A. Federal Income Tax
A non-resident corporation must obtain a “Business Number” from the Canada Revenue Agency and open an income tax account if it carries on business in Canada or disposes of taxable Canadian property. Although there is no requirement to open an income tax account prior to filing an income tax return for the first taxation year, a Business Number is generally required earlier for the purpose of opening a Federal sales tax—the Goods and Services Tax (GST)— account.
If the non-resident incorporates a Canadian subsidiary, a Business Number and income tax account are automatically provided for that subsidiary if the incorporation is under Federal law or the laws of the provinces of Ontario, Manitoba, British Columbia, Nova Scotia or New Brunswick. The Canada Revenue Agency generally mails out a notice confirming the Business Number and providing a summary of program accounts within 45 days of incorporation. For all other provinces (except Quebec), a Business Number is obtained and an income tax account opened by filing Form RC1.
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