Reporting Business Income in Canada: Forms and Records

Your business structure determines how you report income in Canada. Keep records of sales, expenses, bank transactions and supporting documents throughout the year.

Sole proprietors generally report business or professional income on Form T2125 with their personal T1 income tax and benefit return. Farming and fishing activities use different forms.

Partners report their share of income on the return appropriate to their circumstances. Some partnerships must also file a T5013 Partnership Information Return. Check the CRA filing criteria before deciding whether a partnership return is required.

Corporations generally file a T2 Corporation Income Tax Return within six months after their tax year-end. The balance of corporate income tax is generally due two months after year-end, or three months where the CRA conditions are met. Instalments may also apply.

Before filing, reconcile bank and credit card accounts. Gather sales records, supplier invoices, receipts, payroll reports and prior-year returns. Separate personal spending from business expenses.

Keep the supplier’s name, invoices, payment dates and services provided for contractor payments. Canadian information-slip requirements depend on the payment and payer. Confirm the rules that apply to your circumstances.

Plan filing and payment separately: the deadlines can differ. Allow time to collect missing records and discuss instalment requirements with your accountant.

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CRA references: Sole proprietorship; Partnership; When to file your corporation income tax return; Balance-due day. Reviewed October 30, 2026.