Every corporation operating in Canada — active or not — is generally required to file a T2 corporate income tax return each year. Unlike personal tax, the T2 is tied to your corporation's fiscal year-end, which you choose when you incorporate.
When is a T2 return due
A T2 return is due six months after your corporation's fiscal year-end. However, any balance owing is typically due sooner — often two or three months after year-end, depending on your circumstances — so it's important not to wait until the filing deadline to start preparing.
What a T2 filing involves
Filing a T2 return typically requires:
- Year-end financial statements (income statement and balance sheet)
- A reconciliation between accounting income and taxable income
- Supporting schedules for items like capital cost allowance
- Review of any GST/HST and payroll filings for consistency
Why year-end preparation matters
Clean, current bookkeeping throughout the year makes year-end financial statement preparation faster and more accurate — and gives you a clearer picture for tax planning conversations, such as salary versus dividend decisions, before your year-end arrives rather than after.
This article is general educational information and not personalized tax advice. See our Corporate Tax page for more detail, or book a consultation to discuss your corporation's specific filing requirements.