You need to know your Industry Code when you're filling out your T2125 Statement of Business Activities as part of your T1 income tax return. (See Canadian Income Tax: Must You Fill Out Form T2125? for more details.)
Here's the list of Industry Codes you get to choose from (Canada Revenue Agency).
The catch is that you need to choose the Industry Code that fits your main business activity best - which I always find a bit of a scavenger hunt as the powers-that-be haven't caught up to the Internet age and seem to have a limited view of professions.
For instance, there is no appropriate industry code for writers and/or editors under Professions - "541990 Other professional, scientific or technical services" is as close as it gets. Thinking about Web designers, bloggers and SEO experts, just to name a few professionals that work the 'Net, I can see that "519130 Internet Publishing and Broadcasting" is going to get a lot of use.
But remember, the Industry Code you choose doesn't have to describe exactly what you do or all of what you do. Choose the general category your main business activity fits into (such as business services, construction or retail stores) and work from there.Want more information on completing and filing the T1 income tax form? Your First Business Income Tax Return will lead you through the process.
If you want to use tax preparation software to check out different tax scenarios or prepare your own income tax, Top Canadian Income Tax Software presents what I think are the best choices for small businesses.
More Income Tax Help
- Canadian Income Tax and Your Small Business
- Canadian Income Tax FAQs for Small Businesses
- Business Expenses as Tax Deductions Index
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