There are different types of corporations for tax purposes, and you have to select the one that accurately describes your corporation type at the end of the tax year. The corporation type determines whether or not the corporation is entitled to certain rates and deductions. Make sure you know which type applies to you.
A change of corporation type may result in significant tax consequences. For example, certain calculations on the return depend on whether the corporation was a private corporation or a Canadian-controlled private corporation (CCPC) throughout the tax year, at any time in the tax year, or at the end of the tax year.
For your corporation to be considered a CCPC, it has to meet all of the following requirements at the end of the tax year:
To be considered an other private corporation, the corporation has to meet all of the following requirements at the end of the tax year:
Your corporation is a public corporation if it is resident in Canada and meets either of the following requirements at the end of the tax year:
If a public corporation has complied with certain prescribed conditions under Regulation 4800(2), it can elect, or the Minister of National Revenue can designate it, not to be a public corporation.
If your corporation is a Canadian subsidiary of a public corporation, it does not qualify as a public corporation for the purpose of determining the type of corporation when completing your T2 Corporation Income Tax Return.
This is a corporation which is not a:
Examples include credit unions, cooperative corporations, general insurers and Crown corporations.
All resident corporations, except registered charities, have to file a corporation income tax (T2) return every tax year even if there is no tax payable. This includes:
Non-resident corporations have to file a T2 return in certain situations.
We print two different returns:
| Who has to file a corporation income tax (T2) return T2 return filing requirements for resident and non-resident corporations. |
Determining your corporation's tax year Rules for determining and changing your corporation's tax year. |
| When to file your corporation income tax (T2) return T2 return filing deadlines and what may happen if you file late. |
Getting a corporation income tax (T2) return Different ways to get a return. |
| Completing your corporation income tax (T2) return Preparation and filing methods for your T2 return, and what to file with each method. |
Where to send your corporation income tax (T2) return Mailing addresses for residents and non-residents. |
An eligible dividend is any taxable dividend paid after 2005 to a resident of Canada by a Canadian corporation that is designated by that corporation to be an eligible dividend. A corporation's capacity to pay eligible dividends depends mostly on its status.
