Tax Guide/Corporate tax
Shareholder loans
Updated November 4, 2026
A corporation is separate from its owner. Money you take that is not salary, dividends or an expense repayment usually goes into a shareholder loan account.
The main rule
If you owe the corporation, the amount is generally added to your income unless it is repaid within one year after the end of the corporation's tax year. Repeatedly repaying and re-borrowing may not work.
If the loan carries low or no interest, you may also have a taxable benefit based on the CRA's prescribed rate, which is 3% for the fourth quarter of 2026.
Using the corporate account for personal bills creates problems quickly. Reimburse yourself properly and keep it separate.