A T5018 (Statement of Contract Payments) is a tax form used in Canada by businesses in the construction industry to report payments made to subcontractors. It helps the Canada Revenue Agency (CRA) track income earned by contractors and ensure proper tax reporting.

Businesses or individuals involved in construction activities must file this form if they pay subcontractors for construction services. It applies to payments of $500 or more in a calendar year. The report must include payments made for construction-related services, the total amount paid during the reporting period, and the subcontractor’s name, address, and Business Number (BN) or Social Insurance Number (SIN), if applicable.

The T5018 must be submitted to the CRA within six months after the business’s fiscal year-end. For example, if the fiscal year ends on December 31, the form is due by June 30 of the following year.

This form is important because it helps the CRA track unreported income in the construction sector, ensures subcontractors report their earnings correctly, and reduces tax evasion while improving compliance.

Businesses can file the T5018 either by submitting a paper form or electronically through the CRA’s internet file transfer or My Business Account. To learn more about the T5018 and ensure compliance, reach out to Fiscal Performance for expert guidance and assistance.