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Every Canadian corporation has to file a T2 return within six months of its tax year end, even one that earned nothing and owes nothing. The tax itself is usually due sooner, two months after year end, or three months for some small private companies. Those two dates trip up more new owners than anything else about the annual filing requirements for corporations.
Which dates apply to a corporation’s year?
The CRA counts from your fiscal year end, not from the calendar year. If your year ends on the last day of a month, the return is due on the last day of the sixth month after it. A March 31 year end means September 30. An August 31 year end means February 28. If the date lands on a weekend or holiday, the next business day counts.
| Item | When it’s due |
|---|---|
| T2 return | Six months after the tax year ends |
| Balance of tax (most corporations) | Two months after the tax year ends |
| Balance of tax (qualifying CCPCs) | Three months after the tax year ends |
| Refund claim | Return filed within three years of year end |
| Electronic filing | Required for tax years starting after 2023 |
Who gets the three-month payment window?
Only a Canadian-controlled private corporation that claimed the small business deduction in the current or previous year, and whose taxable income stayed within the business limit (shared with associated companies). Miss any one of those conditions and you’re on the two-month rule.
That matters for cash planning. A corporation with a December 31 year end that qualifies has until March 31 to pay. One that doesn’t has until the end of February. The return for either is due June 30.
What happens if you file late?
The CRA charges 5% of the unpaid tax that was due on the deadline, plus 1% of it for each full month the return is late, up to 12 months. Say $10,000 is unpaid and you file six months late. That’s $500 plus $600, so $1,100, before interest. If the CRA demanded a return and charged a late-filing penalty in any of the previous three years, the rate doubles to 10% plus 2% a month.
Filing on paper is its own trap. The CRA says a corporation required to file electronically and that doesn’t will get a $1,000 penalty. Nearly every corporation is now in that group, with a few exceptions such as insurers and non-residents.
Notice what the penalty is based on. If you owe nothing, the late-filing penalty is zero, but late filing still makes the file messier and can cost you refunds and credits.
What does the annual return cover besides the T2?
The T2 comes with schedules. Which ones you need depends on what happened: dividends, shareholder loans, related companies, capital cost claims, and so on. Your software or accountant will pick them, but you can see the drivers yourself by asking four questions. Did you pay yourself or anyone dividends? Do you owe the company money, or does it owe you? Do you share the small business limit with another company? Did you buy equipment?
Corporate filing with the CRA is separate from any yearly filing with the registry where you incorporated, whether federal or provincial. Those have their own dates and fees. We haven’t confirmed any of them here, so check your registry before you assume they line up with the T2.
GST/HST returns and payroll remittances run on their own calendars too. They don’t move just because your T2 is done.
What does the tax on $150,000 look like?
Take an Alberta CCPC with $150,000 of active business income and no associated companies. The corporate tax calculator shows $13,500 federal and $3,000 provincial, so $16,500 in all, an 11% combined rate, leaving $133,500 in the company.
Ontario cut its small business rate on 1 July 2026, so a calendar 2026 year there gets a blended rate that the calculator estimates and the province doesn’t publish. Treat any Ontario figure for this year as approximate. Then decide how much to pay out. The dividend tax calculator shows the personal side, and the self-employed tax calculator is the comparison if you weren’t incorporated.
Mistakes that cost money
Paying late because you thought the payment date was the filing date is the big one. Interest runs from the balance-due day, and filing the return doesn’t stop it. Some owners also forget that an inactive corporation still files. The CRA says all resident corporations file a T2, including non-profit, tax-exempt and inactive ones, with few exceptions.
Keep your records six years from the end of the last tax year they relate to. A dissolved corporation has to keep them for two years after dissolution.
Where the numbers come from
Dates, penalties and record rules come from the CRA’s T2 pages, its balance-due day page and its penalty guidance. Federal and provincial rates come from CRA corporation tax rate pages as of September 2026. The 2026 dates for your specific year end depend on your own fiscal calendar.
Frequently asked questions
When is the T2 due for a December 31 year end?
June 30 of the next year, six months after the year end. The tax balance is due two months after year end, or three months for qualifying CCPCs.
Do I file a T2 if the corporation was inactive?
Yes. The CRA says all resident corporations file, including inactive ones, with few exceptions.
Can I file the T2 on paper?
For tax years starting after 2023 most corporations must file electronically. The CRA charges a $1,000 penalty for not doing so.
What is the late-filing penalty?
5% of the unpaid tax due on the deadline, plus 1% per full month late up to 12 months. It is higher for repeat offenders.
How long must I keep corporate records?
Six years from the end of the last tax year they relate to, and two years after a corporation dissolves.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.