Corporate Income Tax Returns

Most resident corporations in Canada must file a corporate income tax return (T2) for every tax year, even if there is no income or no tax payable (with some exceptions).

Which corporations file a T2?

Resident corporations

• Most Canadian-resident corporations must file each year (including certain inactive, non-profit, or tax-exempt corporations depending on status and rules).

Non-resident corporations

A non-resident corporation may need to file if it carried on business in Canada, had a taxable capital gain, or disposed of taxable Canadian property during the fiscal year (subject to specific exceptions).

When to file

• T2 returns are generally due within six months of the corporation’s tax year-end.
• Where tax is payable, payment deadlines can be earlier (commonly within three months of year-end depending on corporation type and rules).

Examples of filing deadlines

• Tax year end Dec 31 → filing due date Jun 30
• Tax year end Aug 31 → filing due date Feb 28/29
• Tax year end Nov 16 → filing due date May 16

Fiscal period basics

• A corporation’s fiscal period generally cannot be longer than 53 weeks.
• New corporations set the tax year on the first T2 after incorporation.
• Changing a tax year may require CRA approval depending on the circumstances.