Canadian
Corporations
Resident
Corporation
All corporations must file tax return in Canada
each year even if there is no taxes owing.
Non-resident
Corporations
A non-resident corporation must file a Corporate tax
return in Canada, if...
- the entity was operating in Canada;
- it had a taxable capital gain;
- it sold taxable Canadian property;
Services Rendered in
Canada (Withholding Amount)
Non-resident corporation is
subject to a 15% withholding paid to it for services provided in Canada. This withholding is held on account in
anticipation of potential tax liabilities that the corporation may owe in
Canada.
Disposition of
Taxable Canadian Property (Certificate of Compliance)
If a non-resident corporation disposes of taxable Canadian
property, then the entity must obtain Certificate of Compliance from the CRA.
Due Date
Corporation must file tax return within six months after the
end of the fiscal year end. For example
if the fiscal year ends on December 31, then the deadline to file the return is
June 30.
What happens if the
return is late?
If the return is filed late, then the penalty is 5% of the
taxes owing as of the filing date, plus 1% of this unpaid tax for each month,
up to a maximum of 12 months. Penalties
could be higher if CRA issued a demand to file the return under subsection
150(2).
Non-resident
Corporations
Non-resident corporation's late filing penalty is:
greater of
- $25 for each day, up to a maximum of 100 days.
