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Get Canada T2 Tax Form

Canada T2 Tax Example

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Guide to Writing Canada T2 Tax

Understanding Canada T2 Tax

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Canada T2 Tax Example

Document Specifics

Guide to Writing Canada T2 Tax

Understanding Canada T2 Tax

Common mistakes

Documents used along the form

Similar forms

Dos and Don'ts

Misconceptions

Key takeaways

Popular PDF Documents

➵

The Canada T2 Tax Form is the primary document corporations use to file their income taxes for federal, provincial, and territorial purposes, except in Quebec and Alberta, where separate provincial returns are required. For smaller businesses that meet certain criteria, a simplified version, the T2SHORT, offers a streamlined filing option. It's essential for corporations to submit this form alongside relevant schedules and financial information within six months after the end of their tax year, to accurately report and compute their tax obligations.

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The Canada T2 Tax Form is crucial for corporations operating within the country, except for those located in Quebec or Alberta, which require a different provincial return. This comprehensive document acts as the federal, provincial, and territorial corporation income tax return for the tax years 2019 and onwards. It demands meticulous attention, as it entails submitting a completed copy to the assigned tax centre, inclusive of schedules and the General Index of Financial Information (GIFI), within six months following the corporation's tax year-end. The form accommodates various corporate identities by providing a T2SHORT version for qualifying companies, ensuring a tailored approach to each entity's fiscal responsibilities. The inclusion of legislative references underscores the necessity for adherence to the Income Tax Act and Regulations, acknowledging that amendments may arise post-publication. Navigation through this form is guided by mandatory disclosures, ranging from basic corporate information and financial statement data to detailed schedules reflecting the corporation's financial activities and status. Each section and schedule of the T2 Return has been designed with precision to capture essential information, aiding in the accurate assessment and computation of tax liabilities, while also considering changes in corporate structure or status. The form’s comprehensive nature highlights its significance in maintaining compliance with Canadian tax laws, serving as a critical tool in the corporate fiscal management landscape.

200

T2 Corporation Income Tax Return

(2019 and later tax years)

This form serves as a federal, provincial, and territorial corporation income tax return, unless the corporation is located in Quebec or Alberta. If the corporation is located in one of these provinces, you have to file a separate provincial corporation return. A shorter version of the return, the T2SHORT, is available for eligible corporations.

All legislative references on this return are to the federal Income Tax Act and Income Tax Regulations. This return may contain changes that had not yet become law at the time of publication.

Send one completed copy of this return, including schedules and the General Index of Financial Information (GIFI), to your tax centre. You have to file the return within six months after the end of the corporation's tax year.

For more information see canada.ca/taxes or Guide T4012, T2 Corporation – Income Tax Guide.

Code 1902

Protected B

when completed

055Do not use this area

Identification

Business number (BN)

001

Corporation's name

To which tax year does this return apply?

002

Tax year start

Tax year-end

Year Month Day

060

061

Address of head office

Has this address changed since the

Yes

Has there been an acquisition of control

010

last time we were notified?

resulting in the application of

If yes, complete lines 011 to 018.

subsection 249(4) since the tax year

Yes

063

start on line 060?

011

Year Month Day

012

If yes, provide the date control was

065

City

Province, territory, or state

acquired

015

016

Is the date on line 061 a deemed

Country (other than Canada)

Postal or ZIP code

tax year-end according to

Yes

066

subsection 249(3.1)?

017

018

Is the corporation a professional

Mailing address (if different from head office address)

corporation that is a member of a

Yes

Has this address changed since the

partnership?

067

last time we were notified?

020

Yes

If yes, complete lines 021 to 028.

Is this the first year of filing after:

Yes

Incorporation?

070

021

c/o

071

Yes

Amalgamation?

022

If yes, complete lines 030 to 038 and attach Schedule 24.

023

Has there been a wind-up of a

City

Province, territory, or state

subsidiary under section 88 during the

Yes

025

026

072

current tax year?

Country (other than Canada)

Postal or ZIP code

If yes, complete and attach Schedule 24.

027

028

Is this the final tax year before

Yes

Location of books and records (if different from head office address)

076

amalgamation?

Has this address changed since the

Yes

Is this the final return up to

last time we were notified?

030

078

Yes

dissolution?

If yes, complete lines 031 to 038.

If an election was made under section 261, state

079

031

the functional currency used

032

Yes

Is the corporation a resident of Canada?

080

City

Province, territory, or state

If no, give the country of residence on line 081 and complete and attach

035

036

Schedule 97.

Country (other than Canada)

Postal or ZIP code

081

037

038

Is the non-resident corporation claiming

040

Type of corporation at the end of the tax year (tick one)

an exemption under an income tax

Yes

082

treaty?

1 Canadian-controlled private corporation (CCPC)

If yes, complete and attach Schedule 91.

2 Other private corporation

If the corporation is exempt from tax under section 149, tick one of the

3 Public corporation

following boxes:

Exempt under paragraph 149(1)(e) or (l)

4 Corporation controlled by a public corporation

085

5 Other corporation (specify)

Exempt under paragraph 149(1)(j)

Exempt under paragraph 149(1)(t)

If the type of corporation changed

(for tax years starting before 2019)

Year Month Day

during the tax year, provide the

043

Exempt under other paragraphs of section 149

effective date of the change

Do not use this area

095

096

898

T2 E (20)

(Ce formulaire est disponible en français.)

Page 1 of 9

Attachments

Protected B when completed

Financial statement information: Use GIFI schedules 100, 125, and 141.

Schedules – Answer the following questions. For each yes response, attach the schedule to the T2 return, unless otherwise instructed.

Yes Schedule

Is the corporation related to any other corporations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation an associated CCPC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation an associated CCPC that is claiming the expenditure limit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Does the corporation have any non-resident shareholders who own voting shares? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation had any transactions, including section 85 transfers, with its shareholders, officers, or employees,

other than transactions in the ordinary course of business? Exclude non-arm's length transactions with non-residents . . . . . . . . . . .

If you answered yes to the above question, and the transaction was between corporations not dealing at arm's length,

were all or substantially all of the assets of the transferor disposed of to the transferee? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation paid any royalties, management fees, or other similar payments to residents of Canada? . . . . . . . . . . . . . . . . . .

