The Requirements For Corporate Tax Filing In Canada

The Requirements For Corporate Tax Filing In Canada

Don’t be left in the dark when filing your company’s tax return. Find out what you need to know about corporate tax regulations and filing in Canada!

#1 Keep The Records

No matter which corporate structure you choose, one of the most important requirements for your business’s corporate tax filing in Canada is keeping accurate records and invoices. This applies to any time you are dealing with money or assets. You will need proof of sales, expenses, and receipts if audited by the Canada Revenue Agency.

#2 Report Business Income

The second requirement is reporting your business income to the CRA. This can be done in three ways: via a payroll deduction remittance form for employees who are working for you, through a Notice of Assessment that tells you how much items are worth, or through a T1134 form if you file internationally (with operations beyond Canada).

#3 Submit Payroll Taxes

Payroll taxes must be paid quarterly using forms T4 (the employer contribution) and EI (the employee contribution). These forms are reported through the Canadian Revenue Agency’s electronic filing system or by mail using either regular checks or spreadsheets sent directly to the CRA.

#4 List Benefits, Perks, and Group plans

If your business offers rewards such as benefits or party planning, these must be reported on all applicable T-Slips, when applicable. Only certain benefits related to employment are exempt from taxation. Others may be taxable as part of an employee’s salary income, depending on their value and the activities associated with them.

#5 File Tax Returns

Corporations are required to file federal and provincial tax returns each year within 6 months after their fiscal year-end date in order to accurately report their profits, losses, investments made, and carried forward amounts, none of which can be used before they are fully recorded on the corporate tax return itself! 

You can use Form T2 for this purpose; it includes calculating any capital gains realized or transferred during that period as well as claiming other credits owed by government programs like research and development incentives available under SR&ED policies, etc.

#6 Mark the Deadlines

It’s also important to remember deadlines when filing your business’s corporate tax returns in Canada. Corporate tax returns need to be filed annually, with the exception of your first year, where penalties won’t apply until six months after incorporation if filed late. 

Both federal and provincial jurisdictions should agree with this timeline, but check with individual provinces in case there might be some difference between jurisdictions at times.

Takeaway – Should You Use a Chartered Accountant?

Using a professional chartered accountant when filing can reduce stress immensely. Most Canadian businesses use a chartered accountant when dealing with complicated finances.

Business owners often use them even when not strictly needed due to the peace of mind they offer leading up to submission! 

Plus, they’ll also know exactly what information needs to be included in documents and how it should look and feel, so don’t forget about their importance during this critical stage too!