Compliance
Compliance Musts for Businesses: New CRA Corporation Updates Effective October-November 2025
Recent Canada Revenue Agency rules require businesses to register online, change the Voluntary Disclosures Program, and ensure short-term rentals are properly licensed to claim deductions.
By NomadicTax Research Team • 5-8 min read • November 22, 2025
## Key Updates for Canadian Businesses in Late 2025
**1. Online Business Number & Program Account Registrations (Effective November 3, 2025)**
New business numbers (BNs) or CRA program accounts must be registered **online**—the CRA is discontinuing phone-based registration. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/whats-new-corporations.html?utm_source=openai))
**2. Changes to the Voluntary Disclosures Program (Effective October 1, 2025)**
The program, which allows taxpayers to correct past non-compliance under certain conditions, is being updated to **simplify application requirements and clarify eligibility**. If you are considering self-disclosure, assess these changes. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/whats-new-corporations.html?utm_source=openai))
**3. Short-Term Rentals Compliance Requirements**
Individuals or businesses operating short-term rentals must comply with all applicable **municipal and provincial registration, licensing, permit, or operating requirements by December 31, 2024**, to be eligible to claim deductions tied to those operations. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/top-changes-affecting-business-taxes-2025.html?utm_source=openai))
## Practical Examples & Risk Mitigation
- A new startup should set up its CRA program account via My Business Account online from November 3 onwards to avoid delays.
- An owner of a short-term rental should verify local bylaws now and ensure any permits needed are secured; failure could result in denied deductions on expenses.
- Businesses with past non-compliance should evaluate whether the updated Voluntary Disclosures Program might let them avoid penalties, but they must ensure full disclosure under the new rules.
## Action Plan for Businesses
- Review registration practices: ensure your email address and business profile in My Business Account are current. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/whats-new-corporations.html?utm_source=openai))
- If you have an unresolved issue (e.g. undeclared income or GST/HST), consult your tax advisor to see if a voluntary disclosure now meets the new criteria.
- Short-term rental hosts should gather evidence of regulatory compliance (e.g. permits, licenses), to support deductions and audit defensibility.
**Bottom Line:** For businesses and entrepreneurs, the tail end of 2025 is bringing important compliance shifts. Staying on top of registration requirements, disclosure rules, and rental licensing will help avoid surprises and ensure deductions are safely claimed.