Canadian Corporate income tax return: T2

Corporate tax planning and implementing tax optimization processes are the backbone of effective business tax tactics. The RKB approach begins with a robust inquiry, understanding of your business practices, and rigorous tax planning and evaluation of potential strategies. Proceeding this, our team continues with constant monitoring of the tactic that optimizes your tax liability.

Domestic Corporations Every company, whether incorporated federally, provincially in Canada or a corporation resident in Canada, must file a corporate income tax return after its fiscal year-end.

  • You can choose a tax year-end that is no longer than 53 weeks from the date of your incorporation in the 1st year of the incorporation.
  • You need to file your T2 no later than six months after the end of each tax year.
  • No extension available as compared to IRS
  • You need to prepare your income statements and a balance sheet and report on GIFI.
  • You need to provide ownership information.
  • More…


corporate tax Canada

T2 – Corporate tax planning

We include in our checklist which we think are generally important, and we will review them specifically:

  • The small business deduction that you can avail for your active business income
  • Passive income business limit
  • Shareholders compensation
  • Eligible and ineligible dividends
  • Shareholders loan
  • Valuation on inventory
  • Transfer pricing
  • The requirement to register for GST/HST
  • The requirement to register your GST/HST with Revenue Quebec
  • Payroll registration
  • Home office expenses and mileage
  • Income splitting
  • Expenses that you have paid from your personal account
  • Your business startup costs
  • Transfer of your personal assets into the business
  • Bookkeeping and record retention

Every corporation, either registered federally or in Ontario, needs to file an Annual report every year, which is different from your T2 Corporate Income Tax return. A corporation registered in Quebec files an Annual declaration/report every year with the QBCA.

Non-resident Corporations

cross-border tax

Canada’s domestic tax laws require a non-resident to file and pay tax on any income they earn from carrying on a business in Canada.

A non-Canadian corporation that was not resident in Canada at any time in the taxation year is subject to tax under section 219 of Canada’s Income-tax Act.

If the principal business of a corporation throughout the world is the transportation of persons or goods or communications, it is exempt from tax under section 219 regardless of the nature of its Canadian business. However, in the case of a corporation mining iron ore in Canada, its operation of that nature in Canada must be its principal business throughout the world if it is to qualify for exemption under section 219.

non-resident and foreign corporate taxation in Canada

Cross-border tax

Specific items:

  • Schedule 97, Additional Information on Non-Resident Corporation in Canada
  • Schedule 20, Part XIV – Additional Tax on Non-Resident Corporations
  • Certificates of compliance on Dispositions of taxable Canadian property
  • Withholding tax on Services rendered in Canada
  • Withholding tax Part XIII
  • Corporation income tax registration


If a non-resident corporation was involved in a business in Canada or sold a taxable Canadian property in the tax year, the non-resident corporation must file a T2 return with the Canada Revenue Agency (CRA). The non-resident corporation must file a T2 even if the profit/gain realized is exempt from Canadian tax under a tax treaty.

Our Services includes:

  • Discussion and Tax planning
  • Detailed review Income and all allowable expenses
  • Shareholders compensation planning
  • Preparation of financial statements
  • Advising and minimizing overall tax liabilities, including your personal taxes
  • Reviewing various types of deductions, exemptions that you can avail to minimize your tax liability
  • Follow up for the assessment of your tax return by CRA.
  • Year-round support


tax questions

We are Authorized CRA e-file providers and can file your corporate tax returns electronically for faster processing. We file corporate income taxes for our clients in Ontario, BC, and Quebec.

We provide services for corporate tax filing in Woodbridge, Vaughan. We also serve North York, Toronto, Richmond Hill, Scarborough, North York, Mississauga, Oakville, Hamilton, Brampton, all over Ontario and Quebec. Our virtual and cloud-based tax filing services are available all over Canada.

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