A corporation in Quebec answers to two tax authorities, the CRA and Revenu Québec, plus the Registraire des entreprises. Here is what a typical small corporation must file, and when.
1. The corporate income tax returns
- T2 (federal) and CO-17 (Quebec): due within six months after the end of the corporation's fiscal year, even when no tax is owed.
- Balance due: generally two months after year-end, or three months for Canadian-controlled private corporations that claimed the small business deduction, subject to conditions. Interest runs from that date, not from the filing deadline.
- Financial statements are filed with the returns.
2. Tax instalments
When a corporation's tax for the current or previous year is over $3,000, it generally must pay instalments during the year, monthly or quarterly depending on its situation. Missing them leads to interest.
3. Payroll, if you pay salaries
- Remit source deductions on schedule: federal income tax and employment insurance to the CRA; Quebec income tax, QPP, QPIP and the health services fund contribution to Revenu Québec.
- Issue T4 and RL-1 slips to employees, including yourself if you take a salary, by the last day of February.
- File the annual declaration of wages with the CNESST.
Our payroll service handles all of this.
4. Dividends
If the corporation pays dividends, it issues T5 and RL-3 slips to shareholders by the last day of February.
5. GST and QST
Once registered, the corporation files GST/QST returns monthly, quarterly or yearly, depending on its sales. Our guide Do I need to register for GST/QST in Quebec? explains the $30,000 threshold and filing frequency.
6. The annual update with the REQ
Corporations registered in Quebec must file an annual updating declaration with the Registraire des entreprises du Québec, confirming their address, directors and shareholders. Missing it can lead to the corporation being struck from the register.
7. Records
Keep books, receipts, contracts and minute books. Tax records must generally be kept for six years after the end of the year they relate to.
What it costs to miss a deadline
A late T2 costs 5% of the unpaid tax plus 1% per full month late, up to 12 months, and repeated late filing costs more. Revenu Québec applies its own penalties. Interest on unpaid balances is charged in addition.
Let us keep track
Our corporate tax service prepares the T2 and CO-17 at a fixed price, and our full package (from $250 per month) covers the bookkeeping, sales taxes and year-end, so these dates are handled for you. Ask for a fixed quote.