FAQ

01. When do I file my 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 recognized by the CRA, they will consider the return filed on time if it is sent on the first business day after the filing deadline. You must file your return on time to avoid penalties. (Source : CRA website)

02. who has to file a corporation income tax return?

Resident corporations
All resident corporations (except tax-exempt Crown corporations, Hutterite colonies, and registered charities) have to file a T2 return for every tax year, even if there is no tax payable. This includes:

● non-profit organizations

● tax-exempt corporations

● inactive corporations

Non-resident corporations
A non-resident corporation must file a return if, at any time in the year, one of the following situations applies:

● it carried on business in Canada

● it had a taxable capital gain

● it disposed of taxable Canadian property

This requirement applies even if the corporation claims that any profits or gains realized are exempt from Canadian income tax due to the provisions of a tax treaty. (Source CRA website)

03. what is the deadline for personal income tax return submit?

If you are employed without business income you must submit your income tax return on May 31st of each year.

If you are self-employed or combined with a job and if you operate non-incorporated business, your deadline of income tax return is June 15 of each year. Also note your spouse is also allowed until June 15th of each year.

In both scenarios of self employed or employee you must remit your tax due by the last day of April each. If you failed to pay income tax by this date CRA may charge you penalty and interest.

04. Ways to file your tax return

To file your return, you may choose one secure option below.

Use electronic software
You will find a list of certified desktop, online, and mobile software products at canada.ca/netfile-software. Some of these products are free of charge.

On paper
If you filed your taxes on paper last year, the CRA will automatically mail you the 2019 Income tax package by February 17, 2020.

You can view, download and order forms at canada.ca/taxes-general-package or call the CRA at 1-855-330-3305 to order a copy.

By phone with File my Return
Those who are eligible will receive an invitation letter in the mail in mid-February, to use the CRA’s automated phone service called File my Return, you may be able to complete and file your return for free by phone. The personalized invitation is sent to eligible Canadians who have low or fixed incomes, and whose situation doesn’t change from year-to year.

The Community Volunteer Income Tax Program
If you have a modest income and a simple tax situation, volunteers at free tax clinics may be able to do your taxes for you, in-person, for free! Free tax clinics are generally offered between March and April across Canada, with some even open year-round. To learn more, or to find a tax clinic near you, go to Canada.ca/taxes-help. (Source CRA website)