T2 Filing and Payment Deadline in Canada
Including corporate tax instalments, Quebec CO-17 and Alberta AT1 considerations
In Canada, corporations must pay close attention to two separate deadlines: the deadline to file the corporate income tax return and the deadline to pay the corporate income tax balance. These deadlines are not the same. In addition, many corporations must pay tax instalments during the year, before the final tax balance is known.
This article explains the federal T2 filing deadline, corporate tax payment deadlines, corporate instalment requirements, and the special provincial filing and payment rules that apply in Quebec and Alberta. For a broader overview of corporate filing obligations, see this guide to corporate tax returns in Canada.
When is the T2 filing deadline in Canada?
In Canada, every corporation must generally file a T2 Corporation Income Tax Return within six months after the end of its fiscal year.
Unlike personal tax returns, corporations do not all have the same year-end. A corporation’s T2 filing deadline depends on its own fiscal year-end. If you need a basic explanation of the return itself, see what a T2 corporate tax return is.
| Corporate fiscal year-end | T2 filing deadline |
|---|---|
| December 31 | June 30 |
| March 31 | September 30 |
| June 30 | December 31 |
| August 31 | February 28 or 29 |
| September 23 | March 23 |
If the filing deadline falls on a Saturday, Sunday or public holiday recognized by the CRA, the return is generally considered filed on time if it is received or postmarked by the next business day.
Filing deadline vs. payment deadline: they are not the same
A common mistake is assuming that the corporate tax payment is due at the same time as the T2 return. In most cases, this is not correct.
- The T2 filing deadline is generally six months after the corporation’s fiscal year-end.
- The corporate income tax balance is generally due two months after the fiscal year-end.
- Certain qualifying Canadian-controlled private corporations (CCPCs) may have a three-month balance-due deadline.
For example, a corporation with a December 31 year-end may have a federal corporate tax payment deadline of February 28 or 29, or March 31 if it qualifies for the three-month CCPC rule, while the T2 return itself is due on June 30.
Which corporations may qualify for the three-month payment deadline?
Certain CCPCs may have until three months after year-end to pay their corporate income tax balance. In general, this may apply where the corporation was a CCPC throughout the year, claimed the small business deduction for the current or previous year, and meets the applicable taxable income and business limit conditions, including associated corporation rules where relevant.
Because the three-month rule depends on specific tax conditions, corporations should not assume they qualify automatically. If the corporation does not qualify, the balance is generally due two months after year-end.
Corporate instalments: when do they start being required?
Corporate tax instalments are partial payments made during the year toward the corporation’s expected tax payable. They are separate from the final balance due after year-end.
At the federal level, corporations are generally required to pay tax by instalments unless an exception applies. One important exception is the first taxation year after incorporation: most corporations do not have to make instalment payments in their first tax year, but any balance owing must still be paid by the balance-due day.
A corporation may also be exempt from federal instalments where the tax payable for the current year or the previous year is $3,000 or less. For many growing corporations, this means instalments commonly begin in the second tax year, once the corporation had tax payable above the threshold in a prior year.
Federal CRA instalments
At the CRA level, instalments generally cover federal Part I corporate income tax and, for provinces and territories other than Quebec and Alberta, the provincial or territorial corporate income tax administered through the federal T2 system.
This is important: if a corporation operates only in provinces such as Ontario, British Columbia, Manitoba, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, or the territories, corporate income tax instalments are generally paid to the CRA as part of the federal corporate tax payment process.
CRA instalments are generally paid monthly. However, certain eligible small CCPCs may be allowed to pay quarterly instalments instead of monthly instalments.
| CRA instalment topic | General rule |
|---|---|
| When instalments may start | Generally after the first tax year, if the corporation is no longer exempt and tax payable exceeds the applicable threshold. |
| Threshold | Generally not required if tax payable for the current or previous year is $3,000 or less. |
| Frequency | Monthly, unless the corporation qualifies for quarterly instalments. |
| Monthly due dates | One month less a day from the start of the tax year, then the same day of each following month. |
| Quarterly due dates | One quarter less a day from the start of the tax year, then the same day of each following quarter. |
| Payment methods | Through CRA My Business Account, Represent a Client, pre-authorized debit, online banking, third-party service provider, or remittance voucher where applicable. |
For a calendar-year corporation paying monthly instalments, the instalments are generally due on the last day of each month. If the corporation is eligible to pay quarterly, the instalments are generally due March 31, June 30, September 30 and December 31.
Quebec corporate instalments: Revenu Quebec
Quebec is different because Quebec administers its own provincial corporate income tax. A corporation with an establishment in Quebec generally files both a federal T2 with the CRA and a Quebec CO-17 with Revenu Quebec.
