CORPORATION INCOME TAX
When is the Tax Year for your corporation?
A corporation's fiscal year is its tax year. Corporations may or may not have year-ends on December 31 for tax purposes. The corporation has the flexibility to choose its fiscal year-end, but it must adhere to the maximum limit of 53 weeks (371 days).
Tax Year for New Corporations:
Newly incorporated corporations in Canada can declare their tax year on their first T2 corporate income tax return after incorporation.
First Tax Year Start:
On the first T2 return after incorporation, the tax year start is set as the date of incorporation. This means that the initial tax year for a newly incorporated corporation begins on the day the corporation was officially incorporated.
Subsequent Tax Years:
For all subsequent T2 returns, the tax year start will be the day after the corporation's tax year-end.
Example
On July 17, 2022, a corporation was set up. It decided to finish its tax year on June 30. From July 17, 2022, through June 30, 2023, will be its first tax year. The second tax year of the entity will run from July 1 to June 30 of 2024.
When is the deadline for corporate tax returns?
Filings for corporation income tax returns are required six months after the taxation year's end.
Example
-Your T2 filing deadline is December 30, 2022, if your company tax year ends on June 30, 2022.
-Your T2 filing deadline is June 30, 2023, if your corporation tax year ends on December 31, 2022.
-Your T2 deadline is July 15, 2023, if your corporation tax year ends on January 15, 2023.
Audits by the Canada Revenue Agency (CRA)
The CRA may audit or review your corporation tax return within a specified time frame.
Ensure that you never have to meet the CRA representative alone.
We can assist you with:
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Income tax audit
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Company tax services
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T2 return reassessments
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Return review and defend
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Attend CRA audit
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Review your tax return for further issues
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Handle all CRA inquiry paperwork
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Help with tax questions and correspondence.
Cloud Accounting and Tax Services
best Tax Treatment for your corporation
Corporations must pay taxes on their profits and do so on time. Even if there is no tax to pay, all Canadian resident corporations must file a corporation income tax (T2) return every year.
At CLaTAX, our CPAs are highly skilled in corporate taxes and are happy to learn about your company. When you hire us, our Corporate Tax Canada experts will work with you to learn about your business, its risks, and whether or not you have to pay corporate income tax.
Our Cloud Tax Canada wings will give you specific tax advice and practical tax solutions that fit the needs of your business. We have substantial cloud accounting and corporation tax knowledge and will help you discover, assess, and manage tax-related risk. It will boost financial performance, decrease chances, and create new opportunities.
Cloud Accounting & Tax Services Inc. is an approved EFILE service provider and can electronically file your corporation income tax. To speed up the processing of your tax return with the Canada Revenue Agency (CRA), we will file your T2 return electronically. If the CRA requires a paper copy, we will send it to them as well. We will provide the support your company needs to navigate the always-evolving Canadian tax landscape and ensure your company conforms with all CRA requirements and is authorized to operate on your company's behalf.
Corporate Income Tax Filing Form
Please complete the form following your company tax year