General Contractor

Tax guide for Canadian self-employed general contractors and construction managers

Allowable Expenses

• Subcontractor costs — Labour costs paid to other trades — get invoices for each payment
• Materials (COGS) — All materials purchased for client projects — track by project
• Vehicles & equipment — Truck, site equipment — business-use proportion of costs
• Contractor liability insurance — General contractor liability and builder's risk insurance
• Project management tools — Procore, BuilderTrend, CoConstruct subscriptions
• Builder's risk insurance — Course-of-construction (builder's risk) insurance for active build projects

Tax Tips

• Subcontractor payments require invoices — CRA expects clear documentation of trades paid
• Builder's risk insurance on active construction sites is a deductible project cost
• Track all materials per project as cost of goods sold — not overhead
• T4A slips must be issued to unincorporated subcontractors paid over C$500 in a calendar year

Frequently Asked Questions

Do I need to issue T4A slips to my subcontractors in Canada?

Yes — if you are self-employed and pay an individual contractor C$500 or more in a calendar year, you must issue a T4A slip (Box 048) to report the payments. This is required for unincorporated subcontractors. Incorporated subcontractors receive invoices instead.