The T2 Corporate Tax Return: Filing and Payment Deadlines in Canada
who files, the six-month filing clock and the earlier balance-due date
A Canadian corporation's T2 return is due six months after its fiscal year-end. The tax payment runs on a separate clock: most Canadian-controlled private corporations claiming the small business deduction must pay within three months of year-end, other corporations within two. Every resident corporation must file, even with no tax payable.
When is the T2 filing deadline?
Six months after the end of the corporation's tax year. Where the year-end is the last day of a month, the T2 is due the last day of the sixth following month; otherwise it is due the same day of the sixth month.
A September 30 year-end therefore files by March 31. A June 15 year-end files by December 15.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| T2 corporation income tax return | Every resident corporation, every tax year, even with no tax payable. | File within six months after the end of the corporation's tax year. Where the year-end is the last day of a month, the return is due the last day of the sixth following month; otherwise it is due the same day of the sixth month. | The balance of tax is due earlier than the return: generally two months after year-end, or three months for eligible Canadian-controlled private corporations claiming the small business deduction. Filing on time is not paying on time. | 5% of the unpaid tax plus 1% per complete month late, to a maximum of 12 months. Repeated failure raises it to 10% plus 2% per month for up to 20 months. |
When is the corporate tax balance due?
Earlier than the return. The general rule is two months after year-end; eligible Canadian-controlled private corporations claiming the small business deduction get three, subject to income conditions.
This is the trap: an owner who hears 'six months' assumes the money is due then too. Interest starts running from the payment date.
The third clock: corporate instalments
Corporations with total tax payable over $3,000 in the current or previous year pay monthly instalments, due the last day of each month. Eligible small CCPCs with a clean compliance history may pay quarterly instead.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| Corporate tax instalments | Corporations whose total tax payable exceeds $3,000 in the current or previous year. | Monthly instalments are due the last day of each month. Eligible small CCPCs — claiming the small business deduction, with a perfect compliance history and within the taxable-income and taxable-capital limits — may instead pay quarterly, on the last day of each quarter of the tax year. | Not applicable | Instalment interest applies, with an additional penalty where instalment interest exceeds $1,000. |
Why T2 season never ends
A corporation chooses its own fiscal year-end on its first T2, and the fiscal period may not exceed 53 weeks. A firm with 80 corporate clients therefore has year-ends in every month of the calendar, which means a filing deadline and a payment deadline are always approaching.
| Filing | Applies to | Filing deadline | Payment | If it is late |
|---|---|---|---|---|
| Fiscal year-end conventions | All businesses. | A corporation chooses its fiscal year-end on its first T2. Any date may be chosen and the fiscal period may not exceed 53 weeks; changing the year-end afterwards requires CRA approval. Unincorporated businesses generally must use a December 31 year-end unless they elect the alternative method. | Financial statements accompany the T2 as GIFI schedules and are due with the return, six months after year-end. | No penalty applies |
What does filing a T2 late cost?
5% of the unpaid tax plus 1% per complete month late, to a maximum of 12 months. Repeated failure — where a penalty applied in one of the three prior years and the CRA issued a demand — rises to 10% plus 2% per month for up to 20 months, with compound daily interest on top.
Frequently asked questions
When is the T2 return due?
Six months after the corporation's fiscal year-end. Where the year-end is the last day of a month, the return is due the last day of the sixth following month. A December 31 year-end files by June 30; a September 30 year-end files by March 31.
Is the T2 payment deadline the same as the filing deadline?
No. The balance of tax is generally due two months after year-end, or three months for eligible Canadian-controlled private corporations claiming the small business deduction. The return itself is due at six months. Filing on time does not mean paying on time.
Does a corporation with no income still file a T2?
Yes. Every resident corporation must file a T2 for every tax year, even where there is no tax payable. Failing to file a nil return still exposes the corporation to demand-to-file consequences and complicates its compliance history.
Can a corporation change its fiscal year-end?
A corporation chooses its year-end on its first T2 and needs CRA approval to change it afterwards. The fiscal period may not exceed 53 weeks. Choosing deliberately at incorporation — rather than defaulting to December 31 — is one of the cheapest planning decisions available.
What is the penalty for filing a T2 late?
5% of the unpaid tax plus 1% for each complete month the return is late, to a maximum of 12 months. Where a late-filing penalty applied in one of the three previous tax years and the CRA demanded a return, the penalty doubles to 10% plus 2% per month for up to 20 months.
Related guides
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By province
Turn these dates into tickets.
SpidNums generates the work from each client's cadence and year-end, then ranks it by proximity.