--- title: "Corporate Tax in Canada: Guides for Incorporated Owners" url: https://www.everstonecpa.com/corporate-tax-hub description: "Corporate tax for Canadian incorporated owners — an annotated hub of T2 deadline, instalment, small business deduction and CRA guides. Use the calculators." type: service-or-info updated: 2026-10-08 summary: "Canadian corporations file a T2 return within six months of each fiscal year end, with the balance payable sooner than that. This hub gathers the corporate tax guides, deadline tools and calculators on this site in reading order, so an incorporated owner can find the filing, instalment or planning answer that applies." faq_count: 6 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Resources](https://www.everstonecpa.com/resources) Corporate tax hub Topic hub # Corporate tax for Canadian *incorporated owners* Every corporate tax guide, deadline tool and calculator on this site, sorted by the question you are actually trying to answer — with a line on each explaining what it covers and when to read it. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** Canadian corporations file a [T2 return](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return.html) within six months of each fiscal year end, with the balance payable sooner than that. This hub gathers the corporate tax guides, deadline tools and calculators on this site in reading order, so an incorporated owner can find the filing, [instalment](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-payments/paying-instalments.html) or planning answer that applies. From the filing deadline up to the planning that precedes it. Corporate tax has the least forgiving calendar in an incorporated business. The return is due six months after the fiscal year end, and the balance sooner. Instalments come due whether or not anyone reminds you. And the planning that changes the number has to happen *before* the year closes, not in the spring. Most owners need only the two or three pieces that match where they are now: a first year end, a first instalment notice, a first CRA letter, or a year closing with cash in the company and no plan. The hub follows roughly that order. ## Start here: what the engagement covers - [Corporate tax services](https://www.everstonecpa.com/tax-services) — what a T2 engagement actually includes, from the return and schedules through to CRA correspondence. Read this first if you are deciding what to hand over and what to keep in-house. - [What your T2 will likely cost](https://www.everstonecpa.com/corporate-tax-estimator), a rough estimate of the corporation’s tax before the books are final. Useful in the last quarter of the year, when there is still time to act on the number. - Can an out-of-province CPA file your T2? — the short answer for owners outside British Columbia who are weighing a remote firm. Read it before you assume you need someone local. - [Tax glossary](https://www.everstonecpa.com/glossary) — SBD, CCA, GIFI, TOSI and the rest of the shorthand accountants use. Keep it open beside the guides below if the vocabulary is new. ## Deadlines, instalments and paying the bill - [The T2 filing deadline](https://www.everstonecpa.com/t2-deadline) — when the return is due, and why the payment date is not the same date. Read this the week you incorporate and again the month your year end passes. - [T2 deadline calculator](https://www.everstonecpa.com/t2-deadline-calculator) — enter your fiscal year end and get the filing and payment dates back. Faster than counting months, and worth doing once per year. - [Late-filing penalties on a T2](https://www.everstonecpa.com/blog/t2-deadline-penalties-canada) — what a missed T2 costs and how the penalty compounds for repeat late filers. Read it if a deadline has already slipped. - [Corporate tax instalments](https://www.everstonecpa.com/blog/corporate-tax-installments-canada) — who has to pay them, how CRA calculates the schedule, and how the interest works. Relevant from your second profitable year onward. - [Instalment calculator](https://www.everstonecpa.com/tax-instalment-calculator) — sizes the quarterly payments so cash is set aside rather than found in a panic. Use it right after the prior year is filed. - [The full CRA deadline calendar](https://www.everstonecpa.com/cra-tax-deadlines) — corporate, personal, GST and payroll dates in one reference. Bookmark it; do not try to memorise it. - [When you cannot pay the balance](https://www.everstonecpa.com/blog/cra-payment-arrangements-cant-pay-tax-canada) — how payment arrangements work and why filing on time still matters when the money is not there. Read it before