When are corporate taxes
due in Canada?
In Canada, for most private corporation’s, tax filings are due 6 months after your corporate tax year end. For example:
- If your tax year ends March 31, your filing due date is September 30.
However, any taxes owed are typically due 3 months after the corporate year end.
Can I file my own corporate
taxes in Canada?
Yes, you can file your own corporate taxes, nevertheless it is strongly recommended to use an accounting professional.
Corporate tax filings can get complex and potential errors may increase the chances of future taxes that can arise from Government Audits or Reassessments.
You can find the link to the T2 Corporation Income Tax Return form below:
Form T2: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2.html
Will the structure of my business
affect the way I file taxes?
Yes, it absolutely will. Many Canadian entrepreneurs leave money on the table and don’t take advantage of available tax benefits.
Corporate structuring plays a major impact in how taxes are filed, it is important to have the right structure for you and your company to help minimize taxes.
How to file corporate taxes
You can paper file your T2 tax return or submit it electronically using CRA certified software. The other option is to hire an accounting professional to assist you in this manner.
We are here to help!
How to reduce corporate taxes
There is a lot of legitimate ways to save on business taxes in Canada. Every situation is unique though and as such it is always best to talk to a professional accountant that can provide you with additional guidance on this end.
Do I need to register for
a GST/HST number?
If you have taxable sales exceeding $30,000 annually you do need to register for a GST/HST number.
How to estimate corporate
taxes in Canada?
For incorporated companies earning under $500,000/year of profit in Canada, your federal tax rate is 9%.
Your provincial rate will vary by province but in Alberta your provincial tax rate on income under $500,000/year is 2%.
What documents do I need
to file corporate taxes?
The first step that needs to be completed is the bookkeeping of your corporation.
Once that is done, as accountants, we will typically request an access to the bookkeeping as well as bank and credit card statements, loan agreements, your corporate minute book and other items depending on the company activities in order to complete the required tax filings.