Corporate Tax Deadline 2024

Corporate Tax

The 2024 Corporation tax deadline is fast approaching in Canada. Understanding both the corporate filing and payment deadlines is essential for any corporation aiming to avoid unnecessary penalties and keep your company in good standing with the Canada Revenue Agency (CRA). Let’s discuss the corporation tax deadline in detail so we can have a better understanding of how to navigate this process.

Corporate Tax Payment Deadlines

Corporate tax deadlines are crucial to avoid penalties or interest charges. The key points of the corporate tax payment deadlines are given below:

Difference between filing vs. payment deadline 

Corporations have up to six months to file their tax returns. On the other hand, the tax payment deadline is typically two months after the end of the tax year. Depending on the situation of the corporation, the deadlines apply to both full and partial tax payments.

Qualification for Extended Payment Deadline

Under specific conditions, some corporations may qualify for an extended three-month payment deadline. However, this should be checked with the relevant tax authorities for further details.

Instalment Payments

Corporations can make monthly or quarterly Instalment payments generally and the partial payments go to the total annual tax bill. They are calculated on the basis of federal income tax, and territorial and provincial tax requirements.

Instalment payments are due on the last day of every full month or complete quarter of the tax year. The first payment is always one month or one quarter less a day from the start of the tax year, with subsequent payments following a regular schedule.

Exemptions from Instalment Payments

  • New Corporations: Newly established corporations only have to pay instalment payments in their second year of operation. However, any taxes owed for the first year must be paid in full before the balance due date.
  • Tax Payable Amount <= $3,000: Corporations with a total tax amount owed of $3,000 or less are exempt from making instalment payments but must pay the full amount before the tax payment deadline.
  • Short Tax Year: In cases where the tax year is shorter than one month or one quarter (for small Canadian Controlled Private Corporations), Instalment payments are not required. This scenario may occur when the corporation changes its year-end tax date, resulting in a shortened tax year.

Corporate Tax Filing Deadline

For most corporations in Canada commonly referred to as Canadian Controlled Private Corporations, the deadline for filing the 2023 corporation tax return is six months after the fiscal year-end. If you’re a business owner, you’ll need to have your financial records in order and your tax return prepared by this date to ensure that you meet the deadline.

Meeting the Deadline

There are several essential things to keep in mind as you prepare for the 2024 corporation tax deadline. First and foremost, it’s necessary to understand the different types of corporate taxes you may be required to pay. These include federal corporation tax, provincial corporation tax, and HST. Each of these taxes has its rules and requirements, so it’s important to be aware of the specifics of each tax. Another critical aspect of the corporation tax deadline is accurately calculating your taxable income. This involves determining your total revenue for the year, subtracting eligible expenses, and determining any other deductions or credits for which you may be eligible.

To ensure that you meet the 2024 corporation tax deadline, staying organized and keeping track of your financial records is essential. This includes invoices, receipts, bank statements, and other relevant documentation. By keeping these records organized, you’ll be able to quickly and easily complete your tax return when the deadline arrives. Finally, it’s worth noting that the 2024 corporation tax deadline is just the start of your obligations as a business owner. Throughout the year, it’s crucial to stay up-to-date on any changes to tax laws and regulations and to keep accurately tracking your financial records to ensure that you comply with all tax requirements.

So, the 2023 corporation tax deadline is crucial for all Canadian businesses. By staying informed, organized, and on top of your tax obligations, you can ensure that your business remains in good standing with the CRA and avoid any penalties or complications down the line.

Filing the Corporation Tax

Filing corporation tax in Canada is a process that requires careful preparation and attention to detail. However, it can be straightforward and manageable with the proper guidance and resources. Here’s a step-by-step guide to help you file your corporation tax in Canada:

