New Translator in Canada- Taxes
Thread poster: Nassima Nejjari (X)
Nassima Nejjari (X)
Nassima Nejjari (X)
Canada
Local time: 09:56
Arabic to Spanish
+ ...
Oct 25, 2021

Hello everyone,
I am Nassima, I have just come to Canada (three months ago) and I have been trying to contact Canada Revenue Agency, but I had no answer, so I hope someone here can help me.

- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.
(In Spain we had to file taxes 3 times per year, as freelancers, and then one more just like all workers)

- And If my income is equ
... See more
Hello everyone,
I am Nassima, I have just come to Canada (three months ago) and I have been trying to contact Canada Revenue Agency, but I had no answer, so I hope someone here can help me.

- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.
(In Spain we had to file taxes 3 times per year, as freelancers, and then one more just like all workers)

- And If my income is equal to or less than $30,000, do I have to do anything, like registration somewhere... or something like that to send my invoices?
(In Spain I had to be registered)


- More than 70% of my clients are not Canadian, do I have to pay the same taxes like the rest, or just pay taxes for the Canadian clients?
(In Spain we do have not to pay extra taxes for some foreign clients)

- Some clients ask me to give them my number, in Spain, we had a number, but here I only have my social insurance number, do I need to go somewhere to get a number, or just I don´t need to have any numbers here in Canada?

Thank you soooooo much!
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Eva Stoppa
Eva Stoppa  Identity Verified
Germany
Local time: 15:56
English to German
+ ...
Forum Translation in Canada Oct 25, 2021

Hi Nassima,

I cannot help you with your current question, but would like to suggest you ask your question in the Canadian Forum here in Proz.com as well. There might be colleagues living and working in Canada who might just be able to help you more efficiently.

Good luck!


Nassima Nejjari (X)
 
Adam Dickinson
Adam Dickinson  Identity Verified
Canada
Local time: 09:56
Member (2016)
Spanish to English
+ ...
A couple of notes Oct 25, 2021

Just to preface this, I'm hoping other Canadian freelancers see this and add their expertise, since it's entirely possible I may not have the whole story on some of these points!


- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.
(In Spain we had to file taxes 3 times per year, as freelancers, and then one more just like all workers)


Freelancers file their declarations annually like everyone else; the annual tax declarations has different sections for business and employment income. Most tax preparation software (Simpletax, Turbotax) make this process relatively easy.


- And If my income is equal to or less than $30,000, do I have to do anything, like registration somewhere... or something like that to send my invoices?
(In Spain I had to be registered)


The small supplier exemption generally applies* to people with revenue of less than $30,000, meaning that you don't need to register yourself with a business number or collect the HST. It's probably a good idea to sign up for your HST number earlier than later, because in a lot of cases you can deduct the HST you pay on business purchases. I'm in a similar situation to you (most of my clients are abroad) and the amount I send to the government in HST is generally less than what I get back in HST rebates on my own purchases.

*Note that if you live in a province that doesn't have the HST (i.e. a mixed GST/PST regime, or GST/QST in Quebec), the amount that qualifies you as a small supplier may be less than $30,000. Check your local regulations.

For more information on the small supplier exemption, these websites have useful information:
https://www.taxtips.ca/gst/small-supplier.htm
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html


- More than 70% of my clients are not Canadian, do I have to pay the same taxes like the rest, or just pay taxes for the Canadian clients?
(In Spain we do have not to pay extra taxes for some foreign clients)


The only difference is that customers who are outside of Canada do not pay the HST (or equivalent sales tax in your province).

Here's a good resource about some of the things you were asking about:
https://quickbooks.intuit.com/ca/resources/taxes/small-business-provincial-sales-tax/


- Some clients ask me to give them my number, in Spain, we had a number, but here I only have my social insurance number, do I need to go somewhere to get a number, or just I don´t need to have any numbers here in Canada?


You shouldn't give out your SIN, since that's considered confidential information. Once you start charging HST, you'll have to get a business number, which all your Canadian clients will see on your receipts when you charge them the HST. With foreign clients, I've generally just given them my passport number, since it does the job of identifying me and there's no need to explain exactly what a "Business Number" is to someone outside of Canada.


Nassima Nejjari (X)
 
Nassima Nejjari (X)
Nassima Nejjari (X)
Canada
Local time: 09:56
Arabic to Spanish
+ ...
TOPIC STARTER
Thank you Oct 25, 2021

Eva Stoppa wrote:

Hi Nassima,

I cannot help you with your current question, but would like to suggest you ask your question in the Canadian Forum here in Proz.com as well. There might be colleagues living and working in Canada who might just be able to help you more efficiently.

Good luck!



Stoppa, Thank you so much. I didn't know there was a forum just for Canadian translators.
It´s a good idea to put my questions there. thx


 
Nassima Nejjari (X)
Nassima Nejjari (X)
Canada
Local time: 09:56
Arabic to Spanish
+ ...
TOPIC STARTER
Thank you so much Adam! Oct 25, 2021

Adam Dickinson wrote:

Just to preface this, I'm hoping other Canadian freelancers see this and add their expertise, since it's entirely possible I may not have the whole story on some of these points!


- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.
(In Spain we had to file taxes 3 times per year, as freelancers, and then one more just like all workers)


Freelancers file their declarations annually like everyone else; the annual tax declarations has different sections for business and employment income. Most tax preparation software (Simpletax, Turbotax) make this process relatively easy.


- And If my income is equal to or less than $30,000, do I have to do anything, like registration somewhere... or something like that to send my invoices?
(In Spain I had to be registered)


The small supplier exemption generally applies* to people with revenue of less than $30,000, meaning that you don't need to register yourself with a business number or collect the HST. It's probably a good idea to sign up for your HST number earlier than later, because in a lot of cases you can deduct the HST you pay on business purchases. I'm in a similar situation to you (most of my clients are abroad) and the amount I send to the government in HST is generally less than what I get back in HST rebates on my own purchases.

