Canada: Domestic Corporate Taxation
Filing Requirements and Payment of Tax
This page was last updated on 5 June 2019.
Apart from Quebec and Alberta, which have their own corporation tax collection agencies, provincial and territorial corporation taxes are collected by the Canada Revenue Agency (CRA) along with federal taxes.
A corporation tax return must be submitted to the CRA within six months after the end of the company’s tax year. Failure to file the return on time will result in a penalty of 5% of the unpaid tax that would have been due on the filing deadline, plus an additional 1% of the outstanding tax for each month the return remains unfiled. If still unfiled after 12 months, higher penalties apply. Other penalties apply in specific instances in relation to certain companies and forms required to be filed.
Corporation tax is payable in monthly or quarterly instalments, depending on the type of business and subject to a C$3,000 threshold. Late payments and underpayments are subject to instalment interest, plus a penalty calculated by subtracting from the instalment interest the greater of C$1,000 or 25% of the instalment interest calculated if no instalment has been made for the year.
Corporations can choose to file their tax returns electronically. Any corporation with gross annual income that exceeds C$1 million is obliged to do so.