> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tight.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Canadian Support

> Full native support for Canadian nuances, including input tax credit, provincial tax estimates, and more

## Overview

One size fits none when it comes to accounting, and that's why Tight has built native support for Canadian businesses.
Whether your user base resides solely in Canada or you're looking at adding Canadian support to your future roadmap
without dedicating development resources, Tight has you covered.

## Use cases

### Tax Estimates

Canadian users have to pay quarterly installments to the CRA, and Tight's [Tax Calculations API](/api-reference/tax-estimates/get-tax-estimates) makes it easy for you to provide your users with the income tax estimates needed to pay those installments.

Your users' [tax profiles](/api-reference/tax-profile/save-tax-profile) are formatted specifically for providing accurate Canadian estimates, including the following Canada-specific fields:

| Field                  | Description                                                                                                                                                                                                                                                 | Format                                            |
| :--------------------- | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :------------------------------------------------ |
| federalFilingStatus    | The [marital status](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-address-information/marital-status.html) of the user                                         | Must be one of the following: "SINGLE", "MARRIED" |
| taxState               | Two-letter province abbreviation                                                                                                                                                                                                                            | String                                            |
| annualW2Income         | Estimate of the user's annual wage total (aka T4 Income), before any tax withholdings                                                                                                                                                                       | Numeric, with 2 decimal places                    |
| spouseIncome           | Estimate of the user's spouse's annual wage total (aka T4 Income), before any tax withholdings                                                                                                                                                              | Numeric, with 2 decimal places                    |
| numDependents          | Number of dependents                                                                                                                                                                                                                                        | Numeric                                           |
| dependentIncome        | Estimate of the user's dependents' income                                                                                                                                                                                                                   | Numeric, with 2 decimal places                    |
| vehicleBusinessPercent | The user's estimated percentage of driving that was for business purposes (measured in km)                                                                                                                                                                  | Numeric, with 2 decimal places                    |
| autoSalesTax           | Whether the user wants the Tight API to automatically calculate sales tax, based on the province that each expense originated in. This is useful for calculating the input tax credit, which will be applied against any sales tax owed on business income. | Boolean                                           |

Additionally, the [tax estimates](/api-reference/tax-estimates/get-tax-estimates) themselves are returned with different attributes that are specific to how taxes are calculated in Canada. The response from GET /estimates contains a Canada-specific JSON object, with a vast amount of useful tax information as follows:

```json theme={null}
{
  "country": "CAN",
  "state": "QC",
  "year": 2022,
  "t4Income": 100000.00,
  "t4FederalMarginalTaxRate": 20.50,
  "t4StateMarginalTaxRate": 25.75,
  "spouseIncome": 0.00,
  "dependentIncome": 0.00,
  "cppContributionAmount": 0.00,
  "cppDeductionAmount": 0.00,
  "qppContributionAmount": 1589.57,
  "qppDeductionAmount": 794.79,
  "businessIncome": 29346.73,
  "expenses": 7336.68,
  "deductibleNonMileageExpenses": 7336.68,
  "deductibleVehicleExpenses": 0.00,
  "adjustedGrossIncome": 22010.05,
  "taxableNetIncome": 22010.05,
  "overallTax": 10988.22,
  "overallTaxSavings": 3796.73,
  "overallTaxUnpaid": 0.00,
  "federalTaxUnpaid": 0.00,
  "stateTaxUnpaid": 0.00,
  "annualPaymentDueDate": "2023-06-15 00:00:00.000",
  "afterTaxIncome": 11021.83,
  "federalTax": {
    "taxableIncome": 22010.05,
    "marginalTaxRate": 26.0000,
    "taxCredit": 0.00,
    "taxAmountWithoutTaxCredit": 5701.05,
    "preCreditEffectiveTaxRate": 25.90,
    "effectiveTaxRateBeforeWithholding": 25.90,
    "taxBeforeWithholding": 5701.05,
    "withholdingAppliedToTax": 0.00,
    "taxAmount": 5701.05,
    "effectiveTaxRate": 25.90
  },
  "stateTax": {
    "taxableIncome": 22010.05,
    "marginalTaxRate": 25.7500,
    "taxCredit": 158.96,
    "taxAmountWithoutTaxCredit": 5446.13,
    "preCreditEffectiveTaxRate": 24.74,
    "effectiveTaxRateBeforeWithholding": 24.02,
    "taxBeforeWithholding": 5287.17,
    "withholdingAppliedToTax": 0.00,
    "taxAmount": 5287.17,
    "effectiveTaxRate": 24.02
  },
  "salesTax": {
    "revenueSalesTax": 0.00,
    "expenseSalesTax": 0.00,
    "netSalesTax": 0.00
  },
  "quarterlyEstimates": {
    "q1": {
      "dueDate": "2022-03-15 00:00:00.000",
      "federalTax": {
        "taxOwed": 1425.26,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1425.26
      },
      "stateTax": {
        "taxOwed": 1321.79,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1321.79
      }
    },
    "q2": {
      "dueDate": "2022-06-15 00:00:00.000",
      "federalTax": {
        "taxOwed": 950.36,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 950.36
      },
      "stateTax": {
        "taxOwed": 881.37,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 881.37
      }
    },
    "q3": {
      "dueDate": "2022-09-15 00:00:00.000",
      "federalTax": {
        "taxOwed": 1425.26,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1425.26
      },
      "stateTax": {
        "taxOwed": 1321.79,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1321.79
      }
    },
    "q4": {
      "dueDate": "2022-12-15 00:00:00.000",
      "federalTax": {
        "taxOwed": 1900.17,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1900.17
      },
      "stateTax": {
        "taxOwed": 1762.22,
        "taxPaid": 0.00,
        "paymentsAllocatedFromPast": 0.00,
        "paymentsRolledOverToFuture": false,
        "paymentsBalance": 1762.22
      }
    }
  }
}
```

<Tip>
  The art of building great FinTech apps includes figuring out how to display complex financial data in a way that a given user base can easily digest it. Tight has iterated its tax UX through its own apps, with over 30 versions displayed to 700k+ users. Our team is willing and excited to share our proven UX learnings with you, fast forwarding you through your iteration process and ensuring that your first tax UX is a solid one. Reach out to our API team at [api@hurdlr.com](mailto:api@hurdlr.com), and our team will advise you on which attributes to display and how to do so clearly/concisely.
</Tip>

### Tax reporting

The [T2125](/api-reference/reports/t2125) is generally the most complex portion of any Canadian self-employed individual's tax filing, but Tight makes generating this form a breeze. A T2125 has to be filed for *each* sole proprietorship (line of business) that the user has participated in. Take a look at our [Canada Tax Reporting docs](/v5.0/products/taxes/tax-reporting/t2125-canada) to learn how to easily generate this tax report for each of your users' businesses.

### Accounting

[Tight's "Invisible" Double-Entry Accounting](/guides/business-owners/general-ledger) is enabled in the background, tracking the proper accrual basis transactions in each user's General Ledger. It's up to you whether you want to display this to your users.

Notably, for Canadian users, the [Chart of Accounts](/embeddable-ui/react/accounting/chart-of-accounts) includes an asset account for "Sales Tax Credit" as well as a liability account for "Sales Tax Payable". These accounts are used to store the sales tax paid on expenses as well as the sales tax owed on income, respectively. Tracking these values allows Tight's tax estimates to include the [input tax credits](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/complete-file-input-tax-credit.html) that the CRA extends to businesses.

And, if you use the `autoSalesTax` flag when setting up the user's [tax profile](/guides/business-owners/multi-currency/canadian-accounting#tax-estimates), that tracking will occur automatically.