As a result, Quebec corporations may need to make instalment payments separately to Revenu Quebec, in addition to any instalments payable to the CRA. Revenu Quebec uses form CO-1027 for corporations required to pay instalments and form CO-1027.VE to report instalments made and the balance paid with the CO-17 return.
The Quebec corporate income tax balance is generally due within two months after year-end. Corporations should not wait until the CO-17 filing deadline, which is generally six months after year-end, to determine whether a Quebec balance or instalment interest may apply.
| Quebec instalment topic | General rule |
|---|---|
| Who may need to pay | Corporations required to pay Quebec corporate income tax instalments, generally where Quebec tax is payable and the corporation is not exempt. |
| Separate authority | Payments are made to Revenu Quebec, separately from CRA payments. |
| Forms | CO-1027 is used to calculate instalments; CO-1027.VE is enclosed with the CO-17 where instalments were made. |
| Payment methods | Online through participating financial institutions or payment service providers, pre-authorized debit where available, financial institution/ATM where available, or by mail with the required remittance slip. |
| Electronic payment requirement | Payments over $10,000 generally must be made electronically, unless electronic payment is impossible due to special circumstances. |
From a practical compliance perspective, Quebec corporations should track federal CRA instalments and Revenu Quebec instalments separately. A payment made to CRA does not settle the Quebec corporate tax account, and a payment made to Revenu Quebec does not settle the federal corporate tax account.
Alberta corporate instalments: Alberta Tax and Revenue Administration
Alberta is also different because Alberta administers its own provincial corporate income tax. A corporation with a permanent establishment in Alberta generally files both a federal T2 with the CRA and an Alberta AT1 corporate income tax return with Alberta Tax and Revenue Administration.
In general, Alberta corporate income tax must be paid in equal monthly instalments on or before the last day of each month in the taxation year, with any remaining balance due by the end of the second month after year-end.
Alberta provides specific exemptions. For example, a qualifying CCPC may be exempt from making Alberta instalments during the year and may be allowed to defer its total Alberta tax payment to the end of the third month after year-end if it meets Alberta’s small business deduction/taxable income criteria or if its Alberta tax payable/current year or first instalment base is $2,000 or less. Other corporations may be exempt from Alberta instalments where Alberta tax for the year or the first instalment base is $2,000 or less. A new corporation, other than one formed by amalgamation, is generally not required to make Alberta instalments during its first taxation year.
| Alberta instalment topic | General rule |
|---|---|
| Who may need to pay | Corporations with a permanent establishment in Alberta and Alberta corporate income tax payable. |
| Separate authority | Payments are made to Alberta Tax and Revenue Administration, separately from CRA payments. |
| Frequency | Generally equal monthly instalments due on or before the last day of each month in the taxation year. |
| Balance due | Generally by the end of the second month after year-end; qualifying CCPCs may defer to the end of the third month. |
| Payment methods | Electronic payment through a financial institution using the Government Tax Payment and Filing Service, and other payment methods accepted by Alberta TRA. |
For Alberta corporations, instalments must be applied to the correct Alberta corporate account and taxation year-end. This is particularly important for corporations with non-calendar fiscal year-ends.
Do inactive corporations still need to file a T2?
Yes. In most cases, a resident corporation must file a T2 return every year, even if the corporation had no activity, no tax payable, or is inactive. A corporation that does not file on time may be subject to penalties and interest even if the business was inactive.
Quebec corporate tax deadlines: T2 and CO-17
A corporation with an establishment in Quebec generally has to file both a federal T2 Corporation Income Tax Return with the CRA and a Quebec CO-17 Corporation Income Tax Return with Revenu Quebec.
The Quebec CO-17 filing deadline is generally six months after the corporation’s taxation year-end. However, the Quebec corporate tax balance is generally due within two months after year-end. Quebec corporations should also ensure that Revenu Quebec instalments are tracked and paid separately where required.
For Quebec corporations, Revenu Quebec generally requires complete financial statements to be attached to the CO-17 filing, including the balance sheet, income statement, retained earnings statement, cash flow statement, and notes, where applicable. For taxation years beginning on or after January 1, 2024, Quebec generally requires corporations to file their corporate income tax returns electronically, subject to certain exceptions.
Alberta corporate tax deadlines: T2 and AT1
A corporation with a permanent establishment in Alberta generally has to file both a federal T2 Corporation Income Tax Return with the CRA and an Alberta AT1 Corporate Income Tax Return with Alberta Tax and Revenue Administration.
The Alberta AT1 return is generally due within six months after the corporation’s tax year-end. Alberta corporate tax payments are generally made by monthly instalments during the year, with any remaining balance due by the end of the second month after year-end, unless a specific Alberta exemption or CCPC deferral rule applies.