*Note that if you live in a province that doesn't have the HST (i.e. a mixed GST/PST regime, or GST/QST in Quebec), the amount that qualifies you as a small supplier may be less than $30,000. Check your local regulations.

For more information on the small supplier exemption, these websites have useful information:
https://www.taxtips.ca/gst/small-supplier.htm
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html


- More than 70% of my clients are not Canadian, do I have to pay the same taxes like the rest, or just pay taxes for the Canadian clients?
(In Spain we do have not to pay extra taxes for some foreign clients)


The only difference is that customers who are outside of Canada do not pay the HST (or equivalent sales tax in your province).

Here's a good resource about some of the things you were asking about:
https://quickbooks.intuit.com/ca/resources/taxes/small-business-provincial-sales-tax/


- Some clients ask me to give them my number, in Spain, we had a number, but here I only have my social insurance number, do I need to go somewhere to get a number, or just I don´t need to have any numbers here in Canada?


You shouldn't give out your SIN, since that's considered confidential information. Once you start charging HST, you'll have to get a business number, which all your Canadian clients will see on your receipts when you charge them the HST. With foreign clients, I've generally just given them my passport number, since it does the job of identifying me and there's no need to explain exactly what a "Business Number" is to someone outside of Canada.






Thank you so much for all the information Adam.
I really appreciate the time you spent answering my questions. Thank you, this information helped me so much to understand the situation here. Thank you Adam!

[Editado a las 2021-10-25 16:22 GMT]


 
John Fossey
John Fossey  Identity Verified
Canada
Local time: 09:56
Member (2008)
French to English
+ ...
Income tax instalments Oct 26, 2021

Nassima Nejjari wrote:

- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.



As a freelancer, your tax return has to be filed by June 15 (not April 30 like employees) of the following year. However, you have to pay an estimated amount of 1/4 of your income tax each quarter of the current year - on March 15, June 15, September 15 and December 15. After your first year as a freelancer the CRA will send you a letter listing what it expects you to pay for the quarterly installments, based on your last year's income. Note that although your tax return is only due on June 15 of the following year, any tax owed that the quarterly instalments didn't cover is due by April 30. More info here: https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments.html

Also see https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals/filing-dates-tax-return.html under "Self-employed persons".


 
Nassima Nejjari (X)
Nassima Nejjari (X)
Canada
Local time: 09:56
Arabic to Spanish
+ ...
TOPIC STARTER
Is that for required for all freelancers? Oct 26, 2021

John Fossey wrote:

Nassima Nejjari wrote:

- I just wanted to know if freelancers do have to file their taxes in April, like the rest of the workers, or they have to do it more times.



As a freelancer, your tax return has to be filed by June 15 (not April 30 like employees) of the following year. However, you have to pay an estimated amount of 1/4 of your income tax each quarter of the current year - on March 15, June 15, September 15 and December 15. After your first year as a freelancer the CRA will send you a letter listing what it expects you to pay for the quarterly installments, based on your last year's income. Note that although your tax return is only due on June 15 of the following year, any tax owed that the quarterly instalments didn't cover is due by April 30. More info here: https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments.html

Also see https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals/filing-dates-tax-return.html under "Self-employed persons".





I think this is just for the ones who have an income that exceeds 30k, that's means more than 3k per month (in Ontario), right?
Cause my income is less than 30k per year, I think I don't have to do it. I hope so, cause I didn't know that, and I don't file the taxes in September.


 
Adam Dickinson
Adam Dickinson  Identity Verified
Canada
Local time: 09:56
Member (2016)
Spanish to English
+ ...
Quarterly instalments Oct 26, 2021

Nassima Nejjari wrote:

I think this is just for the ones who have an income that exceeds 30k, that's means more than 3k per month (in Ontario), right?
Cause my income is less than 30k per year, I think I don't have to do it. I hope so, cause I didn't know that, and I don't file the taxes in September.


You'll be asked to start quarterly instalments once your tax owing exceeds $3,000 per year. As John says, the CRA will get in touch with you.

Also, those are payments, not declarations - they'll just send you a letter saying when your quarterly payments are due. You only have to declare once per year by April 30 or June 15, depending on your situation. If you've never paid more than $3,000 in annual taxes and never gotten a letter from the CRA saying you have to pay monthly instalments, you don't need to worry about it.

Reference for the quarterly instalment system: https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments.html

[Edited at 2021-10-26 11:40 GMT]


 
Nassima Nejjari (X)
Nassima Nejjari (X)
Canada
Local time: 09:56
Arabic to Spanish
+ ...
TOPIC STARTER
Thank you Oct 26, 2021

Adam Dickinson wrote:

Nassima Nejjari wrote:

I think this is just for the ones who have an income that exceeds 30k, that's means more than 3k per month (in Ontario), right?
Cause my income is less than 30k per year, I think I don't have to do it. I hope so, cause I didn't know that, and I don't file the taxes in September.


You'll be asked to start quarterly instalments once your tax owing exceeds $3,000 per year. As John says, the CRA will get in touch with you.

Also, those are payments, not declarations - they'll just send you a letter saying when your quarterly payments are due. You only have to declare once per year by April 30 or June 15, depending on your situation. If you've never paid more than $3,000 in annual taxes and never gotten a letter from the CRA saying you have to pay monthly instalments, you don't need to worry about it.

Reference for the quarterly instalment system: https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments.html

[Edited at 2021-10-26 11:40 GMT]



Perfect, Adam
Thank you so much


 


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