Corporate Year-end

Who

A corporation is a separate legal entity used as a business structure in Canada. It is created through incorporation at the federal or provincial level and requires registration for a business number with the CRA.

What

Once incorporated, a corporation selects a fiscal year‑end date. The first fiscal period may be up to 53 weeks from the date of incorporation and does not need to end on December 31. The selected year‑end establishes the corporation’s ongoing corporate tax (T2) filing requirements.

When

A T2 corporate income tax return is required to be filed within six months of the corporation’s fiscal year‑end.

Any corporate income taxes owing are generally due two months after the fiscal year‑end. Certain Canadian‑controlled private corporations (CCPCs) may qualify for a three‑month payment deadline, depending on their circumstances.

Where

A CPA can assist with corporate tax filing and related reporting obligations, including the preparation of compiled financial statements under CSRS 4200, where applicable. Please reach out to book a consultation to get started.

Why

Corporate year‑end reporting is required to maintain CRA compliance, including the filing of tax returns and payment of any taxes owing.

Year‑end financial information is also used to assess business performance and support decision‑making. In some cases, third parties such as banks or lenders may require compiled financial statements as part of their reporting requirements.

Disclaimer
The information provided in this blog post is for general informational purposes only and does not constitute accounting, tax, or legal advice. Tax laws and reporting requirements vary based on individual circumstances and are subject to change. Readers should not act on this information without seeking professional advice specific to their situation. Reading this blog does not create a client‑advisor relationship.