Corporate tax filing in Canada is the process of preparing and submitting a T2 Corporation Income Tax Return (T2 return) to the Canada Revenue Agency (CRA) for each corporate tax year (fiscal period). (Corporation income tax return)
Here are the 6 rules that define what corporate tax filing means in practice:
- You file a T2 return to report corporate income tax information, not only to pay. Completing your corporation income tax (T2) return
- Resident corporations file a T2 every tax year, even when there is no tax payable, unless a CRA exception applies. (Corporation income tax return)
- A non-resident corporation files a T2 when Canada business or property triggers apply (and a treaty claim can still involve filing).
- A corporation’s tax year is its fiscal period and cannot exceed 53 weeks (371 days).
- The T2 filing due date is within 6 months after the tax year-end, using CRA’s month-end vs non-month-end date rules.
- For tax years starting after 2023, most corporations must file the T2 electronically, and CRA states that a $1,000 penalty can apply when e-filing is required, and the corporation does not comply.
Corporate tax filing means submitting a T2 return to the CRA (and it’s not the same as paying)
Corporate tax filing is the submission of the T2 return and required information to CRA for a tax year; payment is a separate deadline.
Filing vs paying: the clean boundary
| Obligation | What it does | Timing rule (CRA) |
| File the T2 return | Reports income, deductions, credits, and tax calculation | File within 6 months after the end of the tax year (CRA — When to file) |
| Pay any balance owing | Pays the remaining tax after instalments | Balance-due day is generally 2 months after year-end (CRA — Balance-due day) |
A helpful mental model: filing tells CRA what the tax position is; paying settles the amount owing.
Who must file a corporate tax return (T2) in Canada
A corporation must file a T2 return when CRA’s filing rules for that corporation type apply, and resident corporations are the default “must file” group. (Corporation income tax return)
Resident corporations: file every tax year, even with no tax payable
A resident corporation files a T2 every tax year, including years with no tax payable, unless the corporation is one of CRA’s listed exceptions.
This “must file” group includes corporations that are:
- active
- inactive
- tax-exempt
- non-profit organizations
CRA lists 3 resident-corporation exceptions that do not have to file a T2:
- tax-exempt Crown corporations
- Hutterite colonies
- registered charities
Non-resident corporations: filing triggers can apply (and a treaty claim doesn’t automatically remove filing)
A non-resident corporation files a T2 in the situations CRA describes for non-residents, such as when Canadian business or property rules apply.
If a non-resident corporation claims an income tax treaty exemption, the treaty claim still needs to be handled the way CRA specifies for that situation.
What you file: T2 type, schedules, and GIFI financial statement reporting
A corporate tax filing package includes a T2 return (or T2 Short Return for eligible corporations) plus schedules and financial statement reporting in the format CRA expects. (Canada Revenue Agency — Corporation income tax return)
T2 vs T2 Short Return: what changes
CRA describes two return types:
- T2 Corporation Income Tax Return: 9 pages, and any corporation can use it.
- T2 Short Return: 2 pages plus one schedule (for eligible corporations).
GIFI: How CRA standardizes financial statement reporting
CRA defines the General Index of Financial Information (GIFI) as a standard list of codes used to prepare financial statements for T2 reporting. CRA also states that all corporations (except insurance corporations) should prepare their financial statement information using GIFI codes and file it with their T2 returns. (General Index of Financial Information (GIFI))
Here’s the “what goes with what” view:
| Item | What it is | Concrete CRA detail |
| T2 return | Standard corporate income tax return | 9 pages |
| T2 Short Return | Simplified return for eligible corporations | 2 pages + one schedule (Corporation income tax return) |
| GIFI | Financial statement reporting using codes | “Standard list of codes” filed with the T2 (and insurance corporations are excluded from the “all corporations should” statement) (CRA — GIFI) |
How corporate tax filing works today: mandatory e-filing for most post-2023-start tax years
For tax years starting after 2023, CRA states that corporations must file the T2 return electronically, with listed exceptions. CRA also states that a $1,000 penalty can apply when electronic filing is required, and the corporation does not comply. (Completing your corporation income tax (T2) return)
CRA’s e-filing exceptions include:
- insurance corporations
- non-resident corporations
- corporations reporting in functional currency
- corporations exempt from tax payable under section 149 of the Income Tax Act.
