In Canada, there are special numbers used to identify taxpayers. These numbers help the government and other organizations keep records and manage tax information accurately.
If you’re new to this topic, it can be unclear what the numbers are called and how they work. In Canada, the term "Taxpayer Identification Number" is used frequently — but it includes several different numbers.
Let’s break down what a TIN is, how to set it up, and how to ensure that it’s done securely so you can run your payroll smoothly.
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What is a taxpayer identification number in Canada?
A Taxpayer Identification Number (TIN) is a general term for unique numbers that the Canada Revenue Agency (CRA) uses to identify individuals and businesses for tax purposes. Canada doesn't officially use the term "TIN," but it covers several types of tax identification numbers.
The most common Canadian tax numbers include:
- Social Insurance Number (SIN): For Canadian citizens and residents
- Business Number (BN): For companies and organizations
- Individual Tax Number (ITN): For non-residents filing Canadian returns
These tax identification numbers in Canada are used when filing taxes, starting employment, or applying for government benefits. Each type serves a specific purpose and helps the CRA manage tax records for residents, workers, and companies.
Types of Canadian tax identification numbers
The Canadian tax system uses five main types of identification numbers. Each has its own format and specific use.
Social Insurance number (SIN)
A SIN is a 9-digit number formatted as 123-456-789. Canadian citizens and residents use this number for employment, personal tax filing, and accessing government benefits.
Business number (BN)
A Business Number is a 9-digit identifier for businesses and organizations. The complete format includes program codes like 123456789RT0001, where "RT" refers to GST/HST accounts, "RP" to payroll, and "RZ" to information returns.
Individual tax number (ITN)
An ITN is for non-residents who file Canadian tax returns but can't get a SIN. It's a 9-digit number starting with "9" (like 900123456). This starting digit separates ITNs from SINs.
Temporary tax number
The CRA issues temporary tax numbers for short-term needs when a permanent Canadian taxpayer ID isn't available yet.
Trust account number
Trusts use this 9-digit number for filing tax returns. The format is similar to a Business Number.
Who gets each type of Canadian tax ID
Different people and organizations get different types of tax identification numbers based on their situation.
Employees and job seekers
Anyone working in Canada gets a Social Insurance Number before starting employment. Employers verify this number to confirm work eligibility and report income to the government.
Non-resident individuals
People who don't qualify for a SIN but earn Canadian income get an Individual Tax Number. This includes foreign workers on short-term assignments or non-residents with Canadian investment income.
Canadian businesses
All businesses operating in Canada get a Business Number. This includes:
- Corporations
- Sole proprietorships
- Partnerships
- Non-profit organizations
Foreign companies with Canadian operations
Foreign companies hiring in Canada or conducting business here get a Canadian tax number for payroll and compliance purposes.
How to get a Canadian tax number
Getting a tax identification number involves three main steps, though the process varies by number type.
Step 1: Gather required documents
For a SIN, you'll provide government-issued photo ID and proof of legal status in Canada. Business Number applications require business registration documents and legal identification. ITN applications need identity proof and documents showing why you're applying.
Step 2: Submit your application
Social Insurance Numbers are handled by Service Canada. You can apply online, by mail, or in person. The CRA handles Business Numbers, ITNs, and Trust Account Numbers through their website, mail, or phone.
Step 3: Receive Your Number
Processing times vary:
- SIN: A few days online or in person, longer by mail
- Business Number: A few business days to several weeks
- ITN: Four to six weeks typically
Where to find your Canadian tax number
Your tax identification number appears on several official documents and online accounts.
For Personal Numbers
Your SIN or ITN appears on your CRA Notice of Assessment, T4 slips from employers, and in your CRA My Account online portal.
For Business Numbers
Business tax returns, GST/HST statements, and payroll remittance forms show your complete Business Number with program codes. The CRA's My Business Account online portal also displays this information.
Common uses for Canadian tax numbers
You'll encounter situations requiring your Canadian tax ID regularly.
Starting new jobs
Employers collect your SIN during hiring to verify work eligibility and report your income to the CRA. HR teams often use digital platforms to securely collect and store this information during onboarding.
Business tax registration
Companies use their Business Number when setting up GST/HST accounts or payroll accounts with the CRA. This number tracks business taxes, payroll remittances, and sales tax filings.
Filing tax returns
Individuals use their SIN (or ITN for non-residents) on personal tax returns. Businesses file using their Business Number.
Banking and investments
Canadian financial institutions require your SIN or Business Number when opening accounts or setting up investments. This helps with identity verification and tax reporting compliance.
Protecting tax ID information
Canadian tax identification numbers contain sensitive information requiring careful handling.
Access controls
Organizations limit access to tax IDs using role-based permissions. Only employees whose jobs require this information can view or use these numbers. This follows a need-to-know approach to minimize exposure.
Data encryption
Tax ID data stored in payroll software systems gets encrypted — a process that converts information into a coded format. This makes the data unreadable without proper authorization, protecting it from unauthorized access.
Secure Third-Party Sharing
When sharing tax IDs with payroll providers or benefits administrators, organizations use encrypted channels or secure portals. Access goes only to authorized contacts at the third-party organization.
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Frequently asked questions about Canadian tax numbers
What happens if an employee loses their Social Insurance Number card?
Service Canada does not issue physical cards anymore — employees just get a paper copy. If it is lost or stolen, employees need to contact Service Canada as their SIN needs to be cancelled or reissued, depending on the situation. Service Canada may issue a new SIN if there is evidence that the number was used fraudulently.
Can my business operate using only a provincial business registration number?
Provincial registration alone isn't sufficient for federal requirements. You still need a Business Number for tax filing, GST/HST registration, and payroll accounts with the CRA.
How long does Individual Tax Number approval take from the CRA?
ITN applications typically process within four to six weeks when all required documentation is provided correctly to the Canada Revenue Agency.
What are the consequences of processing payroll without valid employee tax identification numbers?
Employers face penalties for processing payroll without valid SINs or ITNs. Additionally, taxes can't be remitted properly and tax slips can't be issued correctly to employees.