the deadline, not after. ## The small business rate, and what quietly erodes it - [The small business deduction and passive income](https://www.everstonecpa.com/blog/small-business-deduction-passive-income-canada) — how investment income inside the corporation can grind down the low rate on active income. Read it once retained earnings start getting invested. - [Associated corporations](https://www.everstonecpa.com/blog/associated-corporations-small-business-deduction) — why a second company you also control can mean sharing one small business limit rather than getting two. Read it before you incorporate anything else. - [Personal services business risk](https://www.everstonecpa.com/blog/personal-services-business-psb-risk-canada) — the classification that removes the small business deduction entirely for an incorporated worker with one client. Essential reading for contractors. ## The numbers behind the return - [Capital cost allowance classes](https://www.everstonecpa.com/blog/capital-cost-allowance-cca-classes-canada) — how equipment, vehicles and computers get written off over time instead of all at once. Read it before a large purchase, not after. - [Financial statement preparation](https://www.everstonecpa.com/financial-statement-preparation-canada) — what gets produced alongside the T2 and what it is used for. Read it if a bank or a landlord has asked for statements. - [Compilation engagements (CSRS 4200)](https://www.everstonecpa.com/compilation-engagement-canada) — the standard statement package a lender usually expects from a small corporation, and who is allowed to issue it. ## Provincial rate tables - [British Columbia tax facts](https://www.everstonecpa.com/bc-tax-facts) — BC corporate rates combined with the federal rate, the GST-plus-PST split and the employer health tax bands. Check it before assuming a rate. - [Alberta tax facts](https://www.everstonecpa.com/alberta-tax-facts) — the lowest general rate in Canada, no provincial sales tax, and the separate AT1 return Alberta corporations still have to file. - [Ontario tax facts](https://www.everstonecpa.com/ontario-tax-facts) — Ontario’s corporate rates, the 13% HST and the graduated employer health tax whose rate is set before the exemption is deducted. - [Manitoba tax facts](https://www.everstonecpa.com/manitoba-tax-facts), a provincial small-business rate of nil, and the payroll levy that starts above $2.5 million. ## When CRA gets in touch - [What triggers a CRA look](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) — the patterns that draw attention on a small corporate return. Read it while the year is still open and something can be fixed. - [Review versus audit](https://www.everstonecpa.com/blog/cra-review-audit-small-business) — how to tell which letter you have received and how to answer it. Read it the day the envelope arrives. - [How long to keep records](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records) — the retention rules, and why the receipt you threw out is the one they ask for. Read it before a cleanout. - [Fixing past returns](https://www.everstonecpa.com/blog/voluntary-disclosures-program-canada-fixing-past-returns) — the Voluntary Disclosures Program and what it can and cannot do about an error you found yourself. ## Planning, not just filing - [Corporate tax planning](https://www.everstonecpa.com/tax-planning-services-canada) — the decisions taken before year end that change the return. Read it if your filing has always been a reporting exercise rather than a planning one. - [Eligible vs non-eligible dividends](https://www.everstonecpa.com/blog/eligible-vs-non-eligible-dividends-canada) — why the two are taxed differently in your hands, and which one a small corporation usually pays. - [Salary vs dividends calculator](https://www.everstonecpa.com/salary-vs-dividends-calculator) — models both routes side by side for your own numbers. Run it before the year closes, not with the T1 in April. - [Lifetime capital gains exemption](https://www.everstonecpa.com/blog/lifetime-capital-gains-exemption-canada-small-business) — the shelter available on a qualifying share sale, and the conditions the shares have to meet years in advance. If you are unsure which applies, a conversation is usually quicker than more reading. The hubs on [GST/HST](https://www.everstonecpa.com/gst-hst-hub) and [corporate year end](https://www.everstonecpa.com/year-end-hub) cover the two areas that most often overlap with the T2. About this page **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working fully online with small and midsized businesses in BC, Alberta, Ontario and Manitoba. [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) Common questions ## Corporate tax — common questions **When is a Canadian corporate tax return due?