Is the corporation claiming a deduction for payments to a type of employee benefit plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a loss or deduction from a tax shelter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation a member of a partnership for which a partnership account number has been assigned? . . . . . . . . . . . . . . . . . . . .

Did the corporation, a foreign affiliate controlled by the corporation, or any other corporation or trust that did not deal at arm's length with the corporation have a beneficial interest in a non-resident discretionary trust (without reference to section 94)? . . . . . . . . . . . .

Did the corporation own any shares in one or more foreign affiliates in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation made any payments to non-residents of Canada under subsections 202(1) and/or 105(1) of

the Income Tax Regulations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation have a total amount over CAN$1 million of reportable transactions with non-arm's length non-residents? . . . . . .

For private corporations: Does the corporation have any shareholders who own 10% or more of the corporation's common

and/or preferred shares? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation made payments to, or received amounts from, a retirement compensation plan arrangement during the year? Does the corporation earn income from one or more Internet web pages or websites? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the net income/loss shown on the financial statements different from the net income/loss for income tax purposes? . . . . . . . . . . .

Has the corporation made any charitable donations; gifts of cultural or ecological property; or gifts of medicine? . . . . . . . . . . . . . . . .

Has the corporation received any dividends or paid any taxable dividends for purposes of the dividend refund? . . . . . . . . . . . . . . . .

Is the corporation claiming any type of losses? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a provincial or territorial tax credit or does it have a

permanent establishment in more than one jurisdiction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation realized any capital gains or incurred any capital losses during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . .

i)Is the corporation a CCPC and reporting a) income or loss from property (other than dividends deductible on line 320 of the T2 return), b) income from a partnership, c) income from a foreign business, d) income from a personal services business, e) income referred to in clause 125(1)(a)(i)(C) or 125(1)(a)(i)(B), f) aggregate investment income as defined in subsection 129(4), or g) an amount assigned to it under subsection 125(3.2) or 125(8); or

ii)Is the corporation a member of a partnership and assigning its specified partnership business limit to a designated member under subsection 125(8)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Does the corporation have any property that is eligible for capital cost allowance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Does the corporation have any resource-related deductions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming deductible reserves? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a patronage dividend deduction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation a credit union claiming a deduction for allocations in proportion to borrowing or a provincial credit union tax reduction? Is the corporation an investment corporation or a mutual fund corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation carrying on business in Canada as a non-resident corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming any federal, provincial, or territorial foreign tax credits, or any federal logging tax credits? . . . . . . . . . . . .

Does the corporation have any Canadian manufacturing and processing profits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming an investment tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming any scientific research and experimental development (SR&ED) expenditures? . . . . . . . . . . . . . . . . . . . .

Is the total taxable capital employed in Canada of the corporation and its related corporations over $10,000,000? . . . . . . . . . . . . . . .

Is the total taxable capital employed in Canada of the corporation and its associated corporations over $10,000,000? . . . . . . . . . . . .

Is the corporation subject to gross Part VI tax on capital of financial institutions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a Part I tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation subject to Part IV.1 tax on dividends received on taxable preferred shares or Part VI.1 tax on dividends paid? . . .

Is the corporation agreeing to a transfer of the liability for Part VI.1 tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For financial institutions: Is the corporation a member of a related group of financial institutions

with one or more members subject to gross Part VI tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a Canadian film or video production tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a film or video production services tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation claiming a Canadian journalism labour tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the corporation subject to Part XIII.1 tax? (Show your calculations on a sheet that you identify as Schedule 92.) . . . . . . . . . . . . . .

150

160

161

151

162

163

164

165

166

167

168

169

170

171

173

172

180

201

202

203

204

205

206

207

208

212

213

216

217

218

220

221

227

231

232

233

234

238

242

243

244

250

253

254

272

255

T5004

T5013

T106

T661

33/34/35

T1131

T1177

Page 2 of 9

Attachments (continued)

Protected B when completed

Did the corporation have any foreign affiliates in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation own or hold specified foreign property where the total cost amount of all such property, at any time in the year, was more than CAN$100,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation transfer or loan property to a non-resident trust? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation receive a distribution from or was it indebted to a non-resident trust in the year? . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation entered into an agreement to allocate assistance for SR&ED carried out in Canada? . . . . . . . . . . . . . . . . . . . . .

Has the corporation entered into an agreement to transfer qualified expenditures incurred in respect of SR&ED contracts? . . . . . . .

Has the corporation entered into an agreement with other associated corporations for salary or wages of

specified employees for SR&ED? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation pay taxable dividends (other than capital gains dividends) in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation made an election under subsection 89(11) not to be a CCPC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Has the corporation revoked any previous election made under subsection 89(11)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation (CCPC or deposit insurance corporation (DIC)) pay eligible dividends, or did its

general rate income pool (GRIP) change in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did the corporation (other than a CCPC or DIC) pay eligible dividends, or did its low rate income pool (LRIP)

change in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

271

259

260

261

262

263

264

265

266

267

268

269

T1134

T1135

T1141

T1142

T1145

T1146

T1174

T2002

Additional information

Did the corporation use the International Financial Reporting Standards (IFRS) when it prepared its financial statements?			270	Yes

Is the corporation inactive?			280	Yes
		. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Specify the principal products mined, manufactured,	284
sold, constructed, or services provided, giving the	286
approximate percentage of the total revenue that	286

	288
each product or service represents.	288
each product or service represents.
				Yes
Did the corporation immigrate to Canada during the tax year?			291	Yes

Did the corporation emigrate from Canada during the tax year?			292	Yes
				Yes
			293
Do you want to be considered as a quarterly instalment remitter if you are eligible?			293

285%

287%

289%

If the corporation was eligible to remit instalments on a quarterly basis for part of the tax year, provide the date the
	294
corporation ceased to be eligible

Year Month Day

If the corporation's major business activity is construction, did you have any subcontractors during the tax year?	295	Yes

Taxable income

Net income or (loss) for income tax purposes from Schedule 1, financial statements, or GIFI				300
	. . . .	.	. . . . . . . . . . . . . . . .

