📢 The $30,000 GST/HST Registration Rule:
If your gross taxable self-employment revenues exceed **$30,000 CAD** in a single calendar quarter or over four consecutive quarters, you must register for a CRA GST/HST account. Once registered, you must collect sales tax from Canadian customers and file GST/HST returns.
Self-Employment Expense Estimator
Input your business revenues and expenditures below to estimate total eligible tax write-offs on Form T2125:
Standard CRA Self-Employment Deductions
Sole proprietors in Canada can write off business expenses, provided they are reasonable and incurred to earn business income:
- Meals and Entertainment: Limited to **50% deduction**. If you take a client to lunch, you can only write off half of the receipt.
- Capital Cost Allowance (CCA): You cannot deduct the full cost of capital purchases (computers, vehicles, office buildings) in the purchase year. Instead, you must depreciate them using CRA’s set CCA classes (e.g. 55% for Class 50 computers).
- Salaries and Subcontractors: If you hire assistants or contract freelancers to help with client delivery, their full invoices and wages are 100% deductible business expenses.
T2125 Metrics
GST/HST Threshold$30,000 CAD
Meals Limit50% Deduction
Audit Archive6 Years Record Keeping
Filing ModeIntegrated with T1