Corporate Tax Services Toronto

Corporate tax returns are mandatory for all incorporated businesses operating in Canada. Whether you’re a small business corporation, professional corporation, or larger enterprise, filing accurate and timely corporate tax returns is essential for maintaining compliance with the Canada Revenue Agency (CRA) regulations.

In Canada, corporations must file a T2 Corporation Income Tax Return annually, reporting all income, claiming eligible deductions, and calculating tax payable based on applicable rates. Our Toronto-based accounting firm specializes in comprehensive corporate tax services tailored to small businesses and professional corporations.

Our Corporate Tax Return Filing Services

  • T2 Corporate Tax Return Preparation and Filing – Complete preparation and electronic filing of your company’s T2 returns
  • Basic Corporate Tax Planning Strategies – Identifying opportunities for tax minimization and timing of income recognition
  • Remuneration Strategies – Consulting on Dividend vs Salary to minimize taxes at both corporate and personal levels
  • Financial Statements Preparation – Creating accurate financial statements required for corporate tax filing and for compilation engagement report (formerly, Notice to Reader)
  • GIFI (General Index of Financial Information) Preparation – Properly coding financial information according to CRA requirements
  • Corporate Tax Installment Planning – Structuring your tax installments to optimize cash flow
  • Scientific Research & Experimental Development (SR&ED) Claims – Assistance with claiming valuable R&D tax credits based on your Consultant’s prepared schedules
  • Corporate Tax Compliance Reviews – Ensuring all necessary schedules and forms are properly completed
  • Information Returns – Preparation of T4, T4A, T5, T5018, and other information returns
  • GST/HST Return – Preparation and filing of GST/HST return
  • CRA Audit Support – Professional representation during corporate tax audits and reviews

Corporate Tax Filing Timeline and Rates

T2 Filing and Payment Deadlines

  • Corporate tax returns must be filed within six months after the end of the corporation’s tax year
  • For example, a corporation with a December 31 year-end must file by June 30 of the following year
  • Balance of taxes owing must be paid within two months after the end of the tax year (three months for eligible Canadian-controlled private corporations)

Corporate Tax Rates (2025)

  • Federal corporate tax rate: 15% on general income, 9% on small business income up to $500,000 (for eligible small businesses)
  • Ontario provincial corporate tax rate: 11.5% general rate, 3.2% small business rate
  • Combined federal/Ontario corporate tax rate: 26.5% general rate, 12.2% small business rate

Penalties for Non-Compliance

  • Late filing penalty: 5% of unpaid tax plus 1% per complete month overdue (up to 12 months)
  • Repeated late filing: Penalties double to 10% plus 2% per month for the second offense within 3 years
  • Interest charges: Compound daily interest on unpaid taxes and penalties
  • Director’s liability: Corporate directors may become personally liable for certain unpaid taxes

Why Choose MAQ CPA for Your Corporate Tax Return Filing?

✅Expertise in Canadian Tax Law – Our team stays updated with the latest tax regulations.

✅Proactive Tax Planning – Year-end compliance and year-round strategies to minimize tax burden.

✅Personalized Service – Tailored advice based on your industry, with a single point of contact familiar with your business and its unique needs.

✅CRA Representation – Expertise in handling CRA reviews, audits, and inqueries.

✅Transparent Pricing – Transparent pricing with no surprise billing for standard corporate tax services

Frequently Asked Questions

1. What information do I need to provide for my corporate tax return?

You’ll need to provide your company’s financial statements, the previous year’s tax return, corporate minute book details, capital asset listings, shareholder information, and details of any significant transactions from the tax year.

2. Can I reduce my corporate tax burden legally?

Yes, there are several legal strategies to minimize corporate taxes, including timing of income recognition, maximizing eligible deductions, income splitting with shareholders, utilizing tax credits, and optimizing the integration between corporate and personal taxes.

3. What’s the difference between an accounting profit and taxable income?

Accounting profit follows Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), while taxable income follows the Income Tax Act. Certain expenses may be treated differently for accounting purposes versus tax purposes, resulting in different figures.

4. How long should I keep my corporate tax records?

The CRA requires businesses to maintain books and records for a minimum of six years from the end of the last tax year they relate to. However, we recommend keeping certain permanent records indefinitely.

5. What happens if the CRA audits my corporation?

During an audit, the CRA will examine your corporation’s financial records, tax filings, and supporting documentation. As your tax professionals, we can represent you throughout the process, respond to CRA inquiries, provide requested documentation, and work to resolve any discrepancies.

Contact Us Today

Don’t leave your corporate tax compliance to chance. Our team can help ensure your corporation meets all its tax obligations while minimizing your tax burden within the framework of Canadian tax law.

Email: info@maqcpa.ca
Phone: (416) 901-4126

For more information on corporate tax requirements, visit the Canada Revenue Agency’s corporate tax information page: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations.html