Corporate Tax (T2) in Ontario: Deadlines, Deductions & the Small Business Deduction
Every incorporated business in Canada files a T2 corporate tax return. Here’s what you need to know to file on time and pay as little as legally possible.
The deadlines that matter
Your T2 is due within six months of your fiscal year-end. But any tax owing is generally due earlier — two to three months after year-end for most small corporations. Miss the filing deadline and the CRA charges penalties plus interest.
The small business deduction
Canadian-controlled private corporations (CCPCs) get a reduced tax rate on the first slice of active business income thanks to the small business deduction. Applied correctly, it’s one of the biggest tax advantages of incorporating — but it interacts with passive income and associated-company rules, so it’s worth getting right.
Deductions worth claiming
Vehicle, home office (where applicable), capital cost allowance on equipment, salaries, and legitimate business expenses all reduce taxable income. The key is clean books and knowing what qualifies.
See our corporate tax service →
FAQ
When is my T2 due? Six months after fiscal year-end to file; balance owing generally two to three months after year-end.
What happens if I file late? Penalties plus interest. We can still file late or amended returns and limit the damage.
Is the small business deduction automatic? It has to be applied correctly and can be reduced by passive income — not something to guess at.
Can I file my own T2? You can, but the SBD, CCA and schedules trip most owners up; a CPA usually saves more than the fee.
