Corporate Tax Return Frequently Asked Questions
+How do I register a corporation?
You can register a corporation quickly and easily online using services like Ownr.co or by visiting a provincial Registry Office.
+Who needs to file a corporate tax return in Canada?
All incorporated businesses must file a T2 Corporate Tax Return each year, even if there is no income, or is inactive.
+What documents are needed for a corporate tax return?
Bank statements, invoices, receipts, payroll records, and any agreements for loans, leases, or assets purchased/sold during the year. These documents are requested on a regular basis as part of the bookkeeping process.
+What is the deadline for filing a corporate tax return?
Corporate tax returns are due six months after the end of the corporation's fiscal year. However, any balance owing must be paid within three months of the fiscal year-end.
+What happens if a corporation files late?
CRA charges penalties starting at 5% of unpaid tax plus 1% per month late, up to 12 months. Interest is also added.
+Can Tax Calgary help with corporate tax filing and tax-efficient decisions?
Yes, we prepare and file corporate returns and advise on tax efficiency, dividend vs. salary, and GST/HST compliance.
+Can I carry losses from my corporation to other years?
Yes, non-capital losses can generally be carried back 3 years or carried forward up to 20 years to offset taxable income.
+What expenses can a corporation deduct?
Common deductions include salaries, rent, utilities, business insurance, vehicle expenses, professional fees, advertising, and depreciation (CCA) of assets. Specific expenses related to your business are discussed during the bookkeeping process.