T2 corporate tax returns for Ontario corporations
Every corporation resident in Canada must file a T2 return every year, even if it had no income or activity. Quartax prepares T2 returns for incorporated small businesses and professionals in Mississauga and across Ontario, from the year-end financial statements through to the Ontario schedules filed with your return.
What is included
- Year-end review of your bookkeeping, with adjusting entries
- Financial statements and the GIFI schedules your T2 needs
- T2 corporate income tax return with Ontario schedules, filed electronically
- Small business deduction claims for eligible Canadian-controlled private corporations (CCPCs)
- Owner pay planning: salary, dividends and the T4 or T5 slips that go with them
- Tax instalment calculations so the corporation is not charged instalment interest
- Shareholder loan review to avoid unexpected personal tax
Corporate tax deadlines
| Item | Deadline |
|---|---|
| T2 return | 6 months after your fiscal year end |
| Balance owing | 2 months after year end, or 3 months for many CCPCs that claim the small business deduction |
| T5 slips for dividends paid | Last day of February |
For example, a corporation with a December 31 year end must file its T2 by June 30, but any balance owing is due by the end of February or March.
Small business tax rates in Ontario
An Ontario CCPC pays a combined federal and Ontario rate of 12.2% on its first $500,000 of active business income, because of the small business deduction. Income above that limit, and most investment income, is taxed at higher rates. Planning salary, dividends and money kept in the company can make a real difference to what you and your corporation pay overall.
Behind on corporate filings?
Missed a year or two? Late T2 returns bring penalties when tax is owing, and the CRA can assess your corporation without your input. We catch up your bookkeeping, file outstanding returns and keep you current from then on.
Just incorporated?
New corporations need their tax accounts, books and first fiscal year set up correctly. See our incorporation services.