when to file Tax return new corporation
- Thread starter Clorets90
- Start date
When you incorporate , you’ll have the date of incorporating. The birthday per se
From that date you’ll have to pick a year end for the corporation that is less than 371 days from that date .
Example you’re date of incorporating is
June 30. You pick Dec 31 as your year end
You have six months from December 31 to file your T2
HOWEVER any balance owing is due either 2 or 3 months after your year end, dependant whether or not your a CCPC
(Canadian Controlled Private Corporation)
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/when-file-your-corporation-income-tax-return/determining-your-corporation-s-tax-year.html
Chose your fiscal year wisely , you are not allowed to change it , unless you have sound business reasons , and the CRA has to approve the change
Note, saying the date set isn’t convenient, isn’t a sound business reason
The fiscal year end date settings are the same if its federally incorporated or provincially
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Many corporations chose Dec 31 as their FYE, so then there filing deadline is June 30. Six months after 12/31
Thank you very much now I understand that small businesses are corporations that chose to file their return on Dec 31 so they have time till end of June!.
Once incorporate (very easy to do by myself) I can't see the option to choose the fiscal year kindly could you please add some details here about it?
Thank you very much.
You chose the fiscal year end when you file your first T2. On the T2 jacket there’s a section that asks is this your first filing since incorporating? You say Yes
Then you attach I believe a Schedule 24, indicating your FYE
So this schedule 24 will be needed next year (end of my company fiscal year) correct?
For now just incorporate and go ahead with selling!
Yes, the Schedule 24 is only used when you file the T2. It’ll actually say it on the T2 that you are required to fill out and attach
I do have a bit of confusion if possible, please comment
I will incorporate Federally on June 1st, 2020 so the (Corporate fiscal year-end for income tax purposes) would be (I will choose) December 31 when filing T2.
I will also get RC BN since it is Federal Corporation.
I want to register for GST/HST Vulateerly in order to collect tax from the customers then but in this case, as I watched many videos/ Guides also asks for fiscal year-end now my question is (is this fiscal end year is for GST/HST OR for Corporate Income Tax?) Please, see the attached below.
see photo: https://ibb.co/NKTZSmf
Corporate Income Tax T2 Filing from CRA website says:
Example
A corporation was incorporated May 18, 2019. It chose October 9 as its tax year-end. Its first tax year will be from May 18, 2019 to October 9, 2019. Its second tax year will be from October 10, 2019 to October 9, 2020.
Reference
Another information from CRA which I do not get it clear:
A corporation generally uses the same fiscal year for both income tax purposes and GST/HST purposes. However, if a corporation has a non-calendar tax year for income tax purposes, it can elect to use a calendar year for its GST/HST fiscal year.
Reference:
My goal is this at the end ( File GST/HST AND T2 Corporate return and Family income altogether one time sometime between January 1st - April 30)
Thank you very much I would be very grateful if you can explain this.