Corporate tax

Corporate tax and year-end, planned ahead.

T2 returns and year-end for owner-managed and professional corporations across BC.

What's included

What's included.

T2 corporate return

Federal and BC corporate returns prepared and reviewed by a CPA.

Year-end financial statements

Compilation or review engagements, depending on what your lender or shareholders need.

Salary and dividend slips

T4 and T5 slips for what you paid yourself and your shareholders.

GST/HST

Regular returns and year-end reconciliation.

Year-end planning

Bonuses, dividends, purchases and timing reviewed before your fiscal year closes, not after.

Holding companies

Holding and operating company structures, dividends between related companies, and passive investment income.

Deadlines

Key dates.

6 months after year-end
T2 return due.
2 to 3 months after year-end
Balance of tax due. Many Canadian-controlled private corporations get three months.

Guide

How corporate tax works for BC companies.

Your corporate year-end is the one time each year when the numbers are finalized, the tax is calculated and the planning for next year begins.

Rates at a glance

  • About 11% combined on the first $500,000 of active business income for a Canadian-controlled private corporation
  • About 27% combined on active business income above that
  • Higher rates on passive investment income, partly refundable when dividends are paid

What happens at year-end

  • We reconcile your books and post adjusting entries
  • We prepare your financial statements, usually as a compilation engagement
  • We prepare the T2 return, including BC schedules
  • We review salary, dividends and slips with you before they're finalized
Plan before year-end, not after

Most of the planning opportunities, such as bonuses, dividends, equipment purchases and the timing of expenses, have to happen before your fiscal year ends. We aim to meet two to three months before your year-end.

Instalments

Corporations that owe more than $3,000 in tax generally pay monthly instalments. Many small Canadian-controlled private corporations can pay quarterly instead. Missing instalments leads to interest.

Deadlines

  • T2 return: six months after year-end
  • Balance of tax owing: two months after year-end, or three months for many small Canadian-controlled private corporations
  • T4 and T5 slips: end of February for the prior calendar year

Have a question about your situation?

Book a call

Working with us

In person in Vancouver, or by video from anywhere in BC.

01

Start with a short call

We learn what you need and give you a quote upfront.

02

Connect securely

You authorize us with the CRA and share documents through our secure client portal.

03

We do the work

Your file is prepared and reviewed by a CPA, with questions sent as they come up.

04

Review together

We walk you through the results by phone, video, at our office or wherever suits you.

Questions

Common questions.

Our books are kept by someone else. Can you prepare only the T2?

Yes. If your books are complete, we can prepare the T2 return from your financial statements or trial balance.

When should we talk about year-end planning?

Two to three months before your fiscal year-end, so there's still time to act on it.

Do you work with holding companies?

Yes, including holding companies that own operating companies, and corporations that mainly hold investments.

Do I need financial statements with my T2?

Yes. The T2 includes financial information, which we prepare from your year-end statements.

Can I change my company's year-end?

Sometimes, with CRA approval. We can discuss whether it's worth doing.

Ready to hand it off?