Deduct:
Deduct:	311
Charitable donations from Schedule 2	311
Charitable donations from Schedule 2
Cultural gifts from Schedule 2	313
Cultural gifts from Schedule 2
Ecological gifts from Schedule 2	314
Ecological gifts from Schedule 2
Gifts of medicine made before March 22, 2017, from Schedule 2	315

Taxable dividends deductible under section 112 or 113, or subsection 138(6)
	320
from Schedule 3	320
from Schedule 3
Part VI.1 tax deduction*	325
Part VI.1 tax deduction*
Non-capital losses of previous tax years from Schedule 4	331
Non-capital losses of previous tax years from Schedule 4	332
Net capital losses of previous tax years from Schedule 4	332
Net capital losses of previous tax years from Schedule 4	333
Restricted farm losses of previous tax years from Schedule 4	333

Farm losses of previous tax years from Schedule 4	334
Farm losses of previous tax years from Schedule 4	335
Limited partnership losses of previous tax years from Schedule 4	335

Taxable capital gains or taxable dividends allocated from a central credit union	340

Prospector's and grubstaker's shares	350
				►

Subtotal (amount A minus amount B) (if negative, enter "0")

Section 110.5 additions or subparagraph 115(1)(a)(vii) additions				355
	. . . .	.	. . . . . . . . . . . . . . .
Taxable income (amount C plus amount D)				360
	. . . .	.	. . . . . . . . . . . . . . .
				370
Income exempt under paragraph 149(1)(t) (for tax years starting before 2019)				370
	. . . .	.	. . . . . . . . . . . . . . .

Taxable income for a corporation with exempt income under paragraph 149(1)(t) (line 360 minus line 370)
* This amount is equal to 3.5 times the Part VI.1 tax payable at line 724 on page 9.

Page 3 of 9

	Small business deduction	Protected B when completed
	Small business deduction
Canadian-controlled private corporations (CCPCs) throughout the tax year

Income eligible for the small business deduction from Schedule 7		400	A

Taxable income from line 360 on page 3, minus 100/28 of the amount on line 632* on page 8, minus 4 times the amount on
		405	B
line 636** on page 8, and minus any amount that, because of federal law, is exempt from Part I tax		405	B
Business limit (see notes 1 and 2 below)		410	C

Notes:

1.For CCPCs that are not associated, enter $500,000 on line 410. However, if the corporation's tax year is less than 51 weeks, prorate this amount by the number of days in the tax year divided by 365, and enter the result on line 410.

2.For associated CCPCs, use Schedule 23 to calculate the amount to be entered on line 410.

Business limit reduction

Taxable capital business limit reduction

Amount C

415

***

11,250

Passive income business limit reduction

– 50,000 = . . .

Adjusted aggregate investment income from Schedule 7 ****

. . . . .

. . .

417

Amount C

× Amount F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100,000

The greater of amount E and amount G	422
The greater of amount E and amount G

Reduced business limit for tax years starting before 2019 (amount C minus amount E) (if negative, enter "0")	425


Reduced business limit for tax years starting after 2018 (amount C minus amount H) (if negative, enter "0")	426

Business limit the CCPC assigns under subsection 125(3.2) (from line 515 on page 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	427
Reduced business limit after assignment for tax years starting before 2019 (amount I minus amount K)
	428
Reduced business limit after assignment for tax years starting after 2018 (amount J minus amount K)
Small business deduction
Tax years starting before 2019

Amount A, B, C, or L, whichever is the least

×	Number of days in the tax year	× 17.5%			=
	before January 1, 2018
	Number of days in the tax year
×	Number of days in the tax year after	×			=
	December 31, 2017, and before January 1, 2019			18%
	Number of days in the tax year
×	Number of days in the tax year		×		=
	after December 31, 2018			19%

Number of days in the tax year

Tax years starting after 2018
Amount A, B, C, or M, whichever is the least	×	19% =
Amount A, B, C, or M, whichever is the least

Small business deduction (total of amounts 1 to 4)	430
Small business deduction (total of amounts 1 to 4)
Enter amount N at amount J on page 8.

*Calculate the amount of foreign non-business income tax credit deductible on line 632 without reference to the refundable tax on the CCPC's investment income (line 604) and without reference to the corporate tax reductions under section 123.4.

**Calculate the amount of foreign business income tax credit deductible on line 636 without reference to the corporation tax reductions under section 123.4.

***Large corporations

•If the corporation is not associated with any corporations in both the current and previous tax years, the amount to be entered on line 415 is: (total taxable capital employed in Canada for the prior year minus $10,000,000) x 0.225%.

•If the corporation is not associated with any corporations in the current tax year, but was associated in the previous tax year, the amount to be entered on line 415 is: (total taxable capital employed in Canada for the current year minus $10,000,000) x 0.225%.

•For corporations associated in the current tax year, see Schedule 23 for the special rules that apply.

****Enter the total adjusted aggregate investment income of the corporation and all associated corporations for each tax year that ended in the preceding calendar year. Each corporation with such income has to file a Schedule 7. For a corporation's first tax year that starts after 2018, this amount is reported at line 744 of the corresponding Schedule 7. Otherwise, this amount is the total of all amounts reported at line 745 of the corresponding Schedule 7 of the corporation for each tax year that ended in the preceding calendar year.

Page 4 of 9

Protected B when completed

Small business deduction (continued)

Specified corporate income and assignment under subsection 125(3.2)

	O		P		Q
Business number of		Income paid under		Business limit assigned to
the corporation		clause 125(1)(a)(i)(B) to the		corporation identified in
receiving the		corporation identified in		column O 4
assigned amount		column O 3

	490		500		505

Total

510

Total

515

Notes:

3.This amount is [as defined in subsection 125(7) specified corporate income (a)(i)] the total of all amounts each of which is income from an active business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner whatever) if

(A)at any time in the year, the corporation (or one of its shareholders) or a person who does not deal at arm's length with the corporation (or one of its shareholders) holds a direct or indirect interest in the private corporation, and

(B)it is not the case that all or substantially all of the corporation's income for the year from an active business is from the provision of services or property to

(I)persons (other than the private corporation) with which the corporation deals at arm's length, or

(II)partnerships with which the corporation deals at arm's length, other than a partnership in which a person that does not deal at arm's length with the corporation holds a direct or indirect interest.

4.The amount of the business limit you assign to a CCPC cannot be greater than the amount determined by the formula A – B, where A is the amount of income referred to in column P in respect of that CCPC and B is the portion of the amount described in A that is deductible by you in respect of the amount of income referred to in clauses 125(1)(a)(i)(A) or (B) for the year. The amount on line 515 cannot be greater than the amount on line 425 (426 for tax years starting after 2018).

