Taxation

Income tax rules and tax planning for woodlots are complex and information must be carefully applied to each individual situation.

Property Taxes
Information regarding property taxes may be found in the Tax Minimization section.

Harmonized Sales Tax (HST)
Gross Annual Revenue $30,000 and More
Any individuals or businesses selling goods or services in Nova Scotia with a gross annual revenue of $30,000 or more is required by federal law to obtain HST registration.

  • HST paid when purchasing goods and/or services for the business is refunded
  • HST must be collected on what is sold to customers

Gross Annual Revenue Less Than $30,000
Any individuals or businesses selling goods or services in Nova Scotia with a gross annual revenue of less than $30,000 is not required to obtain HST registration, but may if they wish to.

If they do not register:

  • HST paid when purchasing goods and/or services for the business is not refundable
  • HST is not collected on what is sold to customers.

If they do register:

  • HST paid when purchasing goods and/or services for the business is refunded
  • HST must be collected on what is sold to customers
  • HST registration information may be obtained through contacting Service Nova Scotia and Municipal Relations Provincial Tax Commission and Canada Customs and Revenue Agency.

Income Tax
Discussion of income tax as it applies to Nova Scotia woodland may be found in the NSDNR Woodlot Management Home Study Course Module 10B, Managing Woodlot Finances. Information includes:

  • Business income and capital gains
  • Business types and choosing the right one
  • Nature of the business
  • Record keeping; receipts/revenues; expenses
  • Investment tax credits; capital gains; change-of-use; government grants; year end; income splitting; clawback

Information may also be obtained from the Canada Customs and Revenue Agency (CCRA), including the following:

Resources

Canada Customs & Revenue Agency (CCRA)
1-800-959-8281 (Individual)
1-800-959-5525 (Business)
List of Toll Free Telephone Numbers

Canadian Council of Forest Ministers
Private Woodlot Taxation Task Force