T2 corporate tax returns
Every corporation files a T2 return each year, even in a year with no income. We prepare the year-end financial statements, file the T2 electronically with the Ontario schedules, and make sure the numbers tie back to your books, your HST returns and your T4 and T5 slips.
- Year-end financial statements
- T2 return with all federal and Ontario schedules
- T5 slips for dividends paid to shareholders
- Instalment schedules, so there are no surprises
- Shareholder loan reviews, to avoid unexpected personal income
- Capital cost allowance on vehicles, equipment and buildings
| What | When it’s due |
|---|---|
| T2 corporate tax return | Six months after your year-end |
| Balance of tax owing | Two months after year-end, or three months for many CCPCs claiming the small business deduction |
| Tax instalments | Monthly or quarterly, when tax is more than $3,000 in the current or previous year |
| T5 slips for dividends | Last day of February |
| Payroll remittances | 15th of the following month for regular remitters |
Tax planning for owners
Your T2 records what happened. Planning changes what happens next: salary or dividends, staying within the small business rate, and paying family members within the rules. See tax planning for business owners, or try our salary vs dividends calculator.
Holding companies and investment accounts
We keep the books for holding companies, including corporate brokerage accounts: dividends, interest, realized gains and foreign income. We also plan how money moves between the operating company, the holding company and the family, and make sure intercompany dividends and loans are documented properly.
Common questions
When is my corporate tax return due?
A T2 corporate return is due six months after the corporation’s year-end. Any tax owing is due sooner: two months after year-end, or three months for many Canadian-controlled private corporations that claim the small business deduction. Filing on time but paying late still costs interest.
Should I pay myself a salary or dividends?
Salary is deductible to the company, creates RRSP room and builds CPP. Dividends are simpler and avoid payroll, but create no RRSP room. Many owners use a mix. The right answer depends on your income needs, retirement plans and what the company earns, so we model it each year.
Do I need a holding company?
Not always. A holding company can protect retained earnings from the operating company’s creditors, hold investments and make a future sale easier, but it adds a second set of statements and returns. It usually makes sense once the operating company has more cash than it needs to run.
What is the small business deduction?
It’s the lower tax rate on the first $500,000 of active business income earned by a Canadian-controlled private corporation. In Ontario the combined federal and provincial rate on that income has been 11.2% since July 1, 2026 (it was 12.2%; tax years that straddle that date get a blended rate). The $500,000 is shared among associated companies, and it shrinks when the group earned more than $50,000 of passive investment income in the previous year.