A Head Start on Corporate Tax Filing: What to Organize Before Year-End

October 28, 2025

Getting ahead of your corporate tax filing helps avoid surprises, smooth cash-flow and make the most of deductions and credits. For businesses in Canada, now is the time to build a plan that can withstand review and protect value.

Know the deadlines and the shift to electronic filing

All corporations in Canada must file a T2 corporation income tax return, even if they owe nothing. The deadline depends on your fiscal year-end: typically, six months after year-end for the filing and two months after year-end for any balance due [1]. For certain Canadian-Controlled Private Corporations, the payment deadline is extended to three months after the taxation year-end. The CRA now requires electronic filing for virtually all corporations except certain insurers and non-resident corporations [1]. Business owners should confirm their software, CRA portal access and internal calendar early. Delays or missing filings can trigger penalties and loss of tax credits.

Be aware of the GST/HST return obligations

Corporate tax does not stand alone. GST/HST return cycles tie directly into year-end closing. Monthly and quarterly GST/HST filers must submit within one month of period-end, while annual filers have separate instalments remittance rules even though they are only required to file the return on an annual basis [2]. The taxpayers need to be careful that the filing frequency could change during the year once the taxable supply amount exceeds certain threshold. That being said, it is critical for monthly and quarterly filers to carefully review the filing frequency throughout the year to avoid unexpected changes.

Similar to the corporate income tax return filings, the tax authority now requires all the GST/HST returns to be filed electronically. Failing to do so could be subject to penalties and interest as well.

Align payroll and information-return obligations

For payroll, owners should review headcount, contractor arrangements, shareholder benefits and taxable allowances before year-end to ensure slips such as T4s are complete. The CRA requires electronic filing of slips when more than five of the same type are filed in a year [3]. Planning these inputs before crunch time allows corrections and accruals to be handled calmly.

Review debt financing and interest-deduction limits

If your company uses debt, the “excessive interest and financing expenses limitation” (EIFEL) rules and thin capitalization rules can restrict how much net interest is deductible [4]. Assess debt levels, interest incurred and the carry-forward mechanics ahead of year-end so you can model the impact on tax payable.

If your enterprise is part of a large multinational group, the global minimum tax regime under the Global Minimum Tax Act applies to fiscal years beginning on or after December 31, 2023 [5]. Data-collection, internal controls and potential incremental tax exposure benefit from early assessment.

Time capital-asset purchases and CCA strategically

Capital cost allowance (CCA) deductions depend on when property becomes available for use, which class it falls into and half-year rules [6]. The federal accelerated investment incentive allows enhanced first-year CCA for eligible property available for use before 2028 [6].

Owners should review planned capital spending now. Accelerating a purchase into the current year may unlock more first-year CCA but only if the asset is available for use and cash-flow can support it.

Manage payments to non-resident recipients

If a company made payments to non-residents of Canada, the part XIII non-resident withholding tax may come into play. Typical types of payments that fall under the withholding tax regime include dividend, interest, rent, royalty, and management fees. Note that the remittance of withholding tax is due by the 15th of the following month in which the payment is made or credited to the non-residents. That being said, the upcoming January 15th would be the last payment due date to cover any payment obligations arise in 2025 [7].

Other than the withholding and remittance obligations, the payees are also required to disclose the payment amount, payment type and withholding amount to the tax authority by filing NR4 form and slips. This is generally due by March 31st for corporate taxpayers.

Business owners should review the tax residency of recipients to ensure the withholding tax obligations are met.

Do not leave SR&ED to year-end

If your corporation performs research and development, you may be eligible for the federal Scientific Research & Experimental Development Tax Incentive Program (SR&ED) [8]. Eligibility turns on technical uncertainty and evidence. Maintaining contemporaneous documentation of experiments, expenditures and staff involvement throughout the year reduces the risk of denial or delay. The CRA publishes guidance for both claimants and reviewers [8].

Clean the books, support related-party transactions and retain records

The CRA expects corporations to keep books and records for six years from the end of the tax year they relate to. Destroying records earlier requires written permission [9].

Additionally, certain foreign information returns, such as T1134, T1135 and T106, are due at the same time or a few months after the corporate income tax return. It is always good to be prepared ahead of time to gather the information with related non-residents.

Before year-end, reconcile bank accounts, sub-ledgers, inventory counts, intercompany balances and shareholder loans. Confirm that minute books, approvals and related-party support exist to defend the tax position if the CRA requests evidence.

Remit correctly to avoid penalties

Late filings missed instalments, or incorrect remittances can trigger penalties and interest, which are not deductible [10]. The CRA highlights electronic filing for many returns and stresses that non-compliance carries cost [10].

Set up electronic payment rails in advance. Define who tracks deadlines, who approves submissions and how exceptions are escalated.

A practical pre-season checklist

Confirm access to file T2 electronically and validate software and CRA portal credentials [1]
Map instalment due dates and confirm the balance-due day on your fiscal year [1]
Review GST/HST filing frequency and align cash-flow planning [2]
Prepare payroll and information returns and plan for e-filing if above five slips [3]
Model EIFEL interest limits and assess large-group Global Minimum Tax exposure [4][5]
Time capital purchases against available-for-use rules and accelerated CCA [6]
Review the tax residency of payment recipients and ensure the withholding tax obligations are met [7]
Maintain live SR&ED files with technical evidence and expenditure reconciliation [8]
Reconcile books, intercompany, shareholder loans and support related-party terms
Enforce six-year record retention or request permission for early destruction [9]
Set up electronic remittance and internal deadline controls to prevent penalties [10]

Planning early makes corporate tax season more predictable and less reactive. If you want a structured filing calendar or a pre-season readiness review tailored to your company, connect with your advisor before year-end while planning options are still open.

Footnotes:

A Head Start on Corporate Tax Filing: What to Organize Before Year-End

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