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The CRA treats regular payouts as business income on T2125, taxed at full marginal rates plus CPP. Only payouts actually received (not evaluation profits) are revenue.
How it's classified
Self-employment / business income (carrying on a business) when payouts are regular — not capital gains.
Tax rate
~15–33% federal + provincial; combined top ~44–54% by province. 100% of business income taxable.
Social contributions
CPP on self-employment net income (both shares, ~11.9% + CPP2 tier up to ceilings).
Registration / regime
Report on Form T2125 in the T1 return; quarterly installments if tax owing > ~$3,000. GST/HST registration once revenue > CAD 30,000.
Crypto payouts
USDC is 100% taxable business income at CAD value on receipt; later disposal is a separate gain/loss.
General information only — this is not tax or legal advice. Rules change and depend on your situation. Always confirm with a qualified tax professional in your country.
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