Not every corporation is a large-scale global entity. At Ghumans, we work closely with small businesses, offering corporate tax services that help you increase profits and make smart financial choices that will positively influence your tax outcomes.

Even if your small business taxes seem straightforward, we uncover deductions and tax credits that you may have overlooked. With our thorough understanding of small business operations, we identify relevant expenses and deductions, offering advisory services for tax planning and compensation strategies, ensuring you maximize the returns from your hard work.

Planning for corporate income tax is a critical responsibility of a corporate tax accountant. Effective tax planning requires a long-term outlook. By strategically managing various transactions, it’s possible to significantly reduce the corporate tax burden. At Ghumans, our team is skilled in helping you take full advantage of available tax credits and expense deductions, allowing you to keep more of your hard-earned money.

We also offer tax planning and services to shareholders, assisting in planning both corporate and personal income taxes ahead of time to minimize the overall tax burden.

Our team has extensive expertise in corporate income tax filing. Let us manage your tax preparation and experience firsthand the impact our expertise can have on your tax return.

The cost of corporate tax preparation and filing depends on various factors, such as the size of the company, revenue, structure, and other relevant data. For smaller corporations, filing fees typically start in the low hundreds, while larger multinational corporations may see costs reaching into the thousands.

Our corporate tax experts ensure that all deadlines are met and that regulations are followed, helping you avoid penalties and interest, which can often be higher than the cost of hiring a professional.

With Ghumans, you can rest easy knowing your corporate tax obligations are handled by experienced professionals.

Frequently Asked Questions

What are corporate taxes?

Corporate taxes are a tax imposed on a company’s profits, which must be paid to the government.

How does corporate tax work in Canada?

In Canada, corporations (T2s) are required to file their taxes annually. This applies to all registered corporations, whether resident or non-resident, including inactive, tax-exempt, and nonprofit corporations.

Corporations must file their returns no later than six months after the fiscal year ends. It’s essential to meet the filing deadline to ensure any taxes owed are paid to the government on time.

What is the corporate tax rate in Canada?

For Part I tax, the rate starts at 38% of taxable income, which is reduced to 28% after federal tax abatements. Following additional general tax reductions, the effective net tax rate becomes 15%.

For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 9%, as of January 1, 2019. You can consult the Government of Canada’s official resources for current corporate tax rates and possible reductions.

How can I determine my corporate tax in Canada?

Corporate tax rates vary yearly. For precise estimates, it’s best to speak to one of our tax consultants, who can provide tailored information for your business.

How long should I keep corporate tax records in Canada?

It is recommended that Canadians keep their corporate tax records for a period of six years after the relevant tax year ends. For example, if you filed for 2016, retain those records until December 31, 2022.

How do I file corporate taxes?

Corporations with an annual gross revenue exceeding $1 million are required to electronically file their T2 tax returns. There are a few exceptions, but failure to file electronically can result in a $1,000 penalty.

How do I pay corporate taxes?

Most businesses must pay their corporate taxes through installments. These payments are typically due on the last day of each month following your tax year. You can make these payments online through the CRA’s My Business Account, via your bank, or by mailing a cheque.

How can I lower corporate income tax in Canada?

Canadian corporations have two primary ways to reduce their corporate income taxes: (1) Earning tax credits by following specific regulations, or (2) Making use of tax deductions for expenses such as business and travel.

The government maintains a comprehensive list of available tax credits and deductions. It is advisable to consult with a corporate tax accountant to ensure you’re taking advantage of all eligible credits and deductions. They can also provide guidance on using these in future tax years to minimize your tax obligations.