T2 corporate tax returns for Ontario small businesses

Yes. With very limited exceptions, every resident corporation in Canada must file a T2 return for each tax year, even if it had no income, no tax payable or was inactive.

The return is due within six months after the end of your corporation's tax year. Any tax owing is generally due two months after year-end, or three months for some Canadian-controlled private corporations that qualify for the small business deduction.

No. Ontario corporate income tax is administered by the CRA and reported on schedules filed with your T2 return.

The small business deduction lets Canadian-controlled private corporations pay a reduced rate of tax on their first $500,000 of active business income. Eligibility depends on factors such as ownership and associated corporations.

Your T2 must include your corporation's financial information, reported using the General Index of Financial Information (GIFI). The CRA does not require statements compiled by a CPA, but many corporations choose to have compiled financial statements prepared, and lenders or shareholders may ask for them.