This will depend on whether or not you have incorporated your practice. If you incorporate, you will file a T2 Corporation Income Tax Return and a T1 Income Tax and Benefit Return. If you are a sole proprietor, you will be taxed as such and only required to file the T1 Income Tax and Benefit Return. Additionally, If you are part of a partnership, you would need to file a T5013 Partnership Return.
Before diving into what physicians need to file, check out our blog section on the new T4 requirements for medical professionals in Ontario.
The T1 General Income Tax and Benefit Return is the main tax return filed by individuals to calculate their annual personal tax liability. Individuals must report their total earnings from all sources including employment income, interest and dividends, capital gains, rental income, foreign income, etc.
The government also requires that all resident corporations file the T2 Corporation Income Tax every two years, regardless of whether or not there is an amount owing. These returns must be filed within six months of the end of the corporation’s tax year, which is determined by the end corporation’s fiscal period.
Lastly, the T5013 Partnership Information Return requires that, in addition to providing data on the partnership as a whole, each partner files an income tax return to report their personal share of the partnership’s net income or loss. This form is simply used to show the CRA financial information pertaining to a physician’s company but is not used to calculate tax liability.
Have further questions? or are interested in receiving assistance in filing these returns, contact one of our advisors today here – we are here to help!
