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Work permit allowed to offer tutoring services?

Discussion in 'Start Your Own Business in Canada – Self Employmen' started by Andreea955, Mar 17, 2019.

  1. Hi, I am currently on Open Work Permit and I want to offer Maths and English tutoring services. I am allowed? What do I need to make sure it is legal? Many thanks.
     
  2. Yes - you can since you hold an open work permit.
     

  3. Hi,
    Could you please inform me where do I need to register in order to
    Pay tax for the services. Can you provide a link for me to get more info please? Thank you very much!
     
  4. If you are going to be charging over the course of four rolling calendar quarters, the total amount invoiced will be less than 30k, you do not have to register for the GST/HST, HOWEVER, tutoring can fall under exempt supplies, which means you neither charge the tax, or claim the input tax credits for performing your services. Call up the CRA, ask the agent you need some clarifications on exempt supplies when charging the tax, and they will transfer you to the correct department. As for income tax, in either case you would file a T2125 for a self employed individual, and from this, after deducting your expenses, you would have your NET amount. This is the amount you transfer to your T1 and pay income tax off of.
    https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-gst/charge-gst-hst.html

    DO NOT start charging the GST/HST tax unless you have called the CRA. Charging the tax, when you should not, can cause HUGE problems for yourself'
    On the T2125, it will ask you if you are a Business, or a Professional. You would indicate you are a Business
     
  5. Have you started your business? Hope it goes well now. I also want to establish some businesses with my open work permit. I think I will start a year from now.
     

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