** A T2 is due six months after the corporation’s fiscal year end. Payment is due earlier: generally two months after year end, or three for a Canadian-controlled private corporation that claims the small business deduction and meets the conditions. Filing and paying are separate obligations with separate penalties. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Do I have to file a T2 if the corporation had no activity?** Yes. A resident corporation files a return for every tax year, including years with no revenue and no expenses. A nil return takes very little time to prepare, while a year with nothing filed is treated as a missed filing and can hold up other CRA processing. Dormant does not mean exempt. **What is the difference between the filing deadline and the payment deadline?** The filing deadline, six months after year end, is when the return must reach CRA. The payment deadline comes first. That gap catches new owners: the return is not late, but interest has been running since the payment date. **When does a corporation have to pay tax by instalments?** Instalments are generally required once the corporation’s net tax owing exceeds $3,000 in the current or a previous year. CRA sets a schedule based on prior-year figures, and interest applies to instalments that are late or short. The practical answer is to start setting money aside in the first profitable year, before the notice arrives. **Do I need financial statements to file a T2?** The return carries financial statement information in a standard CRA format, so the statements must exist and be reliable. A formal compilation engagement report is a separate question, usually driven by a lender, landlord or investor rather than CRA. **Can I change my corporation’s fiscal year end?** A fiscal year end is chosen when the first return is filed, and changing it normally needs CRA approval and a sound business reason; convenience is not one. Because it is hard to undo, choose it carefully at the start. T2 corporate tax by city Corporate tax return preparation, city by city: [corporate tax accountant in Abbotsford](https://www.everstonecpa.com/corporate-tax-accountant-abbotsford) [Chilliwack](https://www.everstonecpa.com/corporate-tax-accountant-chilliwack) [Langley](https://www.everstonecpa.com/corporate-tax-accountant-langley) [Mission](https://www.everstonecpa.com/corporate-tax-accountant-mission) [Surrey](https://www.everstonecpa.com/corporate-tax-accountant-surrey) [Maple Ridge](https://www.everstonecpa.com/corporate-tax-accountant-maple-ridge) [Aldergrove](https://www.everstonecpa.com/corporate-tax-accountant-aldergrove) [Vancouver](https://www.everstonecpa.com/corporate-tax-accountant-vancouver) [Victoria](https://www.everstonecpa.com/corporate-tax-accountant-victoria) . ## Corporate tax handled, deadlines included Tell us how your corporation runs and what its year end is, and you will get a straight answer on what needs to happen and when. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) Recent changes ## What changed lately Each one explained in full — how it works, how to calculate it, and whether it is law yet. [The Class 10.1 vehicle ceiling rises to $39,000 for 2026](https://www.everstonecpa.com/tax-update/automobile-deduction-limits-2026) [The capital gains inclusion rate increase was cancelled](https://www.everstonecpa.com/tax-update/capital-gains-inclusion-rate) [The lifetime capital gains exemption stays at $1.25 million](https://www.everstonecpa.com/tax-update/lifetime-capital-gains-exemption) [Manufacturing and processing buildings can be written off in full in year one](https://www.everstonecpa.com/tax-update/immediate-expensing-manufacturing-buildings) [The SR&ED enhanced credit limit doubled to $6 million, and capital costs are back](https://www.everstonecpa.com/tax-update/sred-expenditure-limit) [The Canada Carbon Rebate for Small Businesses is not taxable](https://www.everstonecpa.com/tax-update/carbon-rebate-small-business-non-taxable) [Transfer pricing rules modernised, and the documentation window cut to 30 days](https://www.everstonecpa.com/tax-update/transfer-pricing-changes) [The luxury tax on aircraft and vessels has ended](https://www.everstonecpa.com/tax-update/luxury-tax-aircraft-vessels) [Bare trusts: no T3 for 2025, but the rules return for 2026](https://www.everstonecpa.com/tax-update/bare-trust-reporting) [The $10 million employee ownership trust exemption is now permanent](https://www.everstonecpa.com/tax-update/employee-ownership-trust-exemption) Tools