Business number registration in Canada

When you need a business number or Canada Revenue Agency program accounts

Certain business activities require a business number. You can register for:

  • a business number: a unique, 9-digit number and the standard identifier for businesses which is unique to a business or legal entity
  • Canada Revenue Agency (CRA) program accounts: two letters and four digits attached to a business number and used for specific business activities that must be reported to the CRA

When you need a business number

You need a business number if you incorporate or need a CRA program account.

You might need a business number to interact with other federal, provincial and municipal governments in Canada. For more information, go to Canada Revenue Agency registration and provincial or other federal programs.

Getting a business number as part of other registrations

You will get a business number if you:

  • register using Business Registration Online
  • register for any CRA program accounts (like GST/HST, Payroll deductions or Import-export)
  • incorporate your business federally
  • register or incorporate your business with these provinces:
    • British Columbia
    • Manitoba
    • Nova Scotia
    • Ontario
    • Saskatchewan
    • New Brunswick
    • Prince Edward Island

When you need a new business number

If you already have a business number and you want to change the legal ownership or the structure of your business, you may have to register for a new business number. For more information, go to Changes to your business and Canada Revenue Agency program accounts.

When you need CRA program accounts

Each CRA program account has its own rules and requirements about when you need to register.

The most common CRA program accounts a business may need are:

Other CRA program accounts are described below.

Registering for a CRA program account will get you a business number if you don’t already have one. If you already have a business number, the program account will be added to your business number. Your business will only ever have one business number.

CRA program account numbers

Business number, 123456789. Program identifier, RP. Reference number, 0002.

A CRA program account number has three parts:

  1. the 9-digit business number to identify the business
  2. a 2-letter program identifier code to identify the program account
  3. a 4-digit reference number to identify an individual program account (since businesses can have more than one of the same kind)

Source: CRA

Canada launches consultations on proposed Luxury Tax

Taxes help pay for the government programs and services that Canadians depend on. They provide a social safety net on which all Canadians can rely in times of crisis.

The impact of the COVID recession has been very uneven. Some Canadians have lost their jobs or small businesses, while some sectors of the economy have flourished. That’s why it is fair today to ask those Canadians who can afford to buy luxury goods to contribute a little bit more. To that end, the recent budget followed through on the government’s commitment to introduce a tax on select luxury goods.

This proposed Luxury Tax would apply on the sale of new luxury cars and aircraft with a retail sale price over $100,000, and new boats over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above these thresholds ($100,000 for cars and aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury car, boat or aircraft. The tax is proposed to come into force on January 1, 2022.

Today, through the Department of Finance, the Government of Canada is launching consultations with stakeholders on the design of the proposed Luxury Tax.

Full details on the government’s proposed approach can be found in the related background paper. Stakeholders are invited to provide their views on the government’s proposed approach by September 30, 2021. Details on how to participate can be found in the consultation notice, which is linked below.

Source: CRA

The Tax-Free Savings Account

Saving just got a whole lot easier!

The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.  Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible. 

Topics

Source: CRA