Corporate Tax Due Dates: T2 Filing and Payment Deadlines
The T2 is due 6 months after fiscal year end, but the balance is due sooner. Know the exact dates for your corporation type and the penalties for missing them.
I spent 5 years as a tax auditor. Now that knowledge works for you, not against you.
Ahmed Jama, CPA
T2 Filing Deadline
The T2 corporate income tax return is due 6 months after your corporation's fiscal year end. For a December 31 fiscal year end, the filing deadline is June 30. Filing is mandatory even if your corporation had no income or was inactive during the year.
- 6-month rule: Filing deadline is always 6 months after fiscal year end, regardless of corporation type.
- December 31 year end: Filing due June 30 of the following year.
- No income required: Every corporation must file, even dormant or zero-income entities.
Balance Due Dates: CCPC vs Non-CCPC
The tax balance owing is due earlier than the filing deadline. For Canadian-controlled private corporations (CCPCs), the balance is due 3 months after fiscal year end. For non-CCPCs, the balance is due 2 months after fiscal year end. This is a critical distinction that affects cash flow planning.
| Corporation Type | Filing Due | Balance Due |
|---|---|---|
| CCPC (small business) | 6 months after year end | 3 months after year end |
| Non-CCPC | 6 months after year end | 2 months after year end |
| New corporation (first year) | 6 months after year end | 2 months after year end |
Installment Payments
If your corporation's tax owing exceeds $3,000 in the current year or either of the two prior years, CRA requires installment payments. Monthly installments are due by the last day of each month. Quarterly installments (available to eligible CCPCs) are due by the last day of each quarter.
- $3,000 threshold: Installments required if tax exceeds $3,000 in current or prior two years.
- Monthly installments: Due by the last day of each month. This is the default for most corporations.
- Quarterly option: Available to CCPCs with prior year tax under $3,000 and a compliant filing history.
GST/HST Deadlines for Corporations
Corporations registered for GST/HST must file returns based on their assigned frequency: monthly (over $6M revenue), quarterly (most businesses), or annual (under $1.5M). The filing deadline is one month after the period end for monthly/quarterly filers, and three months for annual filers.
- Monthly/quarterly: Due one month after the reporting period end.
- Annual filers: Due three months after fiscal year end.
- Combined with T2: Ahmed coordinates GST and T2 filing to ensure both deadlines are met.
Late Filing Penalties
CRA charges a late filing penalty of 5% of the unpaid balance plus 1% per month for up to 12 months. If you were charged a late filing penalty in any of the three prior years, the penalty doubles to 10% plus 2% per month for up to 20 months.
| Situation | Base Penalty | Monthly Penalty | Max Months |
|---|---|---|---|
| First late filing | 5% of balance owing | 1% per month | 12 months |
| Repeat late filer | 10% of balance owing | 2% per month | 20 months |
| Late filing, no balance | No penalty | No penalty | N/A |
Interest Calculation
CRA charges interest on unpaid tax balances starting from the balance due date, not the filing deadline. Interest compounds daily at CRA's prescribed rate (typically 9-10% as of 2024-2025). Interest is not deductible and accrues until the balance is paid in full.
- Daily compounding: Interest accrues daily from the balance due date until paid.
- Prescribed rate: CRA sets the rate quarterly, typically 9-10% in 2024-2025.
- Non-deductible: Interest paid to CRA is not deductible as a business expense.
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