General tax reduction for Canadian-controlled private corporations

Canadian-controlled private corporations throughout the tax year

Taxable income from page 3 (line 360 or amount Z, whichever applies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Lesser of amounts 9B and 9H from Part 9 of Schedule 27			B
Lesser of amounts 9B and 9H from Part 9 of Schedule 27	. . . . . . . . . . . . . . . . . . . . . . . .		C
Amount 13K from Part 13 of Schedule 27			C
Amount 13K from Part 13 of Schedule 27	. . . . . . . . . . . . . . . . . . . . . . . .		D
Personal services business income		432	D
Personal services business income	. . . . . . . . . . . . . . . . . . .
Amount from line 400, 405, 410, or 427 (428 instead of 427 for tax years starting after 2018)			E
on page 4, whichever is the least			E
on page 4, whichever is the least	. . . . . . . . . . . . . . . . . . . . . . . .		F
Aggregate investment income from line 440 on page 6* . .			F
Aggregate investment income from line 440 on page 6* . .	.Subtotal. . . . . . .(.add. . . amounts. . . . . . . .B. to F). . .		►
			►

Amount A minus amount G (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General tax reduction for Canadian-controlled private corporations – Amount H multiplied by 13% . . . . . . . . . . . . . . . . . . . . .

Enter amount I on line 638 on page 8.

* Except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union.

General tax reduction

Do not complete this area if you are a Canadian-controlled private corporation, an investment corporation, a mortgage investment corporation, a mutual fund corporation, or any corporation with taxable income that is not subject to the corporation tax rate of 38%.

Taxable income from page 3 (line 360 or amount Z, whichever applies)			. . . . . . . . .
Lesser of amounts 9B and 9H from Part 9 of Schedule 27			K
Lesser of amounts 9B and 9H from Part 9 of Schedule 27	. . . . . . . . . . . . . . . . . . . . . . . .		L
Amount 13K from Part 13 of Schedule 27			L
Amount 13K from Part 13 of Schedule 27	. . . . . . . . . . . . . . . . . . . . . . . .		M
Personal services business income		434	M
Personal services business income	. . . . . . . . . . . . . . . . . . .		►
	Subtotal (add amounts K to M)		►

Amount J minus amount N (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General tax reduction – Amount O multiplied by 13% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount P on line 639 on page 8.

O P

Page 5 of 9

Protected B when completed

Refundable portion of Part I tax

Canadian-controlled private corporations throughout the tax year

Aggregate investment income
Aggregate investment income		440	× 30 2/3% =
from Schedule 7	. . .	440	× 30 2/3% =	. . . . . . . . . . . . . . . . . .	. . . . . . . . . . .
Foreign non-business income tax credit from line 632 on page 8 . .			. . . . . . . . . . . . . . . . . . .		B
Foreign investment income
Foreign investment income		445	× 8% =		C
from Schedule 7	. . .	445	× 8% =		C
	Subtotal (amount B minus amount C) (if negative, enter "0")				◄
	Subtotal (amount B minus amount C) (if negative, enter "0")

Amount A minus amount D (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxable income from line 360 on page 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount from line 400, 405, 410, or 427 (428 instead of 427
for tax years starting after 2018) on page 4,				G
whichever is the least				G
whichever is the least
Foreign non-business
income tax credit from	×	75/29	=	H
line 632 on page 8 . . . .	×	75/29	=	H
line 632 on page 8 . . . .
Foreign business income	×	4	= . .	I
tax credit from line 636	×	4	= . .	I
tax credit from line 636
on page 8
on page 8	Subtotal (add amounts G to I)			◄
	Subtotal (add amounts G to I)

Subtotal (amount F minus amount J)

K × 30 2/3% =

Part I tax payable minus investment tax credit refund (line 700 minus line 780 from page 9)	. . .
Refundable portion of Part I tax – Amount E, L, or M, whichever is the least	450

Refundable dividend tax on hand (for tax years starting before 2019)

Refundable dividend tax on hand at the end of the previous tax year	460
Dividend refund for the previous tax year	465

Subtotal (line 460 minus line 465)				◄
Subtotal (line 460 minus line 465)
Refundable portion of Part I tax from line 450 above				P
				P
	. . .
Total Part IV tax payable from Schedule 3				Q
Total Part IV tax payable from Schedule 3	. . .
Net refundable dividend tax on hand transferred on an amalgamation or the wind-up
	480
of a subsidiary	480
of a subsidiary				◄
Subtotal (amount P plus amount Q plus line 480)
Subtotal (amount P plus amount Q plus line 480)

Refundable dividend tax on hand at the end of the tax year – Amount O plus amount R .					485
	. . .	. .	. . . . . . . . . . . . . . . . .	. . .

Dividend refund (for tax years starting before 2019)

Private and subject corporations at the time taxable dividends were paid in the tax year
Taxable dividends paid in the tax year from line 460 on page 3 of Schedule 3	× 38 1/3% =

Refundable dividend tax on hand at the end of the tax year from line 485 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dividend refund – Amount S or T, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount U on line 784 on page 9.

Page 6 of 9

Protected B when completed

Refundable dividend tax on hand (for tax years starting after 2018)

Refundable dividend tax on hand (RDTOH) at the end of the previous tax year	460

Dividend refund for the previous tax year	465

Net RDTOH transferred on an amalgamation or the wind-up of a subsidiary	480

Subtotal (line 460 minus line 465 plus line 480)		►

General rate income pool (GRIP) at the end of the previous tax year (from line 100 of schedule 53)	.	. .
Total eligible dividends paid in the previous tax year (from line 300 of schedule 53)		C
Total excessive eligible dividend designation in the previous tax year (from line 310 of Schedule 53)		D
Subtotal (amount C minus amount D) (if negative, enter "0")		►
. . . .Net GRIP at the end of the previous tax year (amount B minus amount E) (if negative, enter "0")		F
		F


GRIP transferred on an amalgamation or the wind-up of a subsidiary		G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(total of lines 230 and 240 of schedule 53)		G
		►

Subtotal (amount F plus amount G)

