Corporate Income Tax Return

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Securing your corporation’s financial health.

Corporate Income Tax Return (T2) must be filed by every corporation in all over Canada for their corporate tax return Vancouver. This is applicable even if the corporation in question has no tax payable for the year. Corporate pay income tax by filing a Corporate Income Tax Return Form 1120 and by paying the taxes as indicated by this return. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends. A tax credit is provided to individuals who receive a dividend to reflect the tax paid at the corporate level.

Corporate income taxes are paid at the corporate income tax rate, not at the personal tax rate. Types of corporations that must file a T2 include non-profit organizations, tax-exempt organizations and inactive corporations. It is mandatory for all corporations whose profit exceeds $1 million to file a Corporation Income Tax form, and can also be done electronically online. The form has to be filed within six months of the end of each corporation’s fiscal year. Corporations which are exempt from this rule are:

  • Insurance corporations
  • Non-resident corporations
  • Corporations reporting in functional currency
  • corporations  exempt from tax payable under section 149 of the Income Tax Act (refer to Canada.ca for more info)

If a corporation required to file their corporate income taxes electronically does not adhere to the rules, the CRA will charge the corporation with a $1,000 penalty. This is why it is vital for major (and small start-up) corporations to have a personal tax advisor to ensure all strict rules and regulations are followed, and your company is benefiting from all available tax credits.

With corporate tax accounting services, our tax advisors will ensure that you are properly classified – different classifications of corporation have different taxation rules which all, in the end, affect the financial health of your company, how it is run, and how you pay your employees. C corporations, foreign corporations, some non-profits, cooperatives and some public or province-funded corporations are all taxed with corporate tax. There is also a wide range of corporations exempt from corporate tax which, once again, depends on a corporation’s classification.

The professional and friendly accountants at AccNet Accounting Vancouver are committed to helping you to accurately file corporation tax in accordance with the newest corporate income tax return laws and regulations in an efficient and timely manner. We will treat your business as if it were our own and commit to assisting you in the most valuable manner.

 

Services Include: Corporate Income Tax Return

  • Income & expenses report
  • Tax deductions calculation
  • Carryforward of losses for tax reduction
  • Dividends

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