M7 USA
M7 USA
Logo M7 Group
  • Why M7
  • Services
    • Bookkeeping
    • Business Formation
    • Corporate Tax
    • Cross-border Tax and Accounting
    • Financing Solutions
      • Bank Solutions for Small Business
      • Cashflow for Business
      • Cashflow for Trucking
    • Payroll
    • Tax Advisor
    • CRA Audit Protection
    • Virtual CFO
    • Personal Tax Easy tax filing
      File taxes today
    • Corporate Tax Business taxes
    • Bookkeeping Strengthen your core business
    • Payroll Managed payroll support
    Are you starting up a business?
    Launch your business online
  • Industries
    • Trucking
    • Construction
    • Food and Beverage
    • Sports, Arts and Entertainment
    • Startups and Entrepreneurs
    • Wholesale & Distribution
    • Trucking
    • Construction
    • Wholesale & Distribution
    • Food & Beverage
    • Sports, Arts & Entertainment
    • Startups & Entrepreneurs

    Business Tax Advisor

    Don’t leave money behind and keep more money in your pocket
    Schedule a Free Consultation
  • File todayPersonal Tax
    • Do-it-yourself
    • Review & File
    • Full Service
    • Self-employed
    • Do-it-yourself Start your simple tax return online for $0.
      MOST COMMON
    • Review & File Start your simple tax return included a review by M7 tax expert for $79.99.
    • Full Service A tax expert prepares, reviews, and files your taxes with 100% accuracy.
    Self-employed tax
    See pricing
Sign in to MyM7
Logo M7 Group
  • Why M7
  • Services
    • Bookkeeping
    • Business Formation
    • Corporate Tax
    • Cross-border Tax and Accounting
    • Financing Solutions
      • Bank Solutions for Small Business
      • Cashflow for Business
      • Cashflow for Trucking
    • Payroll
    • Tax Advisor
    • CRA Audit Protection
    • Virtual CFO
    • Personal Tax Easy tax filing
      File taxes today
    • Corporate Tax Business taxes
    • Bookkeeping Strengthen your core business
    • Payroll Managed payroll support
    Are you starting up a business?
    Launch your business online
  • Industries
    • Trucking
    • Construction
    • Food and Beverage
    • Sports, Arts and Entertainment
    • Startups and Entrepreneurs
    • Wholesale & Distribution
    • Trucking
    • Construction
    • Wholesale & Distribution
    • Food & Beverage
    • Sports, Arts & Entertainment
    • Startups & Entrepreneurs

    Business Tax Advisor

    Don’t leave money behind and keep more money in your pocket
    Schedule a Free Consultation
  • File todayPersonal Tax
    • Do-it-yourself
    • Review & File
    • Full Service
    • Self-employed
    • Do-it-yourself Start your simple tax return online for $0.
      MOST COMMON
    • Review & File Start your simple tax return included a review by M7 tax expert for $79.99.
    • Full Service A tax expert prepares, reviews, and files your taxes with 100% accuracy.
    Self-employed tax
    See pricing
logo-3-black-1-1.svg
MyM7
Corporate Tax, Business

How to Pay Taxes as Self employed in Canada?

February 3, 2025

Being self-employed in Canada comes with unique advantages and responsibilities. According to the Canada Revenue Agency (CRA), self-employment includes earning income from a business, profession, commission, farming, or fishing activity that you operate on your own or with a partner.

Benefits and Responsibilities of Self-Employment

Self-employment offers several perks, such as increased flexibility, autonomy, and creativity. Additionally, you can deduct specific expenses from your income to lower your tax liability. However, it also entails obligations like maintaining accurate records of your income and expenses, timely tax payments, and filing the appropriate tax forms.

Setting Aside Taxes

As a self-employed individual, it’s crucial to set aside funds for taxes, particularly for the Canada Pension Plan (CPP) and Employment Insurance (EI) premiums. Unlike employees, who have taxes deducted directly from their paychecks, self-employed individuals must calculate and remit their taxes, either quarterly or annually. This can be complex, especially if you’re not well-versed in the tax regulations and rates applicable to self-employed Canadians.

