All resident corporations (except tax-exempt Crown corporations, Hutterite colonies and registered charities) have to file a corporation income tax (T2) return every tax year even if there is no tax payable. This includes:
- non-profit organizations
- tax-exempt corporations
- inactive corporations
It is mandatory for certain corporations with annual gross revenues that exceed $1 million
Types of industries we provide services: –
- Transportation
- Retail & Wholesale
- Construction Industries
- Auto Body Shops
- Professional Corporations
- Import & Exports
- Manufacturing Industries
- Travel Corporations
- NOT FOR PROFIT ORGANIZATION
- IT Corporations
When to file your corporation income tax return
File your return no later than six months after the end of each tax year. The tax year of a corporation is its fiscal period.
When the corporation’s tax year ends on the last day of a month, file the return by the last day of the sixth month after the end of the tax year.
When the last day of the tax year is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year.
Example
- If your tax year ends March 31, your filing due date is September 30.
- If your tax year ends August 31, your filing due date is February 28.
- If your tax year ends September 23, your filing due date is March 23.
When the T2 filing deadline falls on a Saturday, Sunday, or public holiday, we will consider the return filed on time if it is sent on the first business day after the filing deadline. For more information, go to Important dates for corporations.
You must file your return on time to avoid penalties.
Note
You must file a return no later than three years after the end of a tax year to receive a tax refund.
Penalties
What happens if you file your return late?
If you file your return late, a penalty applies. The penalty is 5% of the unpaid tax that is due on the filing deadline, plus 1% of this unpaid tax for each complete month that the return is late, up to a maximum of 12 months.
The corporation will be charged an even larger penalty if we issued a demand to file the return under subsection 150(2), and if we assessed a failure to file penalty for the corporation in any of the three previous tax years. The penalty is 10% of the unpaid tax when the return was due, plus 2% of this unpaid tax for each complete month that the return is late, up to a maximum of 20 months.