Tax filing can be one of the most intimidating tasks for many business owners. After all, you need to file corporate taxes in the right way and on the right deadline. Any mistake could lead to serious financial and other consequences.
The secret is to have the right information on what you need to file corporate taxes in Canada. Here is everything you need to know about filing corporate taxes that will help you get started.
Is There A Need To File Corporate Taxes?
Keep in mind that if you are self-employed, there is no reason to file tax returns. However, if you have a business and you want to claim certain benefits, then you can file corporate taxes. That is because filing the tax return will help you claim the following:
- Pension plan or EI
- Tax refunds
- Provincial tax benefits
- And much more
You can reap all of these benefits once you file corporate taxes in Canada. It will help you create a contribution room in the RRSP.
The Deadline For Incorporated Business Tax
You have to meet the deadline for the corporate tax if you want to reap maximum benefits from it. Keep in mind that the deadlines will vary depending on the structure of your business. On the other hand, you will also have to pay on time to avoid any problems.
As a general rule of thumb, your corporate tax return (T2) is due six months after the company’s fiscal year-end. Here are some exceptions to this general rule, depending on your income and eligibility criteria. It is crucial that you read up on this information before you file taxes.
What To Deduct From Your Corporate Taxes
There are also some things that you can easily deduct from your corporate tax returns. These deductions are there to help you bring the tax bill lower. Here are some deductions you can make:
- Vehicle expense
- Office expense
- Advertising expenses
- Entertainment and meals
- And more
If you are from the agriculture sector, you can also deduct a lot of things, such as levelling and clearing. Just make sure that you see the regulations, depending on the industry you belong to.
Hire A Professional
It can be challenging to keep up to date with all of this information. This is why you should always leave it to the professionals to file corporate taxes in Canada. They will make sure to follow each rule and deadline.
Besides that, you will not have to worry about a thing, as you can focus on running your business. If you want to avoid making mistakes, the best course of action is to hire an accountant.
This is all the information you will need to file corporate taxes in Canada without any issues. Our recommendation would be to hire a professional who has knowledge and expertise. It will make the process much easier without any financial or other consequences that you might have had to bear as a result of mistakes made otherwise.