Taxes

The Canada Revenue Agency is now administering Ontario's corporations tax, capital tax, corporate minimum tax, and the special additional tax on life insurers. All telephone enquiries should be directed to the CRA at 1 800 959 5525 or 1 800 665-0354 for teletypewriter (TTY). More

All incorporated businesses, including those incorporated inside and outside Canada, that maintain a permanent establishment (see Interpretation Bulletin 3008 Allocation of Taxable Income and Taxable Capital) in Ontario are liable for Ontario corporate taxes.

The major components of corporations tax are income tax and capital tax. Insurance corporations pay premium tax instead of capital tax.

For information regarding the calculation of these taxes please refer to the Guide to the CT23 Corporations Tax and Annual Return.

Who Should Be Registered

All incorporated businesses, including those incorporated inside and outside Canada, that maintain a permanent establishment in Ontario are liable for Ontario corporate taxes.  A permanent establishment can generally be described as a fixed place of business such as an office, farm, factory, branch,  warehouse etc.

Unincorporated businesses are not required to pay Ontario corporations tax.  These include sole proprietorships and businesses run by individuals as partnerships.  Owners of unincorporated businesses are, however, subject to personal income tax on an individual basis.

For information about registering a new Ontario corporation or information about registering  a corporation from outside Ontario, please visit the Service Ontario website.

For information about registering a federally incorporated company, please visit the Industry Canada website.