In plain language: electronic filing is the default, and the exceptions are the narrow cases where CRA’s rule is different.
When corporate tax filing happens: tax year rules and the 6-month deadline
A corporation’s tax year is its fiscal period, and CRA’s T2 deadline is calculated from the tax year-end. (When to file your corporation income tax return)
CRA states two key constraints:
- The fiscal period cannot exceed 53 weeks (371 days).
- The T2 return must be filed within 6 months after the end of the tax year.
Filing due date examples (CRA date logic)
| Tax year-end | CRA rule | T2 filing due date |
| March 31 | Last day of the 6th month after year-end | September 30 |
| August 31 | Last day of the 6th month after year-end | February 28 |
| September 23 | Same numerical day 6 months later | March 23 |
What happens if you don’t file: failure-to-file penalties can apply and can escalate
Not filing on time can trigger a failure-to-file penalty that is calculated from unpaid tax and escalates in repeat or demand-to-file conditions. (Justice Laws — Income Tax Act, s.162)
| Situation | Penalty formula | Maximum |
| Base late filing | 5% of unpaid tax + 1% per complete month late | 12 months |
| Repeat / demand-to-file late filing | 10% of unpaid tax + 2% per complete month late | 20 months |
| Non-resident corporation (when applicable) | Greater of the standard penalty and the greater of $100 or $25/day | 100 days for the daily component |
What happens after you file: CRA assesses the return and issues a Notice of Assessment
After CRA receives a T2 return, CRA processes it and assesses it. CRA states that it will send a notice of assessment after assessing the return. ( After you file your corporation income tax return)
This is the practical “after filing” loop:
- You file the T2 return.
- CRA assesses the return.
- You compare CRA’s assessed result to your records and keep support for the numbers reported.
Corporate tax filing in Ontario: CRA administration, with Schedule 5 for multi-jurisdiction corporations
Ontario corporate tax reporting usually runs through the CRA-administered T2 system because CRA administers provincial and territorial corporation taxes except for Quebec and Alberta. (Provincial and territorial corporation tax)
Schedule 5 becomes important when the corporation has a permanent establishment in more than one province or territory, because Schedule 5 allocates taxable income across those jurisdictions. (If you have to complete Schedule 5)
Record-keeping: CRA’s baseline rule is 6 years
CRA states you must generally keep records and supporting documents for 6 years from the end of the last tax year they relate to, and you need CRA permission to destroy records early. (Where to keep your records, for how long, and how to request permission to destroy them early)
FAQs
Who is required to file corporate taxes in Canada?
Resident corporations file a T2 every tax year, even when there is no tax payable, unless the corporation is a tax-exempt Crown corporation, a Hutterite colony, or a registered charity. (Corporation income tax return)
What is a corporate tax return in Canada?
A corporate tax return in Canada is the T2 Corporation Income Tax Return filed with the CRA for a corporation’s tax year (fiscal period). (CRA — Corporation income tax return)
Who can file a corporate tax return?
A corporation files a T2 return, and CRA states that most corporations must file it electronically for tax years starting after 2023 unless an exception applies. (Completing your corporation income tax (T2) return)
What happens if I don’t file corporate taxes?
A late T2 can trigger a failure-to-file penalty that’s calculated from unpaid tax and can escalate in repeat or demand-to-file conditions. (Justice Laws — Income Tax Act, s.162)
Conclusion
Corporate tax filing in Canada is built around one object: the T2 return filed with CRA for a corporation’s tax year. Start by confirming your tax year-end, then map the 6-month filing deadline and the post-2023 e-filing rule to that date. (CRA — When to file your corporation income tax return)
