Corporate tax

What active business income means for a corporation, what is excluded, and why it decides which income can get the lower small business tax rate in Ontario.

Learn what aggregate investment income is, what a CCPC includes in it, and how it drives the extra refundable tax on investment income.

What associated corporations are, how the CRA decides association through control and family ties, and why associated companies share one business limit.

Learn what the corporate balance-due day is, when it falls two or three months after year-end, who qualifies for the later date, and how it differs from the T2 filing deadline.

Understand capital cost allowance, how it differs from accounting depreciation, and why equipment purchases need more than a bank-transaction category.

What the capital dividend account is, what goes into it, how a corporation pays a tax-free capital dividend with Form T2054, and the 60% tax on excess elections.

Learn what a CCPC is, how the CRA tests Canadian control, and why the status matters for the small business deduction, for Ontario corporations.

Learn what the GST/HST closely related corporations election does, who can make it, how it is filed on Form RC4616, and which supplies it does not cover.

A corporation is a legal entity separate from its owners. See what that means for liability, tax, record-keeping and paying yourself, with an example for Ontario owners.

Learn what a deemed dividend is, the four situations in section 84 that create one, how a share buyback can trigger it, and what to ask your accountant first.

What makes a dividend eligible, how the 138% and 115% gross-up works, and why a corporation must designate and notify shareholders in writing.

Understand a corporation's fiscal year-end and why its reporting period, T2 filing date and corporate tax payment deadlines are different dates.

Learn what the general corporate tax rate is, how the 15% federal and 11.5% Ontario rates combine to 26.5%, and which income pays it instead of the small business rate.

What the general rate income pool (GRIP) is, why it limits how much of a dividend a CCPC can designate as eligible, and what happens if you exceed it.

The half-year rule limits capital cost allowance in the year you buy depreciable property to half of your net additions. See how it works, exceptions and an example.

A holding company is a corporation that owns shares or investments in other companies. Learn how holdco and opco work, what dividends and passive income rules apply, and what to ask.

Immediate expensing lets a business deduct the full cost of qualifying equipment in the year it is ready for use. Learn how it differs from CCA and what is still proposed.

What intercorporate dividends are, why a corporation can usually deduct dividends it receives, and when Part IV tax applies to a holding company or investor.

Learn what a federal investment tax credit is, how it differs from a deduction and from a GST/HST input tax credit, and how corporations earn, carry and use it.

A non-capital loss from a business can be carried back 3 years and forward 20. See how individuals and corporations claim it and what to keep.

Paid-up capital is the tax measure of what shareholders put into a class of shares. See how it starts from stated capital and why it matters on a redemption.

What Part IV tax is, when a private corporation pays 38 1/3% on dividends from other corporations, and how it is refunded through RDTOH.

Learn how the $50,000 passive income limit shrinks a CCPC’s small business limit, how associated companies are counted and what to plan for in Ontario.

Learn what a personal services business is, the five conditions the CRA applies, why the small business deduction is denied and which factors decide employee status.

Recapture is income you add back when you sell depreciable property for more than its remaining tax value. Learn how it arises, with a simple example.

Learn what refundable dividend tax on hand is, how eligible and non-eligible accounts build up, and how paying dividends can trigger a corporate refund.

A section 85 rollover lets you transfer property to a Canadian corporation for shares and defer tax on the gain. Learn how the election works and what to watch for.

Learn what a shareholder benefit is, how the CRA treats personal costs paid by a corporation, and what records help show a payment was genuinely business.

Learn what a shareholder loan account records, why the direction of the balance matters, and why personal withdrawals from a corporation need careful review.

Learn how the small business deduction lowers corporate tax for CCPCs, how the business limit is shared and reduced, and what changed for Ontario on July 1, 2026.

What the SR&ED tax credit is, which research and development work qualifies, how the refundable credit works for CCPCs, and the claim deadline Ontario businesses must meet.

Learn what a T2 corporation income tax return is, which records support it, and why filing the return does not settle every corporate tax obligation.

What T2 Schedule 50 is, which private corporations must file it, how the 10% shareholder rule and ten-shareholder limit work, and what records to bring to your accountant.

Learn what the tax on split income is, which private-company income it targets, the main exclusions and why family dividends need review before they are paid.

A terminal loss arises when you sell your last asset in a CCA class and capital cost allowance balance remains. Learn how it works, with an example and what to keep.