Do you work in the gig economy? Here’s what you need to know
April 29, 2021
Canada Revenue Agency
What is the gig economy?
The gig economy is based on temporary and freelance work, or short-term contracts. If you are connecting with clients through online platforms or applications (apps) such as Clickworker, Crowdsource, or Fiverr to provide them with your services, you are typically considered to be self-employed instead of an employee. Your work may be carried out anywhere, as online platforms can connect businesses and independent contractors from all over the world.
Income tax obligations
As a resident of Canada, you must report your income from all sources on your income tax return. This includes any income you earn from businesses outside the country.
If you paid tax on foreign income, you could be eligible for a tax credit. Also, you can claim eligible expenses relating to income you earned through the gig economy. To claim expenses, you must maintain proper financial records, including:
- a list of all money earned from gig work
- details about when, how and where you made this money
- details of the expenses you incurred to earn this money, supported by invoices, receipts, or vouchers
There may be a reasonable expectation of profit from your online activities, and your total taxable supplies may be more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the Canada Revenue Agency the goods and services tax / harmonized sales tax (GST/HST) on all taxable sales from your services made inside and outside of Canada. You can get more details on GST/HST registration requirements at Find out if you must register for a GST/HST account.
How to correct your tax affairs
If you did not report your income from your participation in the gig economy, you may have to pay tax, penalties and interest on the income. By correcting your tax affairs voluntarily, you can avoid or reduce penalties and interest.
To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:
- Ask for a change to your income tax and benefit return
- Adjust a GST/HST return
- Apply for a correction through the Voluntary Disclosures Program
For more information
You can find more information on this topic at Canada.ca/platform-economy.
Canada Revenue Agency
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