T2 Corporate Income Tax Return: Filing Requirements, Deadlines and How to File

The T2 is the income tax return a corporation files with the Canada Revenue Agency (CRA). It is separate from the owner’s personal (T1) return, and it has its own deadlines. This guide covers who has to file, when the return and the tax are due, what is filed with the return, how to file, and what happens afterwards.

It is general information based on CRA guidance, not advice for a specific corporation. The CRA’s T2 Corporation – Income Tax Guide (T4012) has the full rules.

What the T2 return is

The T2 is the federal corporation income tax return. For most provinces it is also the provincial return. The CRA says the T2 serves as the federal, provincial and territorial return unless the corporation is located in Quebec or Alberta, which have their own separate provincial corporate returns.

For an Ontario corporation, Ontario corporate tax is calculated and reported on the same T2, using Schedule 500 (Ontario Corporation Tax Calculation). No separate Ontario corporate income tax return is filed. Current rates are covered in our guide to Ontario corporate tax rates.

Who has to file a T2 return

According to the CRA, all resident corporations have to file a T2 return every tax year, even if there is no tax payable. The only exceptions are tax-exempt Crown corporations, Hutterite colonies and registered charities.

That includes a corporation that earned little or no income in the year. If you have recently incorporated a business in Ontario, the corporation has a filing obligation from its first tax year.

T2 filing deadline

A corporation must file its T2 return within six months of the end of its tax year. The CRA applies the rule this way:

• If the tax year ends on the last day of a month, the return is due by the last day of the sixth month after the year-end.
• If the tax year ends on any other day, the return is due by the same day of the sixth month after the year-end.
• If the due date falls on a Saturday, Sunday or public holiday recognized by the CRA, the return is on time if the CRA receives it, or it is postmarked, on or before the next business day.

Tax year-end	T2 filing deadline
December 31	June 30
March 31	September 30
August 31	February 28
September 23	March 23

The deadlines in the table are before any weekend or holiday adjustment. For all the corporate, payroll and personal dates in one place, see our Canadian tax deadlines guide.

When the tax has to be paid: the balance-due day

Filing and paying are separate deadlines, and the payment deadline comes first. Any balance of tax owing is generally due two months after the end of the tax year. This date is called the balance-due day.

The balance-due day is three months after the year-end if all of the following apply:

• the corporation is a Canadian-controlled private corporation (CCPC) throughout the tax year;
• it claims the small business deduction for the current or previous tax year; and
• its taxable income for the previous tax year does not exceed its business limit for that year. For associated corporations, the test is applied to the group’s combined taxable income and business limits.

Interest, compounded daily, is charged on any tax still unpaid after the balance-due day, even if the return itself is filed on time.

A year-end timeline for your corporation

Deadlines for a corporation are counted from its own tax year-end, not December 31. This timeline shows the main dates in order, so you can plan backwards from year-end. Your corporation’s instalment and GST/HST dates may add to it.

When	What happens	Official source
Tax year-end	Books close; start gathering year-end records	—
By the last day of February after the calendar year	T4 information return due, if the corporation had employees. Due the next business day if it falls on a weekend or holiday.	CRA – When to file information returns
2 months after year-end (3 months for CCPCs that meet CRA conditions)	Balance-due day for tax owing	CRA – Balance-due day
6 months after year-end	T2 filing deadline. For a month-end year-end, the last day of the sixth month. Next business day if on a weekend or holiday.	CRA – When to file your corporation income tax return
Within 6 months of fiscal year-end	Ontario annual return through the Ontario Business Registry	Ontario Business Registry – annual return filing

Tax instalments

Many corporations pay their tax during the year in instalments rather than in one amount after year-end. Instalments are generally paid monthly. Some small CCPCs that meet the CRA’s conditions can pay quarterly instead.

A corporation generally does not have to pay instalments if:

• its tax payable is $3,000 or less for either the current or the previous tax year; or
• it is in its first tax year after incorporation.

In both cases the tax is still due in full by the balance-due day. Late or insufficient instalments are charged interest. If that instalment interest is more than $1,000, the CRA may also charge an instalment penalty.

What is filed with the T2

The T2 is a main return plus schedules. Which schedules apply depends on the corporation’s circumstances. Common ones include:

• Financial statement information in GIFI format. The General Index of Financial Information (GIFI) is a standard list of codes for financial statement items. The CRA says all corporations except insurance corporations should prepare their financial statement information using GIFI and file it with the T2. This includes Schedule 100 (balance sheet), Schedule 125 (income statement) and Schedule 141 (additional information).
• Schedule 1, Net Income (Loss) for Income Tax Purposes, which reconciles accounting income to income for tax purposes.
• Schedule 8, Capital Cost Allowance, where the corporation claims CCA on depreciable property.
• Schedule 50, Shareholder Information.
• Schedule 500, Ontario Corporation Tax Calculation, for corporations with Ontario tax to calculate.

The return relies on the corporation’s year-end books, so accurate records make it much easier to prepare. Our year-end bookkeeping checklist covers the reconciliations and records to finish first.

