Corporate Tax Filing for Canadian Businesses
Running an incorporated business means filing a federal T2 and a provincial corporate tax return every year. Missing a deadline or filing incorrectly can trigger CRA penalties, interest, and reassessments that take time and money to resolve.
RMI LLP is a CPA firm serving incorporated businesses across Canada. We handle the full corporate tax process, from cleaning up year-end bookkeeping to filing your returns and managing CRA correspondence on your behalf.
What's Included in Your Corporate Tax Engagement
Federal T2 Income Tax Return
Prepared and filed electronically by our team of designated CPAs using CRA-certified software.
Provincial Corporate Tax Return
We handle your provincial filing requirements regardless of where your business is incorporated.
Year-end Financial Statements
Full financial statements and GIFI schedules prepared as part of your corporate tax engagement.
T4 and T5 Summaries
Payroll and dividend summaries prepared and filed with CRA where applicable.
CRA Correspondence
We handle CRA inquiries, requests for information, and follow-up on your behalf.
Year-end Tax Planning
We review your situation before year-end to identify tax savings while there's still time to act.
When are corporate taxes
due in Canada?
For most Canadian-controlled private corporations, your T2 return is due 6 months after your fiscal year-end. If your year ends December 31, your filing deadline is June 30.
The payment deadline is earlier. Taxes owing are due 2 months after year-end for most CCPCs, or 3 months for corporations that don’t qualify for the small business deduction.
If you miss the payment deadline, CRA charges interest from the day after it was due.
Can I file my own corporate
taxes in Canada?
Yes, but it’s more complex than it used to be. For tax years starting after 2023, electronic filing is mandatory for all corporations. Any T2 submitted on paper triggers an automatic $1,000 CRA penalty, with limited exceptions.
Most incorporated business owners find that a professional filing pays for itself through missed deductions recovered and errors avoided.
Will the structure of my business
affect the way I file taxes?
Significantly. Many incorporated business owners are leaving money on the table because their structure isn’t optimized for their situation.
The difference between a sole corporation, a corporation with a holding company, or a family trust structure can mean tens of thousands of dollars in tax deferral or savings per year, depending on how much income you’re retaining, whether you plan to sell the business, and how you want to pass wealth to family members.
Corporate structuring is a separate service we offer alongside tax filing. If you’ve been operating the same structure for years without reviewing it, that conversation is worth having.
How to reduce corporate taxes
in Canada?
There are legitimate strategies to reduce what your corporation owes, but they depend on your situation and structure. A few of the more common ones:
Salary vs. dividend split. The right mix depends on your RRSP room, other income, and CPP contributions.
Holding company structure. Can defer personal tax on retained earnings and protect business assets.
SR&ED credits. If your business develops new processes or technology, you may qualify for significant tax credits.
Year-end planning. The most effective strategies happen before the year closes, not after.
Do I need to register for a GST/HST number?
If your business has taxable sales exceeding $30,000 in a single calendar quarter or over four consecutive quarters, registration is mandatory. Once you hit that threshold you have 30 days to register.
Registering voluntarily before that threshold can make sense for some businesses, particularly if you’re making significant purchases and want to reclaim the GST/HST you’re paying.
It depends on your industry and whether your clients are themselves GST/HST registered.
How to estimate corporate
taxes in Canada?
For incorporated businesses earning under $500,000 of active income per year, the federal tax rate is 9%. Your provincial rate will vary by province. In Alberta, the provincial rate on income under $500,000 is 2%, for a combined rate of approximately 11%.
Income above $500,000 is taxed at the general corporate rate, which is higher. Talk to our team for a more accurate estimate based on your specific situation.
What documents do I need
to file corporate taxes?
Once your bookkeeping is complete, we’ll typically request:
- Access to your bookkeeping file (QuickBooks, Xero, or similar)
- Bank and credit card statements for the fiscal year
- Loan agreements and financing documents
- Your corporate minute book
- Prior year returns for new clients
- Any CRA correspondence received during the year
If your books aren’t in order, that’s not a dealbreaker. We can help you get there before we file.