CRA reference for Canadian accounting firms
T2 filing and balance-due deadlines
The T2 return and the corporate tax balance have different deadlines. Keep both dates on the client file.
File the T2 within six months
The filing deadline is six months after the end of the corporation’s tax year, which is its fiscal period.
- If the tax year ends on the last day of a month, file by the last day of the sixth month after year-end.
- Otherwise, file by the same day of the sixth month after year-end.
For example, a March 31 year-end has a September 30 filing deadline. A September 23 year-end has a March 23 filing deadline in the following year.
Source: CRA: When to file your corporation income tax return.
Pay the balance before the return is due
Generally, the corporate tax balance is due two months after tax year-end. This general rule excludes Part III and Part XII.6 tax.
For Parts I, VI, VI.1 and XIII.1 tax, the balance may instead be due three months after year-end only when all of these conditions are met:
- The corporation is a Canadian-controlled private corporation (CCPC) throughout the tax year.
- The corporation claimed the small business deduction for the current or previous tax year.
- If not associated with another corporation during the tax year, its previous-year taxable income does not exceed its business limit for that year. If associated, the total taxable incomes of all the associated corporations for their last tax years ending in the previous calendar year do not exceed their total business limits for those years.
Being a CCPC alone is not enough. Verify the deduction, income and association tests before selecting three months. Amalgamations and wind-ups need additional review.
The balance is the tax remaining after payments already made. Instalment obligations are separate; a six-month filing deadline does not extend the payment deadline.
Source: CRA: Due dates for corporate income tax payments (balance-due day and paying on time).
Weekends and public holidays
If a deadline falls on a Saturday, Sunday or public holiday recognized by the CRA, the next business day applies. A return is on time if received or postmarked by that day; a payment must be received by that day. Allow for your payment method’s processing time.
What to verify in NorthForm
NorthForm generates the T2 return at six months and the balance at the two- or three-month rule your firm selects. An unconfirmed balance uses two months and is labelled “assumed 2 months — confirm”; it may appear overdue. NorthForm does not determine whether a client qualifies for three months.
NorthForm does not adjust dates for weekends or holidays. Apply the CRA rule above when verifying the calendar. Corporate tax instalments and separate provincial returns are outside these generated deadlines.
This is a general reference, not tax advice. Verify the client’s circumstances and current CRA guidance before relying on a date.
Keep both dates with the client file
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