Corporate income tax returns - General information

All income earned by the corporation during the taxation year must be reported on the income tax return.

Do I have to file an income tax return?

All non-resident corporations, including loan-out corporations, must file an income tax return with the CRA if:

• the corporation carried on business in Canada;
• the corporation disposed of a taxable Canadian property at any time in the tax year;
• the corporation had a taxable capital gain; or
• the CRA sent a request to file an income tax return.

Note
You are required to file a return even if the CRA grants a waiver of withholding tax because any profit(s) or gain(s) realized are exempt from Canadian tax due to the provision of a tax treaty and/or there is no tax payable.

For information on filing requirements for behind the scenes personnel who are non-resident individuals, see Income tax returns - Individuals.

Which form should I use to file my tax return?

Use the T2 Corporation Income Tax Return.

If the corporation is eligible for an exemption from tax under a tax treaty between Canada and its country of residence, tick "yes" on line 082 and attach Schedule 91, Information Concerning Claims for Treaty-Based Exemptions. If your payer withheld tax, complete lines 800 and 801 to claim a refund.

If the corporation is not eligible for an exemption under a tax treaty between Canada and its country of residence, complete RC4088, Guide to the General Index of Financial Information (GIFI) for Corporations.

GIFI schedules include:

• Schedule 100, Balance Sheet Information;
• Schedule 125, Income Statement Information; and
• Schedule 141, Notes Checklist.

Schedule 1 is required if your net income or loss on your financial (income) statement is different from your net income or loss for income tax purposes.

When is the deadline for filing my return?

Corporations must file their income tax return within six months of the end of the corporation's year-end.

What happens if I file my return late?

If you file your return after the deadline, we will charge you:

1. a penalty of 5% of the unpaid tax, plus 1% of that tax for each full month that the return is late, up to a maximum of 12 months; or
2. a larger penalty if we have required that you file under subsection 150(2), or if we have assessed a late-filing penalty in any of the three previous taxation years. The penalty would then be 10% of the unpaid tax, plus 2% of that tax for each full month that the return is late, up to a maximum of 20 months.

An alternative late-filing penalty charged to non-resident corporations is the greater of:

• $100.00; or
•  $25.00 multiplied by the number of days late, not exceeding 100, from the day on which the return was required to be filed to the day on which the return is filed.

The alternative penalty is applied when the amount calculated is more than the penalties usually applied under 1 and 2 above. Please note that this penalty applies to corporations that are exempt from tax under a tax treaty and have no tax payable.

Where do I send my return?

Send your income tax return to:

International and Ottawa Tax Services Office
2204 Walkley Road
Ottawa ON  K1Z 1A8
Canada

Forms and publications

• T2 Corporation Income Tax Return
• Schedule 91, Information Concerning Claims for Treaty-Based Exemptions
• RC4088, Guide to the General Index of Financial Information (GIFI) for Corporations
• Schedule 100, Balance Sheet Information
• Schedule 125, Income Statement Information
• Schedule 141, Notes Checklist.
• Schedule 1, Net Income (Loss) for Income Tax Purposes

Related topics

• Tax treaties