Corporate Tax Return Filing

Corporate Tax Return Filing

Annually t2 tax return filing is compulsory for every corporation in Canada. The Corporate T2 Tax Returns have to be filed in all cases even if the company has not yet started its operations/business after incorporation or even if there is zero tax liability.

Tax Year and Due Date of T2 Tax Return Filing:

After the formation of a Company, A Corporation may choose any date as its Tax-Year-End date, subject to the condition that its first Tax Year cannot be longer than 53 weeks or 371 days from the date of its incorporation. The Corporations can choose their Tax-Year-End by simply declaring the same in its first Tax Return. However, in general, the Corporations in Canada choose Calendar Year-end as their Fiscal Year end. An existing Company may also change its Tax Year subject to prior approval from the CRA.

Due Dates for Income Tax Deposit and Corporate Tax Return Filing:

1. Tax payment / Deposit of Corporate Income Tax – Though the Corporations have to pay their taxes in monthly/quarterly instalments, if there is any balance then the same has to be paid as follows:
   • Canadian Controlled Private Corporation (CCPC) - Within 3 months from the end of the Tax Year
   • In other cases - Within 2 months from the end of the Tax Year
2. Due date of filing of Income Tax Return – within 6 months from the Tax-Year-End date

Income Tax Return of Non-Resident Corporations

A Non-Resident Corporation may also have to done it’s t2 tax return filing with CRA Canada in certain situations even if such Corporation is exempt from Taxes due to Tax Treaties of Canada with their country of incorporation. For all these t2 related help you can connect with Account tax pros t2 tax return filing consultant team.

If a Non-Resident Corporation has any of the following incomes in Canada, then it has to file its Income Tax Return in Canada:

1. Business Income
2. Capital Gains (Taxable) on the Sale of Canadian Property due to disposal of the same in the relevant Tax year
3. The Non-Resident Corporations want to apply for a refund

There are a few other instances where the Non-Resident corporate tax return filing needed:

1. When a Non-Resident Corporation has filed an NR5 form i.e. Undertaking to file an Income Tax Return or
2. When a Non-Resident Corporation has filed an application for reduction of in the amount of withholding taxes (Form T1288)

Therefore, in the above 2 situations, if the Corporation has received approval from the CRA, then in such situations, every non-resident corporation in Canada must corporate tax return filing. 

Our in-depth and intensive knowledge and expertise in the field of t2 tax return filing, Corporate Tax Advisory and International Taxation is a pivotal strength of our organization. We at Account Tax Pros our t2 tax return filing consultant team assist corporations in filing of corporate tax, Tax advising, Tax planning, International Taxation and CRA Audits.

Transfer Pricing Compliances: We at Account Tax Pros help our client have cross-border/international transactions with their affiliates by assisting in Transfer Pricing compliances including filing of relevant forms and conducting economic study and analysis to provide the transfer pricing documentation to facilitate in demonstrating the Arm’s length transactions.

Our T2 tax return filing consultant team assist our corporate Clients in t2 tax return filing:

1. Preparing and filing their T2 Corporate Income Tax Return
2. Review of eligibility for deductions/credits to reduce the payment of tax.
3. Tax planning, including structuring of business transactions to leverage the maximum efficiencies while ensuring tax compliance.
4. Transfer Pricing Compliances: Transfer Pricing Form and Returns i.e. Form T1134 – Information about Foreign Affiliates and Form T106 – Information return of non-arm’s length transactions with Non-Residents and other reports like CbC (Country by Country) Report etc.
5. Transfer Pricing Filings, Documentation and Dispute Resolution
6. Compliances on withholding of Taxes (Regulation 105 under the Income Tax Act) for the payment to Non-residents towards the work performed in Canada
7. Filing of Tax Returns of Non-Resident Corporations
8. SR&ED study and filings