Corporate Tax Return Filing

T2 Tax Return Annual Filing is compulsory for every business in Canada. The Corporate T2 Tax Returns have to be filed in all cases even if the company has not yet started its operations and business after incorporation or even if there is zero tax liability. Our team of corporate tax returns filing experts at Account Tax Pro handle everything from preparing your corporate tax returns documents to filing them accurately on time with the CRA, confirming your business stays compliant while maximising tax savings. 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.

What is Corporate Tax?

Corporate tax refers to the tax that companies pay on their profits. In Canada, both federal and provincial governments collect corporate taxes, and the rates vary by province. For instance, businesses pay the standard federal tax rate of 15%, while provincial rates depend on your business location, such as Ontario's 11.5% rate. Your corporate taxable income is calculated by deducting allowable expenses from your gross income, with the final tax amount being due after applying any available tax credits or deductions.

Managing corporate tax is very important for businesses in Mississauga, Toronto, Brampton and other part of Canada because correct tax filings not only keep you compliant but also ensure you're taking advantage of any tax-saving opportunities, such as small business deductions and credits.

How to File a Corporate Tax Return in Canada

All Canadian corporations must file a T2 Corporate Income Tax Return and T1 Personal Income Tax Return with the Canada Revenue Agency (CRA). Filing a corporate tax return can be complex as it requires various schedules and forms based on the nature of your business, revenue streams, and specific deductions. Here's a breakdown of the steps to file a corporate tax return like:

1. Financial Records: Collecting all financial records, including income statements, balance sheets, and receipts for allowable deductions, 
2. Calculate taxable income: Subtract allowable business expenses, depreciation, and other deductions from gross income to calculate taxable income, 
3. Complete documentation process: Complete the T2 form along with necessary schedules 
4. Submit to CRA.

Filing incorrectly or delayed Corporate tax filing could result in penalties. At Account Tax Pros, we handle the complexities of T2 tax return filing to ensure compliance and accuracy, so you can focus on growing your business.

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:

• Business Income
• Capital Gains (Taxable) on the Sale of Canadian Property due to disposal of the same in the relevant Tax year
• 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:

• When a Non-Resident Corporation has filed an NR5 form i.e. Undertaking to file an Income Tax Return or
• 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 file Corporate Tax Return.