- Who issues my corporate tax refund cheque?
- How long will it take to process my Ontario corporate tax credit claim?
- How do I make an Ontario corporate tax voluntary disclosure?
- What do I do if I disagree with the Canada Revenue Agency’s decision about my objection?
- What should I do if I am not satisfied with the service I have received from the Canada Revenue Agency after exhausting normal complaint channels?
Corporations Tax
Generally, corporations carrying on business through a permanent establishment in Ontario are liable for both federal and Ontario corporate taxes.
2015 Budget Change for Resource Corporations
Ontario Resource Tax Credit and the Additional Tax on Crown Royalties
The province is harmonizing with the federal government and other provinces by eliminating the Ontario Resource Tax Credit and the Additional Tax on Crown Royalties. Effective April 23, 2015, Ontario will provide a deduction for royalties and mining taxes paid.
Accrued but unused Ontario Resource Tax Credit amounts will be eligible for carry-forward to offset Ontario income tax payable in the first five taxation years beginning after April 23, 2015.
Who is liable for Ontario corporate tax?
Generally, incorporated businesses that have a permanent establishment in Ontario are liable for Ontario corporate tax. A permanent establishment is generally a fixed place of business such as an office, farm, factory, branch, warehouse, etc.
Unincorporated businesses are not liable for Ontario corporate tax. These include sole proprietorships and businesses run by individuals as partnerships. Owners of unincorporated businesses are however, liable for personal income tax on an individual basis.
Business registration
ServiceOntario registers business names, incorporates businesses and licenses foreign extra-provincial corporations in Ontario.
You may also want to:
- incorporate your business under Ontario laws
- operate in Ontario, if you are incorporated outside Ontario
- dissolve or revive your corporation
- incorporate your business under the laws of Canada.
Ontario corporation number and Ontario corporations tax account number
The Ontario corporation number is issued by the Ontario Ministry of Government and Consumer Services. This number is required to file your Corporations Information Act annual return. For tax years ending on or after January 1, 2009, Ontario corporations and foreign business corporations licensed to carry on business in Ontario may file this annual return with the Canada Revenue Agency.
More about the Ontario Ministry of Government and Consumer Services annual return
In most cases the Ontario corporations tax account number is automatically generated after the information is received from the Ontario Ministry of Government and Consumer Services. Please contact the Canada Revenue Agency for questions on your Ontario corporations tax account number.
Federal business number
The federal business number is issued by the Canada Revenue Agency. This number is required to file your T2 corporation income tax return (T2 return) with the Canada Revenue Agency.
Read on: the business number and your Canada Revenue Agency accounts
Changing jurisdiction
If you want to continue your Ontario corporation in another jurisdiction, you need to first ask the ministry for a consent to continue letter. To do this, fax a written request to 905 433-5418.
The ministry will review your request and check that your corporation:
- is in full compliance with Ontario tax statutes,
- is not currently under audit, and
- has no outstanding notice of objection.
Once approved, you should receive the consent to continue letter. Send the letter to the Ontario Ministry of Government and Consumer Services’ Companies, Personal Property Security Branch along with other information as required by the Ontario Ministry of Government and Consumer Services.
More about changing your corporation’s jurisdiction
Filing a corporate tax return
For tax years ending on or after January 1, 2009, you will file one harmonized T2 return including all the Ontario schedules with the Canada Revenue Agency.
Generally, every corporation carrying on business in Ontario through a permanent establishment must file the T2 return with the Canada Revenue Agency no later than six months after the end of the tax year. The T2 return and applicable schedules would include the following Ontario corporation taxes: corporate income tax, including refundable tax credits, corporate minimum tax and the special additional tax on life insurance corporations.
More about the T2 corporation income tax return
Where to send your return
For tax years ending on or after January 1, 2009, you will file one harmonized T2 return including all the Ontario schedules with the Canada Revenue Agency.
Adjustments
For tax years ending on or after January 1, 2009, send your adjustment request or amended return to the Canada Revenue Agency.
How to request a reassessment of your T2 return
For tax years ending on or after January 1, 2009, make your corporate tax payments to the Canada Revenue Agency.
More about payments to the Canada Revenue Agency
Instalments
You may be required to make instalment payments, which are partial payments of the total amount of tax payable for the year. The balance of tax, which is the tax payable for the tax year after you have deducted the instalments already made for the year, is paid on your balance due date, which is generally three months after the end of the tax year for a Canadian-controlled private corporation or two months after the end of the tax year for a non Canadian‑controlled private corporation.
Assessments
For tax years ending on or after January 1, 2009, the Canada Revenue Agency processes all T2 returns (these returns include necessary Ontario schedules). The Canada Revenue Agency conducts the audit reviews and sends out all assessments and reassessments.
Corporate tax reassessment period
For tax years ending on or after January 1, 2009, the normal reassessment period is as follows:
- For a Canadian-controlled private corporation, it is the period that ends three years after the mailing date of the original notice of assessment.
- For a non‑Canadian‑controlled private corporation, it is the period that ends four years after the mailing date of the original notice of assessment.
More about reassessments for tax years ending on or after January 1, 2009
For tax years ending on or after January 1, 2009, you can file an objection with the Canada Revenue Agency within 90 days of the day the Canada Revenue Agency sent the notice of (re)assessment.
Download form T400A, Objection – Income Tax Act from the Canada Revenue Agency
Administration
The Canada Revenue Agency administers Ontario's corporate income tax, corporate minimum tax and the special additional tax on life insurers.
Questions
Contact the Canada Revenue Agency with your questions about Ontario corporate tax at 1 800 959‑5525 or 1 800 665-0354 for teletypewriter (TTY).
Advance tax rulings or technical interpretations
Requests for advance tax rulings or technical interpretations should be sent to the Canada Revenue Agency.