Types of Taxes for the Self-Employed in Canada

Self-employed individuals or independent contractors in Canada may be subject to two main types of taxes: income tax and GST/HST.

 

1. Income Tax

Income tax is levied on your net income (total income minus expenses) for the year. The amount you owe depends on your tax bracket, which is influenced by your taxable income and your province or territory of residence. Current tax rates and brackets are available on the CRA website.

As a self-employed individual, you must file two forms:

  • T1 General: The standard form for personal income tax.
  • T2125 Statement of Business or Professional Activities: This form requires you to report:
    • Total revenue from your business or profession.
    • Expenses incurred for goods and services related to your business.
    • Deductions for depreciation and other allowable expenses.
    • Net income or loss from your business.

 

2. GST/HST

Goods and Services Tax/Harmonized Sales Tax (GST/HST) applies to most goods and services sold or provided in Canada. Businesses collect GST/HST and remit it to the CRA. The rate varies by province or territory, and current rates can be found on the CRA website.

Navigating tax obligations as a self-employed individual can be challenging. However, understanding the basics and staying organized makes the process more manageable. At M7 Group, we help self-employed individuals manage their taxes effectively.

Our experts provide detailed guidance and up-to-date tax information to keep you compliant with the latest regulations. While referring to the CRA’s official resources is essential, M7 Group offers personalized support tailored to your needs.

With M7 Group, focus on growing your business, knowing your financial and tax matters are in capable hands. Let us simplify your tax journey and give you peace of mind.

Read more about Corporate Tax.

For more information on how M7 Group can assist you, and other tax-related matters, contact us today.

 

Meet the experts behind M7 Group: Adnan Khan, CPA; Matthew Lopes; and Marcos Lopes, PCP. Together, they provide comprehensive tax, accounting, and financial advisory services across North America.

For more information on how M7 Group can assist you and your business with TAX Services, financial clarity, and strategic growth planning, contact us today.

 
Book a free call
  • Accounting Services
  • Bookkeeping
  • Business Accounting
  • Business Benefits
  • Self-Employed
  • Tax Preparation
  • Tax Season

Post navigation

Previous
Next

Search

Categories

  • Bookkeeping
  • Business
  • Business formation
  • Construction
  • Corporate Tax
  • Cross-border
  • Payroll
  • Personal Tax
  • Software
  • Trucking
  • Virtual CFO

Related posts

Personal Tax

What is the TFSA Limit for 2025?

February 3, 2025

Your contributions are tax-deductible, and when it’s time to withdraw your funds to purchase your first home, those withdrawals are tax-free.

Business, Bookkeeping, Business formation, Construction, Corporate Tax

Why strong bookkeeping matters for Canadian construction industry?

February 3, 2025

Your contributions are tax-deductible, and when it’s time to withdraw your funds to purchase your first home, those withdrawals are tax-free.

Bookkeeping, Personal Tax

The Benefits of Bookkeeping: Understanding Your Business for Growth

January 31, 2025

As tax season approaches, many individuals and business owners grapple with a pressing question: “Should I hire a tax advisor?”

Facebook-f Instagram Tiktok Youtube Icon-linkedin

Company

  • About
  • Careers
  • Contact
  • Customers

Services

  • Bookkeeping
  • Business Formation
  • Corporate Tax
  • Cross-border Tax
  • Financing
  • Payroll
  • Personal Tax
  • Tax Advisor
  • Tax Consultant
  • Tax Protection
  • Virtual CFO

Resources

  • Blog
  • Ebook
  • FAQ
  • M7 Figures™
  • Ownr™ Partnership

Let's meet together

  • (905) 764-5664
  • [email protected]

© M7 Group™ 2012-2025. All Rights Reserved.

  • Terms & Conditions
  • Privacy Policy