What documents do I need to file a T2 corporate tax return?

You'll need your year-end financial statements (income statement and balance sheet), the prior year's T2 return, details of any asset purchases or disposals, shareholder loan account details, dividend records, and any CRA correspondence received during the year. If we handle your bookkeeping, we'll already have most of this.

Does my corporation need to file a T2 even if it had no income?

Yes. Every corporation resident in Canada must file a T2 return every year, even if it had no income, no activity, or operated at a loss. Failure to file results in late-filing penalties regardless of whether tax is owed.

Corporate Tax Filing · Canada

Corporate Tax Filing Canada —
Accurate T2 Returns

Q: When is the T2 corporate tax return due in Canada?

The T2 corporate income tax return is due 6 months after your corporation's fiscal year-end. For example, if your year-end is December 31, your T2 is due June 30. However, any balance owing is due within 3 months of year-end (or 2 months for most CCPCs). Filing and payment deadlines are separate.

Q: What is the small business deduction (SBD) in Canada?

The small business deduction reduces the federal corporate tax rate to 9% on the first $500,000 of active business income earned by a Canadian Controlled Private Corporation (CCPC). This is significantly lower than the general corporate rate of 15%. Most owner-operated small businesses qualify.

Q: What is the corporate tax rate in Canada for small businesses?

A CCPC that qualifies for the small business deduction pays a combined federal-provincial rate of roughly 9%–12.2% on the first $500,000 of active business income (varies by province). Income above the $500,000 threshold, or passive investment income, is taxed at higher rates.

T2 corporate income tax returns prepared and filed for incorporated Canadian businesses. We maximize the small business deduction and keep you fully compliant with CRA — remotely, across Canada.

Get a Quote What's Included

T2 return preparation & e-filing Small business deduction (CCPC) CCA optimization CRA correspondence handled

What's Included

Everything your T2 return requires

A complete corporate tax return service — from year-end financials to e-filing with CRA.

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T2 Corporate Return

Full T2 preparation including all required schedules — GIFI, Schedule 1, Schedule 50, Schedule 100, and provincial equivalents.

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Small Business Deduction

We ensure qualifying CCPCs claim the small business deduction on the first $500,000 of active business income — reducing your federal rate to 9%.

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Capital Cost Allowance (CCA)

Strategic CCA planning to optimize depreciation deductions on business assets across all CCA classes, maximizing your tax position.

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Loss Carryforward & Carryback

If your corporation had a loss year, we apply non-capital losses strategically — either carrying forward or requesting a carryback refund.

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Shareholder Loan Reconciliation

Shareholder loan accounts reviewed and reconciled to avoid unexpected personal income inclusion under Section 15 of the Income Tax Act.

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CRA Correspondence

We respond to all CRA review letters, audit queries, and assessment notices related to your corporate return on your behalf.

Who We Help

Corporate tax for every incorporated business

From newly incorporated sole-owner businesses to established SMEs — we handle the T2 so you can focus on operations.

Owner-Operated CCPCs

Small incorporated businesses where the owner is also the operator — we maximize the small business deduction and structure dividends efficiently.

Holding Companies

Holding corporations with investment income, inter-company dividends, or real estate holdings — filed with proper passive income schedules.

Newly Incorporated

Just incorporated? We set up your corporate tax account, establish your fiscal year-end, and file your first T2 correctly from day one.

Professional Corporations

Incorporated professionals (consultants, IT contractors, creatives) using a corporation to split income or defer taxes through retained earnings.

Multi-Year Catch-Up

Behind on T2 filings? We prepare and file multiple years of outstanding returns and negotiate with CRA to minimize penalties where possible.

Combined Bookkeeping + Tax

Clients who use our monthly bookkeeping get a seamless handoff — year-end financials are already clean and T2-ready when filing time comes.

Corporate Tax Rates

Know your tax rate — we do the math

Canadian corporate tax rates depend on whether you qualify for the small business deduction and which province you operate in.

CCPC — Active Business Income
(first $500K)

~12%

Federal 9% + provincial. Small business deduction applies. Exact rate varies by province (ON ≈ 12.2%, AB ≈ 11%, BC ≈ 11%).

General Corporate Rate
(above $500K threshold)

~26%

Federal 15% + provincial. Applies to active income exceeding the SBD limit, or corporations that don't qualify as CCPCs.

Passive Investment Income
(within corporation)

~50%

Investment income (interest, rent, non-eligible dividends) earned inside a CCPC is taxed at ~50%, with a portion refundable on dividend payment.

Rates shown are approximate combined federal+provincial. Actual rates vary. We calculate your precise liability when preparing your return.

Common Questions

Corporate tax FAQ

Key questions about T2 returns and corporate tax in Canada.

When is the T2 corporate tax return due in Canada?

The T2 is due 6 months after your corporation's fiscal year-end. For a December 31 year-end, that's June 30. However, the balance owing is due 3 months after year-end for most CCPCs (March 31 for December year-ends). Filing late triggers a 5% penalty plus 1% per month — even on a nil return.

What is the small business deduction (SBD) for Canadian corporations?

The SBD reduces the federal corporate tax rate from 15% to 9% on the first $500,000 of active business income earned by a Canadian Controlled Private Corporation (CCPC). Combined with provincial small business rates, most owner-operated CCPCs pay between 9%–12.2% on income under the threshold — one of the lowest business tax rates in the G7.

What is the corporate tax rate in Canada for small businesses?

A CCPC qualifying for the SBD pays approximately 9%–12.2% combined (federal + provincial) on the first $500,000 of active business income. Ontario is 12.2%, Alberta is 11%, BC is 11%, and so on. Income above $500,000 is taxed at the general rate (~26%). We'll apply the exact rate for your province when filing.

What documents do I need to file a T2?

You'll need your year-end financial statements (income statement and balance sheet), the prior year's T2 return and Notice of Assessment, asset purchase/disposal details, shareholder loan account reconciliation, dividend records, and any CRA correspondence. If SWS handles your bookkeeping, we already have most of this — the T2 is a seamless continuation.

Does my corporation need to file a T2 even with no income?

Yes. Every Canadian resident corporation must file a T2 annually — regardless of activity, income, or whether it operated at a loss. A nil return still needs to be filed. Failure to file results in late-filing penalties even when no tax is owed. Dormant corporations must also file until formally dissolved.

Corporate Tax Filing Canada —
Accurate T2 Returns

Everything your T2 return requires

T2 Corporate Return

Small Business Deduction

Capital Cost Allowance (CCA)

Loss Carryforward & Carryback

Shareholder Loan Reconciliation

CRA Correspondence

Corporate tax for every incorporated business

Owner-Operated CCPCs

Holding Companies

Newly Incorporated

Professional Corporations

Multi-Year Catch-Up

Combined Bookkeeping + Tax

Know your tax rate — we do the math

Corporate tax FAQ

More ways we can help

Ready to file your T2?

Corporate Tax Filing Canada —Accurate T2 Returns

Everything your T2 return requires

T2 Corporate Return

Small Business Deduction

Capital Cost Allowance (CCA)

Loss Carryforward & Carryback

Shareholder Loan Reconciliation

CRA Correspondence

Corporate tax for every incorporated business

Owner-Operated CCPCs

Holding Companies

Newly Incorporated

Professional Corporations

Multi-Year Catch-Up

Combined Bookkeeping + Tax

Know your tax rate — we do the math

Corporate tax FAQ

More ways we can help

Personal Tax Filing

Monthly Bookkeeping

GST/HST Filing

Ready to file your T2?

Corporate Tax Filing Canada —
Accurate T2 Returns