Amount H multiplied by 38 1/3%	.	. .
Eligible refundable dividend tax on hand (ERDTOH) at the end of the previous tax year (for the first tax year starting after
	520
. . . . . . . . . . .2018, amount A or I, whichever is less, otherwise, use line 530 of the preceding tax year)	520
Non-eligible refundable dividend tax on hand (NERDTOH) at the end of the previous tax year (for the first tax year starting
	535
after 2018, amount A minus amount I, otherwise, use line 545 of the preceding tax year) (if negative, enter "0")	535
Part IV tax payable on taxable dividends from connected corporations (amount 2G from Schedule 3)		L

Part IV tax payable on eligible dividends from non-connected corporations (amount 2J from Schedule 3)		M
Subtotal (amount L plus amount M)		►


. . . . . . . . . . . . . . . . . . . . .Net ERDTOH transferred on an amalgamation or the wind-up of a subsidiary	525

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ERDTOH dividend refund for the previous tax year	570
Refundable portion of Part I tax (from line 450 on page 6)	.	. .
Part IV tax before deductions (amount 2A from Schedule 3)		R
Part IV tax allocated to ERDTOH (amount N)		S
Part IV tax reduction due to Part IV.1 tax payable (amount 4D of Schedule 43)		T
Subtotal (amount R minus total of amounts S and T)		►


. . . . . . . . . . . . . . . . . . . .Net NERDTOH transferred on an amalgamation or the wind-up of a subsidiary	540

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .NERDTOH dividend refund for the previous tax year	575
38 1/3% of the total losses applied against Part IV tax (amount 2D from Schedule 3)	.	. .
Part IV tax payable allocated to NERDTOH, net of losses claimed (amount U minus amount X) (if negative enter “0”)	.	. .

NERDTOH at the end of the tax year (total of amounts K, Q, V, and Y minus amount W) (if negative, enter "0") . . . . . . . . 545

Part IV tax payable allocated to ERDTOH, net of losses claimed (amount N minus the amount, if any, by which amount X exceeds amount U) (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ERDTOH at the end of the tax year (total of amounts J, O, and Z minus amount P) (if negative, enter "0") . . . . . . . . . . . . . 530

Dividend refund (for tax years starting after 2018)

38 1/3% of total eligible dividends paid in the tax year (amount 3A from Schedule 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ERDTOH balance at the end of the tax year (line 530) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Eligible dividend refund (amount AA or BB, whichever is less) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38 1/3% of total non-eligible taxable dividends paid in the tax year (amount 3B from Schedule 3) . . . . . . . . . . . . . . . . . . . . . .

NERDTOH balance at the end of the tax year (line 545) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-eligible dividend refund (amount DD or EE, whichever is less) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount DD minus amount EE (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount BB minus amount CC (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional non-eligible dividend refund (amount GG or HH, whichever is less) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dividend refund – Amount CC plus amount FF plus amount II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount JJ on line 784 on page 9.

AA BB CC DD EE FF GG HH II

Page 7 of 9

Protected B when completed

Part I tax

Base amount Part I tax – Taxable income from page 3 (line 360 or amount Z, whichever applies) multiplied by 38% . . . . . .

Additional tax on personal services business income (section 123.5)

Taxable income from a personal services business

555

× 5% =

Recapture of investment tax credit from Schedule 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation for the refundable tax on the Canadian-controlled private corporation's (CCPC) investment income (if it was a CCPC throughout the tax year)

Aggregate investment income from line 440 on page 6			D
Aggregate investment income from line 440 on page 6	. . . . . . . . . . . . . . . . .	E. . . .
Taxable income from line 360 on page 3
Taxable income from line 360 on page 3
Deduct:
Amount from line 400, 405, 410, or 427 (428 instead of 427 for tax years		F
starting after 2018) on page 4, whichever is the least		F
Net amount (amount E minus amount F)		►	G

550			A

560			B

602			C

Refundable tax on CCPC's investment income – 10	2/3% of whichever is less: amount D or amount G						604
					. . . . . . . . . . . . . . . .	.

			Subtotal (add amounts A, B, C, and H)
Deduct:
Small business deduction from line 430 on page 4						J
Small business deduction from line 430 on page 4	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal tax abatement				608
Federal tax abatement
Manufacturing and processing profits deduction from Schedule 27				616
			620
Investment corporation deduction			620
Investment corporation deduction

Taxed capital gains	624

Federal foreign non-business income tax credit from Schedule 21				632

Federal foreign business income tax credit from Schedule 21				636
Federal foreign business income tax credit from Schedule 21			638
General tax reduction for CCPCs from amount I on page 5			638
General tax reduction for CCPCs from amount I on page 5
General tax reduction from amount P on page 5 . .				639
General tax reduction from amount P on page 5 . .
Federal logging tax credit from Schedule 21				640
Federal logging tax credit from Schedule 21		641
Eligible Canadian bank deduction under section 125.21
Eligible Canadian bank deduction under section 125.21
Federal qualifying environmental trust tax credit . . .				648
Federal qualifying environmental trust tax credit . . .
Investment tax credit from Schedule 31				652
			Subtotal			►

Part I tax payable – Amount I minus amount K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount L on line 700 on page 9.

Privacy statement

Personal information (including the SIN) is collected for the purposes of the administration or enforcement of the Income Tax Act and related programs and activities such as administering tax and benefits, audit, compliance, and collection. Personal information may be shared for purposes of other federal acts that provide for the imposition and collection of a tax or duty. Personal information may also be shared with other federal, provincial, territorial or foreign government institutions to the extent authorized by law. Failure to provide this information may result in interest payable, penalties or other actions. Under the Privacy Act, individuals have the right to access their personal information, request correction, or file a complaint to the Privacy Commissioner of Canada regarding the handling of the individual's personal information. Refer to Personal Information Bank CRA PPU 047 at canada.ca/cra-info-source.

