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T1 (PERSONAL TAX)

  • ·         Income can be employment, rental, business, etc (anything)
  • ·         Deadline is June 30 for individuals

T2 (CORPORATE TAX)

The T2 is the mandatory corporate income tax return form for the federal government of Canada. The exact term for this statement is “declaration of corporate income.” Each company must file a corporate income tax (T2) for each taxation year. Companies can complete one of two types of T2 statements proposed by the Canada Revenue Agency. T2 corporate income statement that can be used by any company. However, in addition to the T2, there are several schedules. It’s not enough to simply complete the T2 corporate income tax returns to complete your company’s obligations to the federal government of Canada. There are other financial statements to file with the General Index of Financial Information (GIFI) with appropriate schedules.

T4 (ANNUAL PAYROLL)

T4 is a tax document that summarizes how much you’ve earned over the past year. Your T4 slip will also show any required deductions, such as employment insurance premiums or income tax, made by your employer. If your employee worked in more than one province or territory in the year, fill out separate T4 slips for each province or territory. For each location, indicate the total remuneration paid to the employee and the related deductions, such as CPP/QPP contributions, EI premiums, PPIP premiums, and income tax. For more information, go to which provincial or territorial tax tables should you use.

T5 (DIVIDENT/SHAREHOLDER INCOME)

If you are the owner of a Canadian corporation, you can choose to pay yourself (and other shareholders) dividends instead of a salary. Alternatively, some shareholders also take dividends in addition to a salary depending on their tax planning strategy. If you do decide to pay yourself dividends, it is important to ensure that you prepare the proper documentation for Revenue Canada (CRA) and if you live in Quebec, Revenue Quebec (MRQ) since this must be reported as investment income on your personal tax return in the calendar year in which the dividends are paid.  If you are paying dividends to a Canadian shareholder, you must issue a T5 slip while nonresident shareholders receive an NR4 slip. The T5 dividend slips are generally due by February 28th of the calendar year following the year in which the dividend was paid Although no income taxes are due at the time of filing the T5 slips with the government, interest and penalties apply for late filing.

T1(PERSONAL TAX)

  • Income can be employment, rental, business, etc (anything)
  • What is a T2 Tax Return?
  • The T2 is the mandatory corporate income tax return form for the federal government of Canada. The exact term for this statement is “declaration of corporate income.” Each company must file a corporate income tax (T2) for each taxation year. Companies can complete one of two types of T2 statements proposed by the Canada Revenue Agency.
  • T2 Corporation Income Tax Return
  • T2 corporate income statement that can be used by any company. However, in addition to the T2, there are several schedules. It’s not enough to simply complete the T2 corporate income tax returns to complete your company’s obligations to the federal government of Canada. There are other financial statements to file your with the General Index of Financial Information (GIFI) with appropriate schedules.