Carrying on a business in Canada

• Income tax return filing requirements
• Filing due date
• How to reach us
• For more information...
  • T2 Corporation - Income Tax Guide
  • T2 Corporation Income Tax Return

Income tax return filing requirements

All corporations that carry on business in Canada or dispose of taxable Canadian property have to file a T2 corporate income tax return each tax year, even if no tax is payable. This includes:

• non-profit organizations
• tax exempt corporations
• inactive corporations.

The only exception is for corporations that are a registered charity throughout the year.

A non-resident corporation is subject to Canadian income tax and has to file a T2 return if, at any time in the year or previous year, the corporation carried on business in Canada or disposed of taxable Canadian property.

This applies even if the corporation claims that any profits or gains it realizes are exempt from tax in Canada due to the provisions of a tax treaty.

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Here are some situations in which a non-resident corporation has to file a T2 return:

• to pay tax on taxable income the corporation earns in Canada under section 115 of the Canadian Income Tax Act, including payments for services rendered in Canada for which taxes were withheld under Regulation 105 of the Canadian Income Tax Act
• to pay Part I tax on the net amount of timber royalty income or rental income from real property as an elective income tax return under section 216 of the Canadian Income Tax Act
• as a corporation subject to tax under Part XIV (known as branch tax)
• as a travelling corporation (e.g., musical group) that operates in Canada for a limited period in a tax year.

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Filing due date
The T2 corporate income tax return must be filed no later than six months after the end of each tax year.

• A corporation's tax year is its fiscal period.

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How to reach us
If you have questions about non-resident T2 returns, call the International Tax Services Office at one of the following numbers:

Canada and the U.S.
General enquiries: 1-800-561-7761, ext 9144
Account enquiries: 1-800-561-7761, ext 9155

Outside Canada and the U.S. (collect calls accepted)
(613) 954-9681

Ottawa area
954-9681

Fax number
(613) 952-3845

Regular hours of service
Monday to Friday (except holidays)
8:15 a.m. to 5 p.m. (Eastern Time)

You may write to the International Tax Services Office at:

2204 Walkley Road
Ottawa, Ontario
Canada
K1A 1A8