Corporate Tax Accountant
In Manotick & Ottawa

Navigating corporate taxes in Canada can feel overwhelming, but it doesn’t have to be. Here’s the breakdown:

For most businesses, the federal corporate tax rate starts at 38%, but thanks to a federal tax abatement, it gets knocked down to 28%. Then, with the general tax reduction, the final net tax rate comes to 15%. That is what larger corporations typically pay at the federal level.

Now, if you run a Canadian-Controlled Private Corporation (CCPC), which includes a lot of small and medium-sized businesses, you might be eligible for the Small Business Deduction (SBD). This means your first $500,000 of active business income gets taxed at just 9% federally. That is a huge advantage for growing businesses.

But corporate taxes do not stop there. Each province and territory adds its own tax on top of the federal rate, so your total tax bill depends on where your business operates. For example, in Ontario, the combined corporate tax rate is 26.5% for general corporations and just 12.2% for CCPCs that qualify for the small business rate.

Understanding how these numbers impact your business can make a real difference in your bottom line. If you are looking for ways to optimize your tax strategy and keep more of your hard-earned money, let’s chat. We would love to help you find the best approach for your business.

Resident corporations

All corporations must submit a T2 return for each tax year, even if there is no tax owed. This includes inactive corporations, tax-exempt corporations, and non-profit organizations. The only exceptions to this law are Hutterite colonies, tax-exempt Crown companies, and businesses that were registered charities throughout the year.

Non-resident corporations

A non-resident corporation must submit a T2 return if they engaged in commercial activity in Canada, realized a taxable capital gain, or sold a taxable property in Canada at any time during the year. It’s crucial to remember that this responsibility still applies even if the corporation asserts that any earnings or gains realized are exempt from Canadian income tax as a result of a tax treaty. Therefore, the corporation is not needed to submit a T2 return in such circumstances if the disposition complies with all the requirements.

Contact Beck Tax and Accounting today to schedule a consultation and take the first step towards stress-free corporate tax filing.

The Schedules and the General Index of Financial Information (GIFI) are also included with the T2 form. Schedules provide the CRA with additional details regarding your corporation’s tax return and related filings. They include:

• Information schedules: general information and those relating to transactions
• Calculation schedules: net income, taxable income, deductions, taxes, and credits

GIFI is the standard list of codes used to prepare financial statements.

Get personalized attention and support for your business’s unique tax needs with Beck Tax and Accounting. Work with us.

After each tax year’s end, you have six months to file your return. An organization’s fiscal year corresponds to its tax year.

You have to file the return by the last day of the sixth month after the end of the tax year when the corporation’s tax year ends on the last day of a month.

You should file the return by the same day of the sixth month after the end of the tax year when the last day of the tax year is not the last day of a month.

Need help with complex corporate tax filings? Beck Tax and Accounting have the expertise you need. Contact us today.

When filing your corporate tax, you will need to gather the following information:

• Company name and address
• The Business Number issued by the Canada Revenue Agency
• Statements of income and balance sheets filed with the General Index of Financial Information
• The company’s main activities and sources of income (investment income, etc.)
• Whether the company performs its activities or owns property abroad
• Whether you conduct activities in other Canadian provinces
• Whether the company received or paid dividends
• Any acquisition or disposal of fixed assets

You must also have all company shareholders and authorized corporate signatory shareholders’ first and last names, addresses, and countries of residence if you are a major corporation with shareholders. Also, you need to provide information if the company is affiliated with other businesses or if its stockholders own shares in other corporations.

Stop stressing over taxes and start optimizing your business’s financial health with Beck Tax and Accounting’s corporate tax services. Reach out to us today.