and templates ## Free tools for this Practical templates and calculators you can use straight away — no charge and no sign-up. [T2057: Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation](https://www.everstonecpa.com/forms/t2057) [Accounting for Truckers Owner-Operators](https://www.everstonecpa.com/accountant-for-truckers) [Petty cash and reimbursing yourself what the CRA expects to see](https://www.everstonecpa.com/blog/petty-cash-and-owner-reimbursements-canada) [Federal or provincial incorporation: which one fits your business](https://www.everstonecpa.com/blog/incorporating-federally-vs-provincially-canada) [RRSP vs dividends: why how you pay yourself decides how much you can contribute](https://www.everstonecpa.com/blog/rrsp-vs-dividends-business-owner-canada) [Plain-English tax business guides for Canadian owners](https://www.everstonecpa.com/blog) [The medical expense tax credit: the threshold, what counts, and the alternative for owners](https://www.everstonecpa.com/blog/medical-expense-tax-credit-canada) [Accounting for ecommerce and marketplace sellers](https://www.everstonecpa.com/ecommerce-accounting-hub) [Year-End Document Checklist A free checklist of every document your accountant needs at year-end, grouped by where it comes from.](https://www.everstonecpa.com/year-end-document-checklist) [CRA Audit Document Checklist](https://www.everstonecpa.com/cra-audit-document-checklist) [Shareholder Loan Tracker (Free XLSX) A free spreadsheet tracking money moving between you and your corporation, with a running shareholder loan balance and which way the account is leaning.](https://www.everstonecpa.com/shareholder-loan-tracker) [Corporate Tax Estimator 2026 | Federal + Provincial Estimate federal and provincial corporate tax on your taxable income, split between the small business deduction rate and income above the limit.](https://www.everstonecpa.com/corporate-tax-estimator) ## Every guide on this subject - [Accruing a bonus at year end: the 180-day rule](https://www.everstonecpa.com/blog/accrued-bonus-180-day-rule-canada) - [Year-End Bonus or Dividend? How Owners Decide](https://www.everstonecpa.com/blog/bonus-vs-dividend-year-end-canada) - [Chart of accounts that survives growth, and makes the T2 easier](https://www.everstonecpa.com/blog/chart-of-accounts-small-business-canada) - [The corporate annual return: the registry filing that is not your T2](https://www.everstonecpa.com/blog/corporate-annual-return-bc-vs-federal) - [Choosing your corporate year-end: and changing it later](https://www.everstonecpa.com/blog/corporate-fiscal-year-end-canada-how-to-choose) - [Dairy quota and herd accounting on the T2: a Fraser Valley farm guide](https://www.everstonecpa.com/blog/dairy-quota-accounting-bc) - [A month-end close checklist, and why it makes year end cheap](https://www.everstonecpa.com/blog/month-end-close-checklist-small-business) - [Payroll year-end: a checklist for Canadian employers](https://www.everstonecpa.com/blog/payroll-year-end-checklist-canada) - [Prepaid expenses at year end: what has to be deferred](https://www.everstonecpa.com/blog/prepaid-expenses-year-end-canada) - [Vacation pay rules for employers: accrual, pay-as-you-go and the year-end treatment](https://www.everstonecpa.com/blog/vacation-pay-rules-canada-employers) - [The year-end inventory count: what CRA expects to see](https://www.everstonecpa.com/blog/year-end-inventory-count-canada) - [Year-end tax checklist for incorporated business owners](https://www.everstonecpa.com/blog/year-end-tax-checklist-incorporated-owners) ## Related reading Guides that go deeper on what this page covers. [Amalgamation vs wind-up in Canada](https://www.everstonecpa.com/blog/amalgamation-vs-wind-up-canada) [Recent Canadian tax updates](https://www.everstonecpa.com/tax-updates) [Salary, dividend or management fee](https://www.everstonecpa.com/salary-vs-management-fee) [Ending a corporation well](https://www.everstonecpa.com/closing-or-selling-your-corporation) [Continuance into BC](https://www.everstonecpa.com/moving-corporation-to-bc)[How to file a T2 return](https://www.everstonecpa.com/blog/how-to-file-t2-return-canada)[Reading a notice of assessment](https://www.everstonecpa.com/blog/cra-notice-of-assessment-explained) ### Starting fees Every fee is fixed in writing before any work begins. - **Corporate year-end and T2 return** fixed fee, quoted in writing *This page* - **Monthly bookkeeping, sales tax filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online) --- Source: https://www.everstonecpa.com/corporate-tax-hub Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online