Filing a corporate tax return is a must and mandatory for every incorporated business in Canada. It reports your company's income, expenses, deductions and taxes payable. The standard form is the T2 Corporation Income Tax Return, which is required to be filed every year, even if your company has no income or taxes payable.

For most provinces, the T2 covers both federal and provincial obligations. However, if your business operates in Alberta or Quebec, you must also submit a separate provincial return. If you file it correctly and on time, penalties can be avoided and it ensures that your business complies with the rules. In addition, the corporate tax return establishes your financial credibility with banks, investors and government agencies.

Step-by-Step Guide: How to File a Corporate Tax Return in Canada

  1. Know your deadlines – A corporate tax return is due six months after your fiscal year-end. Any taxes owed must be paid within two or three months of year-end.
  2. Organize financial documents – Gather income statements, balance sheets, receipts, payroll slips and previous CRA assessments.
  3. Use the correct form – The T2 form is required for most corporations. Smaller, simpler companies may qualify to use the shorter T2 version.
  4. Include required schedules – Depending on your business activities, you may need to add schedules for capital cost allowance, loss carryforwards or provincial tax allocation.
  5. File provincially if necessary – Alberta and Quebec corporations must file additional provincial returns (AT1 in Alberta, CO-17 in Quebec).
  6. E-file your return – Since 2023, most corporations must submit electronically using CRA-certified software. Paper returns are allowed only in rare cases.
  7. Pay instalments and final balance – Most corporations must pay taxes in instalments throughout the year. Any balance is due at the payment deadline.

What Are the Common Top Mistakes Companies Make When Filing a Corporate Tax Return?

  • Missing deadlines – Late filing results in penalties starting at 5% of unpaid taxes plus 1% for each additional month late.
  • Not paying instalments – Failing to make required instalment payments can lead to interest charges, even if you file on time.
  • Overlooking provincial obligations – Businesses in Alberta and Quebec often forget they need to file an additional provincial return.
  • Incomplete schedules – Missing forms for deductions, credits, or multi-province allocations can lead to reassessments or lost savings.
  • Skipping e-filing – CRA now requires most corporations to e-file. Paper submissions may be rejected unless your business qualifies for an exemption.

Hiring a corporate tax accountant Calgary helps take the stress out of filing. An experienced accountant will:

  • File your T2 return along with any Alberta AT1 obligations.
  • Track both filing and payment deadlines to avoid penalties.
  • Identify deductions, credits, and strategies to reduce tax payable.
  • Ensure instalments are calculated correctly to prevent interest.
  • Keep your business records CRA-ready in case of a review.

For Calgary businesses, a local accountant adds value by understanding Alberta-specific rules while also managing federal compliance.

Corporate Tax Return Services in Canada: Saving Money and Reducing Risk

Using a professional tax return service Canada helps businesses stay compliant and save money. Trained experts not only file returns but also reduce the risk of mistakes, missed credits or late submissions.

Corporate tax services also monitor changes to tax law, such as updates in instalment rules or mandatory e-filing requirements. This ensures your business stays up to date without having to track complex regulations on your own. In many cases, the savings from avoided penalties and optimized tax strategies outweigh the cost of hiring a professional service.

Why Brown Boys Accounting Is the Right Choice for Your Corporate Tax Return

At Brown Boys Accounting, we help Canadian businesses simplify the entire tax filing process. We handle everything—from preparing your T2 return and any provincial filings to managing instalments and advising on tax strategies.

Our team focuses on accuracy and timeliness, making sure your return is filed before deadlines and your payments are properly scheduled. We also work with clients to identify opportunities for credits and deductions that improve cash flow. For Calgary businesses, we provide expert support with both federal and Alberta filings.

Choosing Brown Boys Accounting means choosing peace of mind. We ensure that your corporate tax return is filed correctly, penalties are avoided, and your business remains financially secure.

FAQs about corporate tax return 

  1. When is a corporate tax return due in Canada?

    Corporate tax returns are due six months after the fiscal year-end, but payment of any balance owing is due two or three months after year-end. Missing these dates leads to penalties and interest.
  2. Do I have to file if my company had no income?

    Yes. All resident corporations must file a T2 return every year, even with no income or taxes owing. This keeps your business compliant and in good standing with the CRA.
  3. What penalties apply for late filing?

    The CRA charges a penalty of 5% of unpaid tax plus 1% for each month late, up to 12 months. Repeat offenders face higher penalties, and interest accrues daily until payment is made.
  4. Is electronic filing mandatory?

    Yes, for most corporations. Since 2023, the CRA requires nearly all corporate returns to be filed electronically using certified software. Paper filing is limited to certain exemptions like non-resident corporations.
  5. Why should I hire a corporate tax accountant in Calgary?

    A tax accountant ensures compliance, saves time and maximizes deductions. They also provide local expertise for Alberta-specific returns, helping businesses avoid costly mistakes and unnecessary stress.