According to Revenu Québec, from a tax perspective, a self-employed worker is an individual who, under a verbal or written agreement, commits to performing physical work or providing a service to another person—their client—in exchange for a price the client agrees to pay. A self-employed worker may also own a business or work as a commission-based salesperson.


Here are some criteria distinguishing a self-employed worker from an employee:

​There is no relationship of subordination between the self-employed worker and their client;

There is no employer-employee relationship, as exists for a salaried employee;

In most cases, the self-employed worker covers their own expenses;

​They personally bear the financial risks inherent in their work;

​They provide their own equipment but are not required to perform the work personally;

They may have employees or engage other self-employed workers.

 

Rights and obligations of the self-employed worker

Income earned by a self-employed worker or a partner in a partnership (e.g., a limited partnership) is reported on their personal income tax return. This differs from the income of a corporation or incorporated company, where income is reported on a return separate from that of its shareholders.

Example: For the 2013 tax year, a self-employed worker must file their income tax return by June 15, 2014, and pay their taxes by April 30, 2014.


Tax deductions for the self-employed worker

A self-employed worker may deduct—on their personal income tax return—any expense incurred in connection with their business activities. These expenses must be supported by documentation, such as invoices and contracts.


Filling out your tax return efficiently