Page 8 of 9

			Summary of tax and credits																																	Protected B when completed
			Summary of tax and credits
Federal tax
Federal tax																																				700
	Part I tax payable from amount L on page 8																																			700
	Part I tax payable from amount L on page 8														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part III.1 tax payable from Schedule 55																																			710
	Part III.1 tax payable from Schedule 55														. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part IV tax payable from Schedule 3																																			712
	Part IV tax payable from Schedule 3														. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part IV.1 tax payable from Schedule 43																																			716
	Part IV.1 tax payable from Schedule 43														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part VI tax payable from Schedule 38																																			720
	Part VI tax payable from Schedule 38														. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part VI.1 tax payable from Schedule 43																																			724
	Part VI.1 tax payable from Schedule 43														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
	Part XIII.1 tax payable from Schedule 92																																			727
	Part XIII.1 tax payable from Schedule 92														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .	728
	Part XIV tax payable from Schedule 20																																			728
	Part XIV tax payable from Schedule 20														. . .		.	.		. . . . . . . . . . . . . .				. .	. . . . . . . . .				. . . . . .	. . . . . . . . . .			. . .
																																	Total federal tax
Add provincial or territorial tax:
Add provincial or territorial tax:																	750
	Provincial or territorial jurisdiction																750
	Provincial or territorial jurisdiction
			(if more than one jurisdiction, enter "multiple" and complete Schedule 5)
	Net provincial or territorial tax payable (except Quebec and Alberta)																																			760
																												. . . . . . . . . .			. . .
																																Total tax payable				770		A
Deduct other credits:
Deduct other credits:																												780
	Investment tax credit refund from Schedule 31																											780
	Investment tax credit refund from Schedule 31														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. .
	Dividend refund from amount U on page 6 or JJ on page 7																											784
	Dividend refund from amount U on page 6 or JJ on page 7
	Federal capital gains refund from Schedule 18																											788
	Federal capital gains refund from Schedule 18														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. .
	Federal qualifying environmental trust tax credit refund																											792
	Federal qualifying environmental trust tax credit refund														. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. .
	Canadian film or video production tax credit (Form T1131)																											796
	Canadian film or video production tax credit (Form T1131)
	Film or video production services tax credit (Form T1177)																											797
	Film or video production services tax credit (Form T1177)																											798
	Canadian journalism labour tax credit from Schedule 58																											798
	Canadian journalism labour tax credit from Schedule 58															. . .	. . .		.	.		. . . . . . . . . . . . . .				. .	. .
	Tax withheld at source																											800
	Tax withheld at source							. . . . . . . .		. . . . . . . .			. .	. . . . . . . .	. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. .

		Total payments on which tax has been withheld															801
		Total payments on which tax has been withheld
	Provincial and territorial capital gains refund from Schedule 18																											808

	Provincial and territorial refundable tax credits from Schedule 5																											812
																												840
	Tax instalments paid																											840
	Tax instalments paid						. . . . . . . .		. . . . . . . .			. .	. . . . . . . .	. . .		. . .		.	.		. . . . . . . . . . . . . .				. .	. .								►
																								Total credits				890						►				B

																							◄					Balance (amount A minus amount B)

Refund code						894					Refund																	If the result is negative, you have a refund.
																												If the result is positive, you have a balance owing.
																												If the result is positive, you have a balance owing.
	Direct deposit request																											Enter the amount on whichever line applies.
	Direct deposit request																											Generally, we do not charge or refund a difference
	To have the corporation's refund deposited directly into the corporation's bank																											of $2 or less.

	account at a financial institution in Canada, or to change banking information you																											Balance owing									◄
	already gave us, complete the information below:																											Balance owing									◄
	already gave us, complete the information below:
				Start			Change information																					For information on how to make your payment, go to
				Start			Change information									910												For information on how to make your payment, go to
																							Branch number					canada.ca/payments.
	914										918
	914										918

					Institution number										Account number

If the corporation is a Canadian-controlled private corporation throughout the tax year, does it qualify for the		Yes
	896
one-month extension of the date the balance of tax is due?

If this return was prepared by a tax preparer for a fee, provide their EFILE number	920

Certification

I,	950				951				954			,
			Last name				First name				Position, office, or rank

am an authorized signing officer of the corporation. I certify that I have examined this return, including accompanying schedules and statements, and that the information given on this return is, to the best of my knowledge, correct and complete. I also certify that the method of calculating income for this tax year is consistent with that of the previous tax year except as specifically disclosed in a statement attached to this return.

955			956

	Date (yyyy/mm/dd)	Signature of the authorized signing officer of the corporation		Telephone number

Name of other authorized personTelephone number

Language of correspondence – Langue de correspondance

	Indicate your language of correspondence by entering 1 for English or 2 for French.	990
	Indiquez votre langue de correspondance en inscrivant 1 pour anglais ou 2 pour français.	990

Page 9 of 9

Download PDF Form

Fact	Details
Form Designation	The T2 Corporation Income Tax Return applies to the 2019 and later tax years.
Scope of Application	It serves as a federal, provincial, and territorial corporation income tax return, excluding corporations in Quebec or Alberta.
Alternative Form Option	A shorter version, the T2SHORT, is available for eligible corporations.
Legislative References	All references are to the federal Income Tax Act and Income Tax Regulations.
Pre-Law Publication	This return may contain changes not yet law at the time of publication.
Filing Requirement	Corporations must file the return within six months after the end of their tax year.
Submission Instructions	Send one completed copy of this return, including schedules and the GIFI, to your tax centre.
Resource for Information	For more details, see canada.ca/taxes or the T2 Corporation – Income Tax Guide (Guide T4012).
Security Designation	Code 1902 indicates the form is Protected B when completed.

Filing the Canada T2 Tax Form can seem like a daunting task, but breaking it down into manageable steps can simplify the process. This form is essential for corporations to comply with federal, provincial, and territorial tax obligations. Here's a clear, step-by-step guide to help you complete the form accurately and efficiently.

Start with the Identification section. Enter the Business Number (BN), the Corporation's name, and details regarding the tax year this return covers (lines 001 to 002).
Provide the address of the head office (lines 060 to 066), answering whether there have been changes since last notification or acquisition of control (lines 010, 012).
If applicable, indicate changes in the mailing address or the location of books and records (lines 067 to 078).
Answer questions about the corporation's status, including residency, the type of corporation, and any exemptions it might claim (lines 080 to 096).
Complete the Schedules section based on the corporation's activities and financial transactions. This involves indicating whether specific schedules need to be attached due to various conditions such as related corporations, non-resident shareholders, and transactions with non-arm's length entities (questions leading up to attachments).
For financial statement information, use GIFI schedules 100, 125, and 141, ensuring all necessary schedules and forms are accurately completed and attached.
Review the section on additional information, providing details about the International Financial Reporting Standards (IFRS), major business activities, and any immigration or emigration of the corporation (lines 270 to 295).
Report taxable income, deductions, and net income or loss for income tax purposes, using lines 300 to 370 to provide detailed financial information.
Calculate the small business deduction if applicable, ensuring to accurately report income eligible for the deduction and any specified corporate income (pages 3 to 4).
Determine and apply any general tax reductions for Canadian-controlled private corporations or other types of corporations, completing the relevant sections on page 5.

