T2 Corporate Income Tax Return Filing Deadlines and Penalties
If you own a corporation in Canada, it is important to be aware of your T2 corporate income tax return filing deadlines to ensure that your company’s taxes are filed on time and to avoid any penalties or interest charges.
The due date for corporate tax returns in Canada is six months after the end of the fiscal year-end. For example, if your company’s fiscal year-end is December 31st, the due date for the corporate tax return is June 30th of the following year.
It is important to note that if your company’s tax return is filed late, penalties and interest charges will be applied. The Canada Revenue Agency (CRA) will charge a late-filing penalty of 5% of the balance owing, plus 1% of the balance owing for each full month that the return is late, to a maximum of 12 months. Additionally, interest will be charged on any outstanding balance owing (at rates of up to 8% as of the first quarter of 2023).
To avoid these penalties and interest charges, it is important to ensure that your company’s tax return is filed on time. If you are unable to file on time due to unforeseen events, you may be eligible under certain circumstances to apply for a filing extension by contacting the CRA (not a guarantee though).
If you have any questions or concerns about your company’s tax return or the filing deadlines, please do not hesitate to contact us. We would be happy to discuss further with you.