File & Pay Your Logging Tax
If you have logging operations in B.C., you must file an annual logging tax return. You must file a tax return even if you incurred losses or didn’t have any earnings from your logging operations.
- Logging Tax Return of Income (FIN 542S)
Use this tax return if you have income from the sale of B.C. logs, the sale of standing timber, the sale of timber rights or the export of logs.
- Logging Tax Return of Income for Processors (FIN 542P)
Only use this tax return if you process B.C. logs into primary or secondary forest products (e.g. lumber, shakes, shingles, poles, pulp, paper)
The tax return must be filed within six months of the end of the tax year in which the logging operations occurred.
If you owed more than $2,000 in logging tax in the previous tax year, you must make logging tax instalment payments in the current tax year. An instalment payment is a partial payment of the total amount of tax payable for the year.
Your first and second instalment payments must be equal to at least 50% and 25%, respectively, of the lessor of:
- The previous year’s tax
- The current year’s estimated tax
You must pay your instalments as follows:
- The 50% instalment payment by the end of the tax year
- The 25% instalment payment by the end of the third month following the end of the tax year
The remaining tax payable is due with the logging tax return six months after the end of the tax year.
You may be charged interest if you:
- Don't make instalment payments
- Make late or insufficient instalment payments
- Choose to pay instalments based on 50% and 25% of the current year's estimated tax, and the current year's estimated tax is less than both your actual tax and the previous year's tax
- Online using eTaxBC
- Through your bank or financial institution
- By mail or courier
- At a government office
If you’re not required to make instalments, you must pay the entire balance of tax owing on or before the logging tax return due date, which is six months after the tax year end.
Other Reporting Requirements
For tax years ending prior to June 3, 2010, if you have filed a waiver, an objection or an appeal under the federal Income Tax Act, you must also file a Waiver of Assessment Period (FIN 192) (PDF) under the Logging Tax Act.
For tax years ending on or after June 3, 2010, if you are issued a Notice of Assessment, reassessment, or an additional assessment from the Canada Revenue Agency that changes an amount relevant to the calculation of logging tax payable, you must notify us within 90 days of receiving that notice by forwarding a copy to the mailing address below.
Ministry of Finance
Income Taxation Branch
PO Box 9444 STN Prov Govt
Victoria B.C. V8W 9W8