Canadian corporations are required to file corporate income tax (T2 return) every tax year even if their earning is nil, or no taxes are payable. This includes
- inactive corporations
- non-profit organizations and
- tax-exempt corporations
Most corporations can file their return electronically (efile) or in paper format. Corporations with annual gross revenue exceeding $1 million are mandated to file electronically. For these corporations paper filing is not allowed.
New corporations in their first year often make the mistake of incorrectly choosing the Year-End reporting period. Only an expert can help you decide the right period saving you maximum taxes. Even nil return is not as simple as it looks! We strongly recommend to consult with us before you file nil return. We can help you benefit in future tax years.