GENERAL CORPORATE TAX INFORMATION
Every corporation is required to file a corporate tax return (T2).
Due Date to file the corporate tax return is 6 months after your corporate year end:
- Example: Corporate Year-end is October 31st ; tax return is due April 30th of the following year
Due date to pay any outstanding taxes owing to the Canada Revenue Agency:
- 2 months after your year-end if you are not a Canadian Controlled Private Corporation
- 3 months if you are a Canadian Controlled Private Corporation
Meals and Entertainment expenses:
- Only 50% of the expense is deductible for tax purposes
- Up to 6 events if they include all employees can be considered 100% deductible
- Christmas parties, summer barbeques, etc.
- Only 50% of the GST/HST can be claimed as an Input Tax Credit on your GST/HST return
Employment Insurance (EI):
- If you own more than 40% of your company, and you are an employee of the company, you are likely EI exempt.
- You can opt to contribute into the EI program, but once you opt in, you can only reverse this once. (you can’t flip-flop back and forth)
Registering for GST/HST:
- If you are selling a taxable service or produce, and if you invoice more than $30,000 in any 12 month period, you need to register for GST/HST.
- This will allow you to charge GST/HST as well as claim a refund back for any GST/HST that you paid on anything for your business.
Tax Tip for meeting tax deadlines:
- Put the deadlines into your Calendar and set automatic reminders to ensure that you don’t forget them!