Guide to Filing Your Corporate Tax in Canada

If you have a Canadian corporation, you need to know the steps for filing your corporate tax. The CRA requires corporations with annual gross revenues over $1 million file electronically. However, they also like to make exceptions. Corporations in Canada pay their tax in quarterly or monthly installments. If you are a new corporation, you may not have to make installments at all.

Form RC4649

If you run a company or business, then you need to know about the requirements for filing your corporate tax in Canada. You must file your corporate tax if you have a gross revenue of $1 million or more. You should keep records of your business activity for 6 years so that the CRA can verify the information you have provided. Even if you are operating a loss-making business, you still need to file your corporate tax return.

If you have a small business, you may be eligible for the small business deduction, which can reduce your corporate tax to 10.5%. However, the business deduction has a cap of $500,000 and does not apply to all businesses. In case you are not sure whether or not you qualify for this deduction, you can use a CRA worksheet to get an estimate. However, you may want to hire a CPA to get an accurate assessment. When you should file your corporate tax will depend on the fiscal year and the amount of income you have.

The deadline for filing your corporate tax in Canada is six months after the end of your financial year. This means that corporations with a December 31st year end must file their corporate income tax return by June 30th. On the other hand, companies with a May 31st year end have until November 30th to file their returns. In addition, corporations may be eligible for a tax credit for research and development (R&D).

In addition to R&D tax credits, you can also claim certain expenses, such as employee wages, in order to lower your tax burden. In some parts of Canada, you can also claim tax credits for hiring apprentices or creating child care spaces. Another good option for corporations is the Small Business Deduction. This deduction applies to privately-owned corporations in Canada.

If you are working from home, remember to keep track of all the information related to the business use of your home. These details will come in handy when you file your corporate tax returns. Moreover, you should file your corporate tax return online if your gross revenue is more than $1 million.

RC4649 Stated capital account

The RC4649 form must be filed by a Canadian corporation with the CRA if the company is located in Canada. It is an electronic filing form. This form is also called the country-by-country report (CbCR) and is required by corporations with consolidated revenues of EUR750 million or more. However, partnerships and trusts cannot file in this format and must submit their CbCR in paper format. The Canadian government’s guide provides helpful information and guidelines for filing this report electronically.

If you have an electronic filing program, you can use this application to electronically file Form RC4649. However, if you use a prior version, you should note that the information you entered on the lines will not be retained. The program will also require you to use a Web Access Code (WAC) in order to file the Form RC4649.

When filing corporate tax in Canada, the corporation must declare its “paid-up capital”. Paid-up capital represents the amount that a shareholder has paid in exchange for shares of stock. The corporation can then return this amount to shareholders tax-free. The state capital account is also used to report a stock dividend – a payment of additional shares of stock.

The column will show the amount allocated to the corporation. This amount is calculated from the information you provided on column L. If the column is blank, the program will not calculate this amount. If you have a line with the same amount as the previous one, it means that you allocated a certain amount to each of the accounts. In this case, the amount allocated to the company will equal the amount of the account on line 2E on the Schedule 8.

If you are a large corporation and employ $10 million or more in the Canadian capital, you may need to file a Schedule 305. This is the capital tax for financial institutions in Newfoundland and Labrador.