Tax & Estate Planning Services Canada

Corporate Tax Return Filing in Canada (T2)

Who Must File a Corporation Income Tax Return (T2)

All resident corporations in Canada, except tax-exempt Crown corporations, Hutterite colonies, and registered charities, must file a T2 corporate tax return each tax year, even if no tax is payable.

This requirement covers:

• Non-Profit Organizations (NPOs)

• Tax-Exempt Corporations

• Inactive Corporations

Non-Resident Corporations Filing Requirements

Non-resident corporations must also file a T2 return if they:

• Carry on business in Canada

• Have a taxable capital gain

• Dispose of taxable Canadian property

This rule applies even when a tax treaty exempts the profits or gains.

Determining Your Corporation’s Tax Year

A corporation’s tax year is its fiscal period and cannot exceed 53 weeks (371 days).

For New Corporations

The first tax year starts on the date of incorporation. Ensure your financial statements or GIFI match the declared fiscal period. Future tax years begin the day after your previous year-end.

When to File Your Corporate Tax Return

File your T2 return within six months after the end of each fiscal year.

• If your tax year ends on the last day of a month, the return is due on the last day of the sixth month after year-end.

• If it ends mid-month, file by the same calendar day six months later.

When and How to Pay Corporate Income Tax

Corporations must pay income tax in monthly or quarterly instalments unless the total tax payable for the previous or current year (Parts I, VI, VI.1, and XIII.1) is $3,000 or less.

The final balance payment is due within two or three months of year-end, depending on the corporation type. Make all instalments and payments on or before their due dates to avoid penalties and interest.

Balance-Due Day

Most corporations must pay all taxes (excluding Parts III and XII.6) within two months of their tax year-end.

You may have three months if:

• Your corporation is a Canadian-Controlled Private Corporation (CCPC) throughout the year

• You qualify for or claim the Small Business Deduction (SBD) for the current or previous year

• Your taxable income (or combined income of associated corporations) does not exceed your business limit

Penalties for Late Filing

Filing late results in penalties:

• 5% of unpaid tax due on the filing date, plus 1% per full month late (up to 12 months)

If the CRA has previously issued a demand to file and you incurred a late-filing penalty within the last three years, the penalty increases to:

• 10% of unpaid tax, plus 2% per full month late (up to 20 months)

Why File with US

• CRA-compliant corporate tax experts

• Fast and accurate T2 return filing in Canada

• Reduced penalties and optimized tax savings

• Trusted by small businesses and corporations nationwide

File Your Corporate Tax Return Today

Avoid CRA penalties and ensure full corporate compliance.
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