New CRA campaign focuses on Personal Services Businesses
For your corporation to be considered a personal services business (PSB),
– you, as the incorporated employee performing services, or any person related to you, is a specified shareholder of your corporation
– if your corporation did not exist, you, as the incorporated employee, would be considered an employee of the hiring business receiving your services
– your corporation does not employ more than 5 full-time employees throughout the tax year
– your corporation’s income is from services performed by you, as the incorporated employee, on behalf of your corporation
PSBs are not eligible for the small business deduction, or the general tax rate reduction.
For a more detailed guideline, please click the “Learn More” button below