Once all relevant sections are filled out, review the form thoroughly to ensure accuracy and completeness. Attach all required schedules and documentation, and send one completed copy to your tax centre within six months after the end of the corporation's tax year. Properly completing the T2 Tax Form helps ensure compliance with tax obligations and potentially optimizes the corporation's tax position.

What is the Canada T2 Tax Form?

The Canada T2 Tax Form is a document used by corporations to file their federal, provincial, and territorial corporation income taxes, with specific exceptions for corporations in Quebec or Alberta, which require separate provincial returns. It encompasses all legislative references to the federal Income Tax Act and Income Tax Regulations, and includes schedules and the General Index of Financial Information (GIFI).
Who needs to file the T2 Tax Form?

Any corporation operating within Canada, outside of Quebec and Alberta, must file the T2 Tax Form. Corporations based in Quebec or Alberta have to submit separate provincial corporation returns alongside their T2 filing.
Is there a simplified version of the T2 Form available?

Yes, the T2SHORT is a simplified version of the T2 Tax Form designed for eligible corporations. Criteria for eligibility focus on the complexity of the corporation's taxes and specific financial thresholds defined by the Canada Revenue Agency (CRA).
When is the T2 Tax Form due?

The form must be filed within six months after the end of the corporation's fiscal year. It's crucial for corporations to adhere to this timeline to avoid penalties for late filing.
What are some key schedules and documents to be attached with the T2?

Along with the T2 form, corporations need to attach schedules that correspond to specific sections of the tax return, including business activities, dividends, and more, as well as the General Index of Financial Information (GIFI) for financial statement data.
Can changes in corporate structures affect the T2 Filing?

Yes, events such as amalgamations, wind-ups, acquisitions of control, or changes in the corporation's status (e.g., from active to inactive), must be reported on the T2 and might require additional schedules or documentation.
Where can one find more information and guidance on filling out the T2 Tax Form?

The CRA provides resources such as the Guide T4012, T2 Corporation Income Tax Guide, available on their website at canada.ca/taxes. This guide offers comprehensive information on how to complete the T2 Tax Form and its schedules.

Filling out the Canada T2 Tax Form involves a detailed process where accurate information is key for corporations to comply with tax obligations. Mistakes in completing this form can lead to complications and potential penalties. Here are six common errors:

Not filing a separate provincial corporation return for corporations located in Quebec or Alberta, as required.
Incorrectly identifying the corporation type at the end of the tax year, leading to incorrect tax rate applications or missed tax benefits.
Omitting to attach the required schedules for specific yes responses in the Schedules section, which provide crucial details about the corporation's activities and financial matters.
Failing to update address changes for both the head office and the mailing address, thus risking misdirected correspondence or assessments.
Incorrectly reporting the tax year-end date can have significant repercussions on the filing deadlines and the applicable tax rates or provisions.
Omitting or inaccurately reporting transactions with non-residents, affiliates, and other important financial information, affecting the accuracy of the tax return.

To avoid these common missteps, it is recommended that corporations carefully review their T2 Tax Form before submission, ensuring that all information is accurate and complete. Staying informed about changes to tax laws and requirements is also crucial, as these can impact the filing process and the corporation's tax obligations.

When corporations in Canada prepare to file their T2 Corporation Income Tax Return, several additional forms and documents often accompany this essential filing. These documents are vital for providing comprehensive financial and operational details about the corporation, ensuring compliance with Canadian tax laws, and maximizing potential deductions and credits.

Schedule 1 - Net Income (Loss) for Income Tax Purposes: This schedule reconciles the net income or loss reported in the financial statements to the net income or loss for tax purposes. It includes adjustments for items that are treated differently for accounting and tax purposes.
Schedule 50 - Shareholder Information: Corporations are required to provide detailed information about their shareholders, including the number and class of shares held. This schedule is crucial for determining the control of the corporation and its eligibility for certain tax treatments.
Schedule 100 - Balance Sheet Information: This form provides a snapshot of the corporation’s financial position at the tax year-end, detailing assets, liabilities, and equity. It is essential for assessing the company's financial health and compliance with tax regulations.
Schedule 125 - Income Statement Information: This schedule outlines the corporation’s revenue, expenses, and net income or loss over the fiscal period. It complements the balance sheet data by providing a comprehensive view of the corporation’s operational performance.
Schedule 200 - T2 Corporation Income Tax Return: Although not a supplementary schedule, the T2 itself is indispensable and requires careful completion. It serves as the primary document for reporting corporate income tax owed to the federal government, summarizing the data provided in other schedules and forms.

For corporations operating in Canada, accurately completing and submitting these forms and documents in conjunction with the T2 Corporation Income Tax Return is critical. Not only do they ensure compliance with tax laws and regulations, but they also provide valuable insights into the corporation’s financial and operating status, influence short-term strategies and long-term planning, and affect the corporation’s relationship with shareholders, regulatory bodies, and the broader market.

The U.S. Form 1120, U.S. Corporation Income Tax Return, is quite similar to the Canada T2 Tax Form. Both serve as the primary income tax forms for corporations in their respective countries, detailing income, profits, and losses to determine the corporation's tax liability. Each form requires detailed financial information and includes schedules for specific deductions, credits, and other tax-related items relevant for corporations.

The U.K. Corporation Tax Return (CT600) is another counterpart, akin to the T2 form. It is used by U.K. companies to report their income, gains, and losses for corporation tax purposes. Similar to the T2, the CT600 requires comprehensive financial details and applies adjustments for tax purposes, reflecting the corporation's tax due or refundable.

Australia’s Company Tax Return form shares similarities with Canada’s T2 form as well. It is used by Australian corporate entities to report their taxable income, calculate their tax liability, and claim tax offsets and credits. Both forms are critical for entities in their respective countries to comply with tax laws and regulations.

