Navigating the intricacies of CRA compliance with a team of proficient corporate tax accountants by your side ensures your Corporate Tax Filing needs are met with precision.
At TMP, our team is well-versed in the complexities of Canadian Federal and Provincial Tax Laws and Regulations. This deep understanding is critical in delivering high-quality Corporate Tax Services.
We are dedicated to leveraging this knowledge for the benefit of our clients, offering effective tax planning strategies and highlighting available tax incentives under the Canadian Income Tax Act.
All resident corporations, apart from registered charities, need to file a T2 Return for every tax year, even if there are no taxes payable. This includes:
You have 6 months from the date of your corporation’s year end. For example if your year end is December 31st, you have until June 30th the following year.
If you file your return late, a penalty will apply. The penalty is 5% of the unpaid tax that is due on the filing deadline, plus an additional 1% of this unpaid tax for each complete month that the return is late, up to a maximum of 12 months.
You are required to make corporate tax installment payments when your corporate tax liability exceeds $3,000 in any given fiscal year. Typically, corporations base these installments on their current-year tax liability. For example, if your corporation operates from January to December and your tax liability for 2023 was $6,000, after you pay your 2023 tax bill by March 31 2024 you need to make installments of $6,000 for your 2024 corporate taxes. At the end of 2024 if you overpaid you will get the additional funds refunded to you and if you underpaid you will pay the difference.
Every Corporate tax return is unique, best to fill in this questionnaire and our team will send you a list of required documents.
Corporate taxes in Canada are levied on the income earned by corporations. Both federal and provincial/territorial governments impose taxes on business income. The rates will vary based on the type of Corporation, income earned and tax credits the Corporation is entitled to.
You can register your corporation for taxation by filing an RC1 and registering a RC account with the Canada Revenue Agency (CRA). The process may vary depending on the type of corporation.
Yes, there are various tax incentives and credits available, including the Scientific Research and Experimental Development (SR&ED) program and investment tax credits
The small business deduction allows eligible Canadian-controlled private corporations to benefit from a lower tax rate on their first $500,000 of active business income.
Federal corporate taxes are imposed by the Canadian federal government, while provincial/territorial corporate taxes are imposed by the respective provincial or territorial governments. They are separate but complementary.
Businesses in Canada may need to charge and remit GST/HST, depending on their revenue, type of Goods/Service they offer and location of their customers.
A common rule of thumb for allowable business expenses is any expenditure that contributes to the maintenance or growth of your business, as well as expenses that you wouldn’t have otherwise incurred if you were not operating this business
Corporate tax returns in Canada are typically filed using the T2 Corporate Income Tax Return and corresponding schedules that apply to your business with the CRA.
You should maintain records of:
– financial statements and corresponding general ledger
– receipts, invoices
– contracts
– and other documents related to your business activities for at least six years.