Businesses – Tax information newsletter, Edition 2023-05 – December 21, 2023

The top changes this year that will affect business taxes in 2024

This year, there have been many announcements about changes that will affect business taxes in 2024. We have pulled them together here for quick reference, along with a list of resources that can help you manage these changes and your tax affairs in the new year.

Are you importing goods to Canada? Register on the CARM Client Portal today

Are you a business that imports goods to Canada using an import-export program account (RM)? If so, you need to familiarize yourself with the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) project, a Government of Canada initiative that’s transforming the collection of duties and taxes for goods imported into Canada.

As of May 2024, import-export program account (RM) registrations will only be available through CBSA’s CARM Client Portal. The CRA will no longer be providing this service.

How to claim home office expenses for 2023 tax year

The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses. Eligible employees who worked from home in 2023 will be required to use the detailed method which was the method used to claim home office expenses prior to the pandemic. Eligible employees who worked from home due to the COVID-19 pandemic could use a temporary flat rate method to claim home office expenses for the 2020, 2021, and 2022 tax years. This temporary flat rate method does not apply to the 2023 tax year.

Are you running a multilevel marketing business? Beware of potential tax schemes!

The CRA is always on the lookout for tax schemes and opportunities to warn Canadians about them. Has someone encouraged your small business to deduct personal expenses and claim business losses to offset taxable income? If so, this might be related to a tax scheme involving multilevel marketing (MLM). For more information on tax schemes and MLM tax schemes, visit our tax tip.

Get ready for second additional Canada Pension Plan contributions

Is your business ready for 2024 and the start of second additional Canada Pension Plan contributions (CPP2)? Click on the links below for an overview of how CPP2 contributions may affect you as an employer, your employees, or if you’re a self-employed individual.

• Employers and the 2024 CPP changes
• Employees and the 2024 CPP changes
• Self-employed and the 2024 CPP changes

For more detailed information about CPP2 and the Canada Pension Plan enhancement in general, please visit: canada.ca/cpp-enhancement

Information for employers on filling out T4 slips, including the new T4 CPP2 boxes, is available at: canada.ca/t4-information-employers

New reporting requirements for trusts

The Government of Canada has introduced new reporting requirements for trusts. Affected trusts will be required to file an annual T3 Trust income tax and information return (T3 Return), including a Schedule 15, Beneficial Ownership Information of a Trust, if applicable, with the CRA for tax years ending after December 30, 2023.

These new reporting requirements are part of Canada’s international commitment to the transparency of beneficial ownership information, as well as its continuous efforts to maintain the effectiveness and integrity of the Canadian tax system.

For more information on these new requirements, including information for bare trusts that may be filing for the first time, please refer to our frequently asked questions.

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