For taxation years beginning after December 31, 2024, corporations are generally required to file the AT1 electronically unless an exception applies.
What about corporations in other provinces?
For most provinces and territories, the federal T2 return also serves as the provincial or territorial corporate income tax return. This means that, for regular corporate income tax purposes, corporations in many provinces do not file a separate provincial corporate income tax return.
However, this does not eliminate other provincial obligations. Depending on the province and business activity, a corporation may still have provincial sales tax filings, payroll or employer health tax filings, workers’ compensation filings, annual corporate registry returns, industry-specific taxes or levies, or other special filings.
For corporate income tax, the main separate provincial income tax returns to keep in mind are Quebec’s CO-17 and Alberta’s AT1.
Practical example: December 31 year-end corporation
| Deadline or payment type | General deadline / timing |
|---|---|
| Federal CRA monthly instalments | Generally monthly during the tax year, if required |
| Federal CRA quarterly instalments | March 31, June 30, September 30 and December 31, if eligible |
| Federal corporate tax balance | February 28 or 29, or March 31 for certain qualifying CCPCs |
| T2 filing deadline | June 30 |
| Quebec CO-17 filing deadline, if applicable | June 30 |
| Quebec balance due, if applicable | Generally February 28 or 29 |
| Alberta AT1 filing deadline, if applicable | June 30 |
| Alberta balance due, if applicable | Generally February 28 or 29; qualifying CCPCs may defer to March 31 |
This is why year-end accounting should be completed well before the six-month T2 filing deadline. Waiting until the filing deadline may be too late to avoid interest on unpaid corporate tax balances or deficient instalments.
How to avoid missing your T2 filing, payment and instalment deadlines
The best way to avoid penalties and interest is to organize the corporate year-end process early and maintain a tax payment calendar during the year. It can also help to understand the full corporate tax filing process in Canada before the year-end deadline approaches.
- Prepare or update the trial balance shortly after year-end.
- Complete bank, credit card, loan and payroll reconciliations.
- Review GST/HST, QST and payroll filing balances.
- Track CRA, Revenu Quebec and Alberta TRA instalments separately where applicable.
- Confirm whether the corporation qualifies for monthly or quarterly instalments.
- Estimate the corporate tax balance before the balance-due date, not at the filing deadline.
- Use the correct account number, tax year-end and payment type when making electronic payments.
T2Online.ca can help with your corporate year-end filing
T2Online.ca is designed for Canadian corporations that need professional, efficient, fully online corporate tax filing support.
Our service is especially useful for corporations that already have their bookkeeping completed and can provide internal financial statements and a trial balance. If you are organizing your year-end records, this overview of the documents required for T2 filing can help you prepare before starting the process.
- T2 corporate income tax return preparation;
- Corporate tax compliance;
- Quebec CO-17 filing, where applicable;
- Alberta AT1 filing, where applicable;
- CPA-prepared financial statements under a compilation engagement, where required;
- Review of year-end balances, tax payment deadlines and instalment filing readiness.
Frequently asked questions
Is the T2 return due on April 30?
No. April 30 is generally associated with personal income tax balances. A T2 corporate income tax return is generally due six months after the corporation’s fiscal year-end.
Is corporate tax payable when the T2 is filed?
Not necessarily. Corporate tax is often payable before the T2 filing deadline. Most corporations must pay their balance within two months after year-end, while certain qualifying CCPCs may have three months.
When do corporate instalments start?
Corporate instalments are generally not required in the first tax year after incorporation. They may start in the second tax year if the corporation is no longer exempt and tax payable exceeds the applicable threshold.
Are federal instalments paid to CRA only?
CRA instalments generally cover federal corporate income tax and the provincial or territorial corporate income tax administered through the federal T2 system, other than Quebec and Alberta.
Does a Quebec corporation need separate instalments?
Yes, where required. Quebec corporate income tax instalments are paid to Revenu Quebec separately from CRA payments.
Does an Alberta corporation need separate instalments?
Yes, where required. Alberta corporate income tax instalments are paid to Alberta Tax and Revenue Administration separately from CRA payments.
Does a corporation with no activity still need to file a T2?
In most cases, yes. A resident corporation generally has to file a T2 return every year, even if it is inactive or has no tax payable.
Final takeaway
The most important point to remember is simple: the T2 filing deadline, the corporate tax payment deadline, and the corporate instalment deadlines are separate obligations.
A corporation may have six months to file its T2 return, but the tax balance may be due within two or three months after year-end, and instalments may be required during the year. For Quebec and Alberta corporations, separate provincial corporate income tax filings and payments may also