In Germany, the Körperschaftsteuererklärung (Corporate Income Tax Return) serves a similar purpose to the T2 form. German corporations use it to declare their income to the tax authorities, including deductions and tax credit claims, ensuring proper tax obligations are met based on the corporation's fiscal performance.

The Japan Corporate Tax Return also parallels the T2 tax form, requiring Japanese corporations to report annual income, expenses, and calculate payable taxes. Similar to the T2, detailed financial statements and various schedules accompany the return, catering to different corporate situations and tax regulation requirements.

India's Income Tax Return - 6 (ITR-6) is used by companies other than those claiming exemption under section 11 (income from property held for charitable purposes). It requires detailed disclosure of income, deductions, and compliance with Minimum Alternate Tax provisions, mirroring the comprehensive nature of the T2 form in reporting and tax calculation.

France’s Déclaration de résultats 2065 and associated annexes serve as the corporate tax return for French corporations, drawing parallels with the T2 form. It encompasses reporting of income, expenses, adjustments, and credits/deductions, ensuring the accurate determination of tax liability under French tax law.

In Brazil, the Declaração de Informações Econômico-Fiscais da Pessoa Jurídica (DIPJ) is used by corporations to declare income and calculate taxes owed. Though Brazil's tax system has its peculiarities, the DIPJ shares the intention of the T2 to garner a complete picture of a corporation’s financial activities and tax responsibilities.

South Africa's Income Tax Return for Companies (ITR14) bears similarities to Canada's T2 form. It is an obligatory declaration for South African corporations, detailing income, deductions, and taxes due, along with supplementary schedules for various taxable income sources and deductions, aligned with South African tax laws.

The Italian Corporate Income Tax Return (Modello Redditi SC) is utilized by companies operating within Italy to report their earnings and compute tax liabilities. Like the T2 form, it includes several sections for declaring different types of income, deductions, and tax credits, tailored to the Italian tax system requirements.

Filling out the Canada T2 Tax form accurately is crucial for every corporation. To ensure the process is smooth and error-free, here are some recommended dos and don'ts:

Do ensure that the corporation's business number, name, and address are current and match the records with Canada Revenue Agency (CRA).
Do carefully review all schedules and attachments to ensure they're completed as required and relevant to your corporation's tax situation.
Do use the General Index of Financial Information (GIFI) when preparing your financial statement information to maintain consistency with CRA requirements.
Do not overlook the deadlines for filing and payments; the return must be filed within six months after the end of the corporation’s tax year.
Do not ignore changes in corporate status, such as acquisitions, amalgamations, or dissolutions, as these can significantly impact your tax obligations.
Do not submit the form without reviewing it for accuracy and completeness to avoid potential errors that could lead to audits or reassessments.

Adhering to these guidelines can help ease the process of filing the T2 Tax form, ensuring compliance and potentially saving your corporation from unnecessary penalties and interest.

Understanding the intricacies of Canada's T2 Tax Form is essential for corporations operating within the country. However, misconceptions often arise about its filing requirements, eligibility, and implications. Here are nine common misconceptions clarified to help navigate the complexities of this important financial document.

Misconception 1: All corporations in Canada must file the same provincial tax forms. In reality, corporations located in Quebec or Alberta are required to file separate provincial corporation returns, emphasizing the need for tailored tax planning in these jurisdictions.
Misconception 2: The T2 Tax Form does not apply to smaller corporations. Contrary to this belief, a shorter version of the return, the T2SHORT, is designed for eligible small corporations, simplifying the filing process while still complying with tax obligations.
Misconception 3: Legislative references on the form are related to provincial or territorial laws. The form actually references the federal Income Tax Act and Income Tax Regulations, consolidating its focus on federal tax obligations.
Misconception 4: Changes to the law are always reflected immediately in the form. Some changes may not have become law at the time of the form's publication, requiring corporations to stay informed about current legislation affecting their tax return.
Misconception 5: Corporations have flexibility in choosing when to file the T2 return. Corporations must file the return within six months after the end of their tax year, underscoring the importance of timely submission to avoid penalties.
Misconception 6: Only financial statement information is required with the T2 return. In addition to financial statements using GIFI schedules, corporations may need to attach various schedules based on their activities and transactions during the fiscal year.
Misconception 7: The T2 form is the same for every corporation regardless of its specifics. The type of corporation at the end of the tax year, such as a Canadian-controlled private corporation (CCPC) or a public corporation, affects the requirements and benefits available, tailoring the filing process to the corporation's characteristics.
Misconception 8: Filing the T2 return is purely a formality without real impact on the corporation. Filing the T2 accurately can significantly affect a corporation's tax liabilities and eligibility for deductions and credits, directly impacting its financial health.
Misconception 9: There's no need to update corporation information if it hasn't changed from the previous year. Always confirming or updating business and mailing addresses, corporation type, and other relevant information ensures compliance and accurate communication with the Canada Revenue Agency.

Addressing these misconceptions is crucial for corporations to fulfill their tax obligations accurately and effectively. Understanding the specific requirements and opportunities available through the T2 Tax Form can lead to better tax planning and potentially significant tax savings.

Understanding the Canada T2 Tax Form is essential for corporations to comply with their tax obligations. Here are six key takeaways to consider:

The T2 form is a comprehensive document used by corporate entities to file their income tax return in Canada, serving both federal and provincial/territorial purposes except in Quebec and Alberta, where separate provincial returns are required.
Corporations located in Quebec or Alberta must remember to file a separate provincial corporation return, in addition to the T2 return for federal taxes.
A shorter version of this form, known as the T2SHORT, is available for eligible corporations, simplifying the tax filing process for those who qualify.
The form and its attachments, including the General Index of Financial Information (GIFI), must be submitted to the designated tax centre within six months following the end of the corporation’s tax year to avoid penalties.
All references on the T2 return are to the federal Income Tax Act and Income Tax Regulations, ensuring legislation governs the information provided on this form.
Changes that may not have become law at the time of publication are sometimes included in the T2 form. It is important for corporations to stay informed about the current tax laws and regulations that might affect their tax obligations.

For additional assistance and detailed information on filling out the T2 tax form, corporations are advised to visit the official website or consult the T2 Corporation – Income Tax Guide. This guidance can provide valuable insights and help ensure compliance with tax filing requirements.

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