File your T2 corporation income tax return online with T2inc.ca

​The T2 Corporation Income Tax Return is the mandatory form that all resident corporations in Canada, except for tax-exempt Crown corporations, Hutterite colonies, and registered charities, must file annually with the Canada Revenue Agency (CRA). This requirement applies regardless of the corporation's activity level or income during the tax year; even inactive corporations are obligated to submit this return.

The T2 return provides a comprehensive overview of the corporation's financial position, including income, deductions, and taxes payable, ensuring compliance with Canadian tax laws. For most corporations, this single return serves both federal and provincial or territorial tax purposes, except for those operating in Quebec, with a CO-17 tax form, or Alberta, which require separate provincial filings.

In Canada, all corporations, including non-profit organizations, tax-exempt entities, and inactive corporations, are required to file a T2 Corporation Income Tax Return annually, regardless of income or activity levels.

This obligation extends to both resident and non-resident corporations that have conducted business in Canada, disposed of taxable Canadian property, or earned taxable capital gains during the tax year. Even if no tax is payable, the T2 return must be filed to meet legal obligations. Failure to file can result in penalties or interest for late filing, underscoring the importance of compliance with Canadian tax regulations.

In Canada, corporations are required to file their corporate income tax return within six months after the end of their fiscal year. For example, if your corporation's tax year ends on March 31, your filing deadline would be September 30. If the last day of your tax year falls on a weekend or public holiday, the return is considered timely if filed on the next business day. ​

It's important to distinguish the filing deadline from the payment deadline. While the return itself is due six months after the fiscal year-end, any taxes owed are generally due within two months following the end of the tax year. However, if your corporation is a Canadian-controlled private corporation (CCPC) and has claimed the small business deduction, you may have up to three months to pay any taxes due. ​

Canadian corporations that owe more than $3,000 in taxes for the current or previous year are generally required to make monthly installment payments. Some corporations may qualify to pay quarterly if they meet certain criteria, such as being a Canadian-controlled private corporation (CCPC) with taxable income under $500,000 and capital used in Canada under $10 million.

Installment payments help avoid large lump sum payments at the end of the year and avoid penalties for underpayment. If your corporation is required to make payments, they can be made through your financial institution's online portal by selecting the CRA or Revenu Québec as the payee. Be sure to check the exact payment deadlines to avoid interest charges.

Failing to file your corporate tax return on time can result in significant penalties. The Canada Revenue Agency (CRA) imposes a penalty of 5% of the unpaid tax at the filing deadline, plus an additional 1% for each full month the return is late, up to a maximum of 12 months. For Canadian-controlled private corporations (CCPCs) eligible for the small business deduction, timely filing is crucial to maintain eligibility for certain tax credits and deductions. Non-resident corporations that have carried on business in Canada must file a T2 return, and failure to comply can lead to similar penalties.

To avoid these penalties and ensure compliance with income tax purposes, corporations in Canada must file their income tax returns promptly, accurately reporting their net income and any active business income.