When are Corporate Tax Returns and Payments Due

Key Corporate Tax Dates

As a business owner, filing taxes may be the least exciting aspect of running your business.  However, sometimes understanding the basics of the process and having a skilled professional by your side helps you get through the filings. There are various dues dates that impact your business which are important to keep track of to avoid late filing penalties and interest.  This post will highlight some of the key points to track and stay on top of for your corporate taxes.

1) Corporate Tax Payment

The Corporate tax payment is due 2 months after the year end.  For example, if the corporation has a December 31, 2015 year end, the 2015 corporate taxes are due end of February 2016.  Generally, tax professionals provide a tax estimate so that companies can make their payment on time and avoid late payment interest and penalties from the CRA.

2) Corporate Tax Return

The corporate tax return is due 6 months from the fiscal year end. For example, if the corporation has a December 31, 2015 year end, the corporate tax return will be due June 2016.

3) Corporate Tax Instalments

If your corporation owes more than $3,000 in taxes, the company has an obligation to pay tax instalments.  Your tax professional would normally calculate the instalment payments for the following taxation year end when you prepare the current year tax returns.  Instalment payments are payable and due either monthly or quarterly based on your business.

4) HST Return

HST Return and the tax payment is due 3 months after the year end.  For example, if the corporation has a December 31, 2015 year end, the HST return and payment is due March 31, 2016.

5) HST Instalments

If you are an annual HST filer, and your net tax is over $3,000 then HST instalment payments would need to made quarterly.   The instalment payment is due one month after the end of the corporation’s fiscal quarter.  For example, for a December 31 year end, the fiscal quarters will end in March, June, September, and December.  The HST payment is due within one month from that quarter (i.e., for the March quarter the payment due date will be end of April)

6) T5 & T4 Summary for Dividends and Salaries

A corporation will need to report the dividends and salaries paid to shareholders and employees to the CRA.  The due dates for these filings are always end of February no matter what the fiscal year end is as the reporting followings a calendar year end.  

As a final note, generally the CRA extends the due date when the due date falls during the weekend.  So be aware of what day the due date falls upon.

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