Canada Corporate Tax Services for Incorporated Businesses.
Strategic T2 corporate tax planning for Ontario small business owners
Corporate tax in Canada is complex and constantly changing. Greg Cowan CPA helps incorporated businesses file accurate T2 corporate tax returns, understand their corporate tax bill, and build better corporate tax planning over time.
What is corporate tax?
Corporate tax is the income tax a corporation pays on its profits under Canadian federal and provincial corporate tax rates. Every incorporated business must file a T2 corporate tax return each year, even if there is no tax payable.
Why your corporate tax position matters?
Beyond just paying the corporate tax rate
Knowing the corporate tax rate in Canada or Ontario is not enough. How you pay yourself, how you time expenses, and how your corporation is structured can all change your effective tax rate.
Avoiding CRA issues and surprises
Late or incorrect corporate tax returns increase the risk of interest, penalties, and CRA audits. Working with a corporate tax accountant helps ensure your filings are accurate, complete, and on time.
Keeping corporate and personal tax aligned
Coordinating your T2 corporate tax return with your T1 personal return and overall tax plan helps you avoid double‑taxation, smooth out cash flow and keep more after‑tax income in your hands over time.
Corporate tax services
Incorporated small businesses and professionals that need reliable corporate tax services each year.
Owners who want their corporate tax return to work together with their personal tax and overall tax plan.
Includes
Preparation and filing of your T2 corporate tax return, including schedules, GIFI mapping from your financial statements, and any required elections.
Review of your financial statements to ensure income, deductions, and capital cost allowance are correctly reported for corporate tax in Canada.
Calculation of corporate tax payable or refund, plus estimates of instalment amounts for the next year.
Identification of planning opportunities to improve your corporate tax position in future years (timing of expenses, salary vs dividends, use of losses).
FAQs
How do I register my business with the CRA and get a business number (BN)?
You can register your business and obtain a CRA business number (BN) online through the CRA’s Business Registration Online (BRO) service, or by phone or mail. The BN is your unique identifier for all CRA program accounts, including corporate income tax, GST/HST, and payroll.
What CRA accounts do I need for my corporation (income tax, GST/HST, payroll)?
Every incorporated business needs a corporate income tax account so it can file its T2 corporate tax return. You also register for a GST/HST account once your taxable revenues exceed 30,000 dollars in a 12‑month period, and a payroll account if you have employees and must remit income tax, CPP, and EI.
What are my tax filing obligations as a sole proprietorship vs a corporation?
Sole proprietors and partners report business income on their personal tax return (T1) using Form T2125. Corporations file a separate T2 corporate tax return each year, even if there is no tax payable, and must also keep up with GST/HST and payroll filings where applicable.
When are corporate tax returns due in Canada, and when is payment due?
In most cases, a T2 corporate tax return is due six months after your corporate year‑end, while any corporate tax balance is due two or three months after year‑end depending on the type of corporation. Filing and paying on time helps you avoid CRA interest and late‑filing penalties on corporate taxes.
What is the small business deduction and how does it affect my corporate tax rate in Canada?
The small business deduction reduces the corporate tax rate on up to 500,000 dollars of active business income earned by a Canadian‑controlled private corporation (CCPC). If your corporation qualifies, your effective Canada and Ontario corporate tax rate on that income is significantly lower than the general corporate tax rate.