Table of Contents
Introduction
In addition to collecting income tax, the CRA collects corporate taxes. If you’re a Canadian corporation, you must file federal and provincial corporate taxes annually. You must understand the process of filing corporate taxes in Canada so you only end up paying what you should.
Taxes for corporations must be filed with the Canada Revenue Agency (CRA).
Corporate taxes must be filed with the Canada Revenue Agency (CRA). Corporations must file corporate taxes on a T2 corporation income tax return, typically done annually.
Corporations must file an annual tax return and a T2 corporation income tax return.
Corporations are required to file an annual tax return, known as a T2 corporation income tax return. This document calculates your company’s taxable income and federal and provincial taxes. The deadline for filing these forms is April 30th every year (or June 15th if you file on an extension).
The first step is to get a notice of assessment from the CRA.
The first step is to get a notice of assessment from the CRA. This document will tell you how much tax you owe for the previous year, and your accountant can use it as they prepare your corporate taxes. The second step is to pay any outstanding amounts owed by filing a T2 Corporation Income Tax Return with Revenue Canada (or in French: Revenu Quebec).
The second step is calculating the taxable income amount required.
The second step is calculating the taxable income amount required. The first step was determining whether or not you had a business and whether it was a corporation or an unincorporated business (sole proprietorship).
The second step involves calculating your taxable income from all sources. You may think: “But wait! I already did this when I filed my tax return!” This is true; however, there are some important differences between corporate and personal taxes when determining what type of income is taxable by CRA.
The third step is determining the total federal taxes payable on your company income.
The third step is determining the total federal taxes payable on your company income. To do this, you need to calculate the following:
- The amount of federal income tax payable. This will equal your company’s taxable income (the amount before deducting any allowable business expenses) multiplied by its applicable corporate tax rate.
- The amount of provincial or territorial income tax payable. This will also be equal to your company’s taxable income multiplied by its applicable provincial or territorial corporate tax rate(s) but note that there are some exceptions where only one province has jurisdiction over a particular type of business activity, and so no additional calculation is necessary here; however, if more than one province does have jurisdiction over your business activity then all applicable rates must be included in your calculations!
From there, you will calculate your provincial taxes as well.
Once you have calculated your federal taxes, you will need to calculate your provincial taxes. Each province has tax rates and regulations, so this process varies depending on where you live.
Suppose you live in Ontario or Quebec, for example. In that case, self-employed individuals are required by law to report their income annually by filing an annual return with Revenue Quebec (or Ontario). You can use their online calculators as a tool for determining how much money should be withheld from each paycheck throughout the year for these purposes; however, there is no option for paying quarterly instalments like there is with other types of income such as employment earnings or investments–you’ll need to pay all of it at once at year-end instead!
If you live elsewhere, you’ll need to contact the CRA (Canada Revenue Agency) directly to determine how much funds should be withheld from your paycheques and remitted to them regularly.
Finally, you can determine whether you need to make any monthly instalment payments and how much those will be.
Finally, you can determine whether you need to make any monthly instalment payments and how much those will be. The CRA will send a notice telling you when your first payment is due and how much it should be. After that, they’ll send out another notice telling you when the next payments are due with an updated amount for each quarter.
Each year there are two different sets of dates on which corporate taxes are due: one in June and another in December (or January). If your corporation’s fiscal year ends on December 31st, then its first instalment should be paid on or before June 15th; if it ends on June 30th, then its first instalment would be due between July 1st – 15th; etcetera until December 31st/January 1st comes around again and another set of deadlines arrives!
It’s important to understand the steps involved in filing corporate taxes in Canada so that you don’t end up paying more than you should
It’s important to understand the steps involved in filing corporate taxes in Canada so you only end up paying what you should. Here are some things to keep in mind:
- Taxes are necessary, but they shouldn’t be your only concern when running your business. It would help if you also considered how much money is coming into the company and going out of it each year, as well as any expenses that may incur during this period (such as advertising).
- Even if your business isn’t making much profit or has no employees yet, it still needs to file its annual corporate tax return with Revenue Canada every year by March 1st of each following year after its incorporation date (e.g., if Company X were incorporated on January 1st, 2022 then they would have until March 1st, 2023). This includes even small businesses!
You’ll need to pay taxes if your company makes profits in a given year. This is called “income tax,” calculated based on how much money was earned during that period. But don’t worry, the government has made things easier for small businesses by offering taxation deductions (such as the ones below) that can reduce their taxable income.
Conclusion
We hope that this article has given you some insight into how corporate taxes are filed in Canada. It’s important to understand the steps involved in filing corporate taxes in Canada so you only end up paying what you should if you have any questions about your own business or would like help preparing your tax return.