  1. Gather Your Financial Records: The first step in filing your corporation tax is to gather all of your financial records, including invoices, receipts, bank statements, and any other relevant documentation. This information will be used to calculate your taxable income and determine the amount of tax you owe.
  2. Calculate Your Taxable Income: Once you have your financial records, the next step is calculating your taxable income. This involves determining your total revenue for the year, subtracting eligible expenses, and determining any other deductions or credits for which you may be eligible.  Schedule 1 on your T2 corporate tax return reconciliation shows the adjustments from accounting profit to taxable income.
  3. Determine Your Tax Obligations: Based on your taxable income, you’ll need to determine the amount of federal and provincial corporation tax you owe and any HST. The rules and rates for these taxes vary depending on the jurisdiction in which your business is located, so it’s essential to be aware of the specifics for your area.  
  4. Complete the T2 Corporate Tax Return: Once you have all the information, the next step is to complete the corporation tax return. This form is available from the Canadian Revenue Agency (CRA) and can be completed online or by mail. When completing the form, be sure to include all relevant information and double-check your calculations to ensure that your return is accurate.
  5. File the Return and Pay Any Taxes Owed: Once you’ve completed your corporation T2 tax return, the next step is to file the return with the CRA and pay any taxes owed. This can be done online through the CRA’s website, by mail, or through a tax professional or accountant. If you owe taxes, pay them by the deadline to avoid penalties and interest charges.
  6. Keep Records and Receipts: Finally, keeping a record of your corporation T2 tax return and any receipts or documentation you used to prepare it is important. These records can be used in the event of an audit or for reference in future tax filings.

Missing The Corporation Tax Deadline Canada 2024

Missing the corporation tax deadline in Canada can seriously harm your business. The Canadian Revenue Agency (CRA) takes tax compliance very seriously. If you miss the deadline for filing your corporation tax return, you could face various penalties and fines. Here’s what you need to know:

  1. Late Filing Penalty: 

You’ll be charged a late filing penalty if you miss the Canadian corporation tax deadline. This penalty is calculated as 5% of your balance owing plus 1% of your balance due for each month your return is late, up to a maximum of 12 months. This means that if your balance owing is $10,000, and you file your return 6 months late, you could be facing a late filing penalty of $1,100.

  1. Interest Charges: 

In addition to the late filing penalty, you’ll also be charged interest on any balance owing. The interest rate is set by the CRA and is subject to change. Currently, the interest rate is 10% per year.

  1. Audit Risk: 

You must complete the corporation tax deadline to avoid being audited by the CRA. The CRA may decide to audit your business if they suspect you have underreported your income, claimed inappropriate expenses, or failed to comply with tax laws and regulations.

  1. Criminal Penalties: 

In severe cases, missing the corporation tax deadline can lead to criminal penalties, including fines and imprisonment. These penalties are typically reserved for cases of tax evasion or fraud.

  1. Loss of Benefits: 

If you miss the Filing corporation tax return deadline, you may be ineligible for certain benefits and credits, such as the Scientific Research and Experimental Development (SR&ED) tax credit.

In conclusion, missing the corporate tax return deadline in Canada can have severe consequences for your business. It’s important to take tax compliance seriously and ensure that you meet all your obligations on time. If you’re struggling to meet the deadline, consider speaking to a tax professional or accountant for guidance.

Frequently Asked Questions

Q. Is the corporate tax deadline extended?

To pay corporate taxes, the form must be filed within six months of a corporation’s taxation year end: June 30, 2024, for a December 31, 2023 year-end. The corporation tax deadline in Canada is six months from the company’s year-end.

Q. What happens if you miss the corporation tax deadline?

When you miss the corporate tax deadline, you must pay 5% of your 2023 balance owing, plus an additional 1% for each month you file after the due date, to a maximum of 12 months.

Q. What is the tax deadline for 2024 taxes?

The current Canadian corporate tax deadline for 2023 taxes is six months from the company’s alleged year-end date.

Q. How late can you file taxes for 2023?

You can take up to 12 months past the deadline, but each month has a penalty you will have to pay at all costs. It is better to file your taxes on time.

Consider Getting Help

A Canadian Chartered Professional Accountant (CPA) can play a valuable role in helping businesses pay their corporation tax on time in Canada. Firstly, a CPA can help companies to plan their tax strategies to minimize their tax liabilities and ensure they meet their obligations on time. This may involve identifying tax credits, deductions, and other opportunities to reduce their tax bill and ensuring that their financial records and reporting are in order.

CPAs can also prepare and file a business’s corporation tax return on their behalf, ensuring that it is accurate and compliant with all applicable laws and regulations. This can help businesses avoid penalties and fines for late filing or faulty returns.

If a business is audited by the CRA, a CPA can represent the business and provide support throughout the audit process. This can help ensure that the business’s rights and interests are protected and that any issues or disputes are resolved efficiently.

Moreover, CPAs can provide expert advice and guidance on tax laws and regulations, helping businesses understand their obligations and make informed decisions about their tax planning and reporting. SRJ Chartered Professional Accountants Corporation is a cloud CPA firm based out of Toronto that specializes in helping individuals and businesses with tax planning and reducing taxes. If you want to learn more about how we can help you reduce your tax bill, contact us at or 647-370-1519.