CRA Program Accounts: What Each One Does and When You Need It

 How Program Accounts Work

Your CRA business number is nine digits. Each program account adds a two-letter code followed by a four-digit reference number. If your business number is 123456789, your corporate tax account is 123456789 RC 0001 and your GST/HST account is 123456789 RT 0001.

Register for program accounts through CRA My Business Account. Registration is free and most accounts can be set up in 15 to 30 minutes.

The Five Program Accounts

RC — Corporate Income Tax

Used to file your T2 corporate tax return each year. Most incorporated businesses receive this account automatically when the business number is assigned. Confirm it is active in your CRA My Business Account profile before your first filing.

RP — Payroll

Required the moment you pay an employee, including yourself if you take a salary as a shareholder-employee. Used to remit Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax withheld from each payroll run. Remittances are due on the 15th of the month following the payroll run. Register before your first payroll, not after.

RT — GST/HST

Required once your total taxable revenues exceed $30,000 in a single calendar quarter or over four consecutive quarters. You can register voluntarily before that threshold to claim input tax credits on business expenses from day one. Your RT account number must appear on every invoice you issue.

RM — Import/Export

Required if your business imports goods into Canada or exports goods out of it. Used to process customs documentation with the Canada Border Services Agency (CBSA). Domestic service businesses do not need this account.

RZ — Information Return

Required if you pay investment income (T5 slips), process securities transactions (T5008 slips), or operate as a partnership filing a T5013. Most commonly needed by holding companies and businesses paying dividends or interest to shareholders. Many businesses that should have this account have never registered for it.

Which Accounts Do You Need?

For most newly incorporated Canadian businesses:

• RC: Always required if incorporated
• RP: Required as soon as you have employees or pay yourself a salary
• RT: Required once revenue crosses $30,000, or earlier if you want input tax credits
• RM: Only if you move physical goods across the Canadian border
• RZ: Only if you issue T5, T5008, or T5013 slips

Provincial Notes

In Quebec, businesses must register separately with Revenu Quebec for the Quebec Sales Tax (QST). The federal GST and QST are administered separately in Quebec, unlike HST provinces where both are combined into one CRA return.

In HST provinces (Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island), HST is collected and remitted through your RT account. In non-HST provinces (British Columbia, Alberta, Saskatchewan, Manitoba), federal GST goes through your RT account and provincial sales tax is handled separately through the provincial government.

FAQ

Do I need all five accounts?

Most businesses only need two or three. An incorporated business with employees and GST/HST-taxable revenue needs RC, RP, and RT. Add RM only if you import or export physical goods, and RZ only if you issue investment income or partnership slips.

When do I register?

Register before you need the account, not after. The payroll account (RP) must be active before your first payroll run. The GST/HST account (RT) must be registered within 29 days of crossing the $30,000 threshold.

Can I have multiple accounts of the same type?

Yes. The four-digit reference number at the end (0001, 0002, etc.) allows for multiples. Most businesses only need one of each.

What if I registered for an account I don't need?

You can close it through My Business Account after all returns are filed and balances are paid. You cannot close an account with an outstanding balance owing.

Is there a penalty for registering late?

For GST/HST, the CRA can assess penalties based on the tax you should have collected while unregistered. For payroll, interest applies on source deductions from the original due dates. Registering proactively avoids both.