• Income tax returns for individuals for the calendar year 2022 (January to December 2022) must be filed and paid by May 1st, 2023  If tax returns are not filed on time, penalties will be charged.  If tax returns are filed on time, but the balance due is not paid, only interest applies.

• Income tax returns for Self employed sole proprietors and partnerships I.e. any unincorporated business that include the T2125 in their returns have until June 15th, 2023.  This also includes spouses of unincorporated business owners even if the spouses don’t have self employed income. If tax returns are not filed by June 15th,  penalties will apply. 

• Although income tax returns for self employed unincorporated small business owners is due by June 15th, both CRA and RQ start charging interest on balances due starting May 2nd, 2023.  So if you choose to file between May 2nd and June 15th it is best to pay at least an estimate of taxes owing by May 2nd, 2023 to avoid or reduce interest costs.

• Instalments relating to the 2023 tax year are payable by March 15th, 2023, June 15th, 2023, September 15th, 2023 and December 15th, 2023.  If you are required to pay instalments as a sole proprietor (unincorporated business), you will be advised about the amounts and due dates by both Revenue Canada and Revenue Quebec via mail or by going to “my account” which is available online.  Note that generally if your income taxes payable exceed $3,000 in 2022, you are required to pay quarterly instalments for 2023, except if you live in Quebec where this amount is reduced to $1,800. Similarly if taxes payable owing to RQ exceed $1,800 you will be required to make instalments for 2023.

• It should be noted that if your instalments start for the first time as a result of exceeding the income threshold in 2022, instalment payments will only start September 15th, 2023. 

• See my post on Late filing penalties for income taxes.

RRSP CONTRIBUTION DEADLINE

All individual taxpayers have until March 1, 2023 to contribute to their RRSPs for the 2022 calendar year.  The maximum amount that you can contribute can be found on your 2021 notice of assessment or by going to CRA my account. Exceeding this amount will result in penalties so you want to be careful about how much you contribute.  It should also be noted that the higher your marginal tax rate, the more benefit you get from an RRSP contribution.  

PAYROLL DECLARATIONS (T4 AND RL1) DEADLINE

For Sole proprietors and corporations who pay employees via payroll:

• T4 Salary Declarations are due by February 28, 2023

• RL1 Salary Declarations for those with employees in Quebec are also due by February 28, 2023

• CNESST annual salary declarations (for those in Quebec) are due by March 15, 2023

With a little bit of preparation, filing your tax declarations on time is fairly straightforward and can help save you interest, penalties and the inevitable stress that comes with procrastination.

Download our free small business tax deadline calendar for 2022.

Ronika Khanna is an accounting and finance professional who helps small businesses achieve their financial goals. She is the author of several books for small businesses and also provides financial consulting services.