The Canadian rules,
written to be quoted.
Holdback, subcontractor reporting, licensing in four provinces, and the rest of the compliance we all have to get right. Every claim on these pages links to the CRA page or the section of the Act it came from, with the date we last read it. Where we could not verify something, we left it out.
T5018 — reporting what you paid your subcontractors
If more than half your business income comes from construction, the CRA wants a T5018 for every subcontractor you paid more than $500 in the year. Thresholds, deadlines and penalties, sourced to the CRA.
Holdback and prompt payment in Ontario
The 10% basic holdback, the 28-day and 7-day prompt payment deadlines, and the 60-day lien window — quoted from the Ontario Construction Act with section numbers.
GST/HST when you build for a living
Which rate to charge on work in another province, when tax on holdback actually becomes payable, the $30,000 registration threshold, and what a sub's invoice needs before you can claim the ITC.
Licensing for contractors in Ontario
There is no general contractor's licence in Ontario — but building or selling a new home needs an HCRA licence, and electrical work for hire needs an ESA one. What applies to which work.
Licensing for residential builders in BC
BC licenses residential builders through BC Housing, and you cannot pull a building permit without proof of it. What the licence covers, and the owner-builder route with its ten-year liability.
Licensing for contractors in Alberta
Alberta has two separate regimes that catch different contractors — a prepaid contracting licence if you take money up front, and a residential builder licence if you build new homes.
Contractor licensing in Quebec
Quebec requires an RBQ licence for essentially anyone doing construction work for someone else. The exemptions are narrow, and the owner-builder one carries a $20,000 ceiling.
WSIB coverage when you work in construction
Since 2013 WSIB coverage is compulsory for independent operators, sole proprietors, partners and executive officers in construction. The home renovation exemption is narrower than most contractors think.
Plain-English summaries for contractors — not legal or tax advice. If there is a rule you keep having to look up, tell us and we will source it properly.