Records to gather before your T2 is prepared

• Bank and credit card statements for every month up to year-end
• Sales records and year-end receivables list
• Purchase invoices and year-end payables list
• Loan and lease statements showing the year-end balances
• Invoices for assets bought or sold during the year (supports Schedule 8, capital cost allowance)
• Shareholder names and ownership changes (supports Schedule 50)
• Payroll summaries and the T4 Summary, if the corporation had employees
• GST/HST returns filed for the year, if registered
• Instalment payment confirmations
• Last year’s T2 and notice of assessment
• Details of any amounts paid to or received from shareholders

Free downloadable template. The Corporate T2 Year-End Records Checklist (PDF) is a printable list of the records to gather after year-end. The Corporate T2 Year-End Records Tracker (XLSX) is a spreadsheet for tracking which year-end records have been gathered. Download the Corporate T2 Year-End Records Checklist (PDF) · Download the Corporate T2 Year-End Records Tracker (XLSX). No email address required.

This template helps organize records. It does not determine eligibility, deductions, tax owing, or filing requirements.

How to file a T2 return

For tax years that start after 2023, corporations must file their T2 electronically, using tax preparation software. The CRA lists these exceptions:

• insurance corporations;
• non-resident corporations;
• corporations that report in functional currency; and
• corporations exempt from tax under section 149 of the Income Tax Act.

A corporation that is required to file electronically and doesn’t can be charged a $1,000 penalty.

The T2 Short Return. Some corporations can use a shorter version of the T2: two pages plus Schedule 1. It is available to a CCPC that has nil net income or a loss for the year, or to a corporation exempt from tax under section 149. The corporation must also meet other conditions in T4012, including:

• having a permanent establishment in only one province or territory;
• claiming no refundable tax credits other than a refund of instalments paid;
• receiving and paying no taxable dividends; and
• reporting in Canadian currency.

It is still a T2 return with the same deadline.

Penalties for filing late

If a corporation files its T2 late and owes tax, the CRA’s failure-to-file penalty is 5% of the unpaid tax due on the filing deadline, plus 1% of that unpaid tax for each complete month the return is late, up to 12 months.

A larger penalty applies to repeat cases. It applies if the CRA issued a demand to file and had already assessed a failure-to-file penalty in any of the three previous tax years. That penalty is 10% of the unpaid tax plus 2% for each complete month late, up to 20 months.

A corporation that is owed a refund still has a deadline: to claim it, the return must be filed within three years of the end of the tax year.

After you file: notice of assessment and reassessment

After processing the return, the CRA issues a notice of assessment. Corporations that receive mail online get it in My Business Account; otherwise it is mailed. The CRA recommends comparing the notice with your copy of the return as soon as you receive it.

The CRA can later reassess the return. For a corporation that was a CCPC at the end of the tax year, the normal reassessment period is generally three years from the date of the original notice of assessment. For other corporations it is four years. The period can be extended in certain situations.

Records to keep

The CRA says to keep paper and electronic records for six years from the end of the last tax year they relate to. If a return is filed late, the six years run from the date it was filed.

Keep records at your place of business or residence in Canada unless the CRA gives permission otherwise. Some records, such as share registers and records of property acquisitions and disposals, need to be kept longer. (Source: CRA – Where to keep your records, for how long and how to request permission to destroy them early) Electronic records must stay in an electronically readable format. (Source: CRA – Acceptable format, imaging paper documents and backing up electronic files)

Common questions about the T2 return

Does a corporation with no income or no tax owing still have to file a T2?
Yes. The CRA requires resident corporations to file a T2 every tax year even if no tax is payable. The only exceptions are tax-exempt Crown corporations, Hutterite colonies and registered charities.

Is the T2 deadline the same as the personal tax deadline?
No. The T2 is due six months after the corporation’s own tax year-end, which may not be December 31. The owner’s personal T1 return has separate deadlines.

If the T2 is filed on time, is there still interest?
There can be. Tax owing is due on the balance-due day, two or three months after year-end, which is earlier than the filing deadline. Interest runs on any balance unpaid after that day.

Does an Ontario corporation file a separate Ontario tax return?
No. Ontario corporate tax is calculated on Schedule 500 and reported on the T2. Quebec and Alberta are the provinces that require separate provincial corporate returns.

Is the Ontario annual return filed with the T2?
Ontario says corporations file an annual return through the Ontario Business Registry each year, within six months of their fiscal year-end. (Source: Ontario Business Registry – annual return filing)

Getting help with a T2 return

Toronto Tax & Accounting Solutions is based in Scarborough and prepares T2 returns for corporations in Toronto and the GTA. If you’d like help with a return, see our corporate tax services in Toronto. If your books need attention first, see our bookkeeping and accounting services.

Do not email banking credentials or passwords. For SINs, employee tax information, and full tax slips, contact us first for instructions on the safest way to send documents.

Sources

• Canada Revenue Agency: Corporation income tax return
• Canada Revenue Agency: When to file your corporation income tax return
• Canada Revenue Agency: Completing your corporation income tax (T2) return
• Canada Revenue Agency: General Index of Financial Information (GIFI)
• Canada Revenue Agency: T2 Corporation Income Tax Return
• Canada Revenue Agency: T2 Corporation – Income Tax Guide (T4012): Before you start
• Canada Revenue Agency: Due dates for payments (instalments and balance-due day)
• Canada Revenue Agency: Who has to pay in instalments
• Canada Revenue Agency: Avoiding penalties
• Canada Revenue Agency: After you file your corporation income tax return
• Canada Revenue Agency: When the CRA can reassess your T2 return
• Canada Revenue Agency: Ontario provincial corporation tax
• Canada Revenue Agency: Balance-due day
• Canada Revenue Agency: When to file information returns
• Government of Ontario: Ontario Business Registry – annual return filing
• Canada Revenue Agency: Where to keep your records, for how long and how to request permission to destroy them early
• Canada Revenue Agency: Acceptable format, imaging paper documents and backing up electronic files

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