In Canada/Ontario, in both cases of permanent and contract employment, is it possible that I request my employer that they pay me my full before-tax salary and I pay the tax at the end of the year myself?

This blog post might also be relevant:


And this question also:

Does your employer have to hold back taxes on your paycheque?

And, in Form T1, it is written that:

Reduction in tax deductions You can ask to have less tax deducted on your income tax and benefit return if you are eligible for deductions or non-refundable tax credits that are not listed on this form (for example, periodic contributions to a registered retirement savings plan (RRSP), child care or employment expenses, charitable donations, and tuition and education amounts carried forward from the previous year). To make this request, fill out Form T1213, Request to Reduce Tax Deductions at Source, to get a letter of authority from your tax services office. Give the letter of authority to your employer or payer. You do not need a letter of authority if your employer deducts RRSP contributions from your salary.

However, it is not explaining if it is possible to request in T1213 changing tax deduction at source to zero

I want my full tax paid to me and I pay the tax at the end of the year myself. I want to pay no tax on a monthly basis and pay all at the end of the year.

  • Have you tried asking your HR department? There could be company policy that prevents such.
    – Pete B.
    Jul 13, 2021 at 14:55
  • I want to know what is the government's rules and regulations in this regard
    – Amin Ba
    Jul 13, 2021 at 14:59

1 Answer 1


To make this request, fill out Form T1213, Request to Reduce Tax Deductions at Source, to get a letter of authority from your tax services office

T1213 has all of the fields necessary, but if you only want to have tax at source reduced to $0 "just because", you shouldn't be able to do it. You need to be able to justify any deductions you would have claimed at end of year to reduce the tax that was taken off at source.

Even if you did reduce your tax at source to $0, the next tax year CRA would realize that no tax at source was collected throughout the year, and they will then force you to pay tax by installment in subsequent years. And if you fail to pay those taxes by installment, you'll be charged interest.

Moreover, other items such as CPP and EI are not taxes so those will continue to come off, regardless. When an employer deducts CPP and/or EI to pay on your behalf, they pay their portion as well. I.e. for every $1 in CPP you pay, your employer has paid $1. If you try to defer that, you're basically telling your employer to keep track of what they didn't pay throughout the year, to pay at the end of the year on your behalf; no employer in their right mind would do that.

The nuance here is contract employment. If you are hired as a business to business contractor (i.e. you are incorporated and at an arms length relationship to the company contracting you, so you are treated as a vendor and not an employee), the company will pay your corporation gross proceeds. But as a corporation you still have to pay yourself a salary, and as that pay taxes (required). Also, you also have to pay HST (if you are over the minimum revenue threshold for HST). If you are a corporation though, you don't pay EI (but you will pay CPP); however CPP will be double since you now have to pay your personal portion, and the matching corporation portion.

Tax at source is there for a reason: (i) it ensures that people pay there taxes -- the probability that someone has saved enough through the year to consistently pay taxes at the end of the year as a lump sum is pretty low; (ii) recurring tax revenue helps keep the country going.

  • I am talking just about tax, not EI and CPP. At the end of the year, I am going to pay the tax of the year altogether. The point is that if you can have a negative tax claim at the end of the year, it is as if the government is loaning you and this is something good.
    – Amin Ba
    Jul 13, 2021 at 18:28
  • 3
    You can't; must pay taxes throughout the year- it is the law. If you don't, they'll come at you for tax by installment and start charging interest.
    – tendim
    Jul 13, 2021 at 18:31

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