• This information pertains to someone that is not incorporated but works as a business or a subcontractor.  

• You can be both an employee and self-employed. Income from both is reported on your personal tax return.

• A self-employed tax return is more involved than a regular tax return.  Hiring a professional can save you money with our advice on deductions and reporting.  

• As a self-employed person, you are taxed on the profit made from your business. Your gross professional income goes on line 13699 of your tax return. You are able to deduct the expenses of running the business on a T2125 and the net income goes on line 13700.

• A Canadian resident pays Canadian taxes on all income, wherever you make it. If you earn money abroad, you may have to pay tax to the foreign country on that income, depending on their laws and the tax treaties they have with Canada.  However, any foreign tax you pay can be used on your Canadian tax return.  Be sure to get an official statement from that country.

• Depending on your type of work, the following expenses may be claimed:

• Advertising

• Automobile: i.e. gas, insurance, parking, maintenance and repairs

• Bad debts

• Business taxes, Fees, and Licenses

• Delivery, Freight, and Express

• Insurance

• Interest

• Management and Administration fees (agency fees) 

• Meals and Entertainment (50%)

• Office expenses

• Legal/Accounting fees

• Rent

• Salaries/Wages paid to others.  You cannot pay yourself salaries or wages, you claim whatever is left when all the expenses are paid.

• Travel for work purposes

• Telephone and Utilities

• Business use of your home (a portion of rent, utilities, insurance, mortgage interest, strata, property taxes some  home expenses)

• Medical & Dental coverage

• Capital cost allowance on large asset purchases (better known as Depreciation)

  Performer Specific:

• Dressing room supplies 

• Hair & Makeup, but only if you must provide them for work

• Location transportation

• Out of town expenses

• Professional journals

• Professional development

• Tickets to shows relating to what you do.

• Union dues

• Part of ACTRA fraternal deductions goes to medical insurance. They will send a receipt for the insurance premiums you have paid.

• Wardrobe that is worn specifically for work.

• Work permits prior to being a union member

For more information, refer to the Business and Professional Income Guide: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html/.