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Let’s be honest. Every business, at some point or the other, has faced it. Missing a corporate tax deadline is that nightmare that keeps you awake at nights. Missing deadlines means watching your hard-earned profits vanish through penalties and interest. 

Good news is – you can avoid getting a letter from the Canada Revenue Agency (CRA) about a missed deadline. How? By staying on top of corporate tax deadlines in London, Ontario. Not only does it help keep your finances in check but you can also make an informed decision in favor of your business’s long-term growth. 

The right knowledge and planning can make a world of difference in your cash flow and profitability. A Tax accountant in London ontario is your go-to person who can help you in this. 

Today, in this guide, we will talk about everything you need to know about:

• Corporate tax deadlines
• How to stay ahead of them
• How to maximize tax savings
• And how to keep your business finances working for you

Without further ado, let’s get started!

Understanding Corporate Tax in Ontario 

The first step to tax planning starts with understanding how corporate tax works. If you own a corporation in London, Ontario, the law says you must pay both federal and provincial corporate taxes. Usually, the federal tax rate is 15% after the general tax deduction. However, businesses in Ontario must pay an additional tax:

• 3.2%, if you are a Canadian-controlled small, private corporation (on the first $500,000 of active business income).
• General corporations must pay 11.5% on income exceeding the small business limit 

If you want to avoid costly penalties and ensure you qualify for tax incentives, staying compliant is key. In that case, you are eligible for incentives like the Ontario Small Business Deduction and the Ontario Innovation Tax Credit, which can help improve cash flow and maximize your profits. 

Key Corporate Tax Deadlines for Businesses in London, Ontario 

Late filings can indeed eat into your profits. However, the right planning can help you stay compliant and keep your business financially strong. Let’s explore the key deadlines that every business should be aware of:

A. Corporate Income Tax Return (T2) Deadline

Your T2 corporate income tax return is due 6 months after the end of your business’s fiscal year. For example, if your business’s fiscal year ends on December 31, your return is due by next year June 30. 

Missing this deadline can charge you late-filing penalty along with interest on unpaid taxes. A small slip-up like this can soon turn into an expensive affair every business owner wants to avoid. 

B. Corporate Tax Installments

Suppose your business owes more than $3,000 in federal corporate tax, you don’t have to pay everything at once. Instead, pay in installments throughout the year. Below are the frequency of installments for businesses of different sizes:

• Larger corporations are required to make monthly installments
• Small Canadian-controlled private corporations should make quarterly payments

Installments are due either on the 15th of each month or at the end of each quarter. If you fail to pay on time, it could unnecessarily cost you more than necessary. 

C. HST/GST Filing Deadlines

Businesses that charge their customers 13% Harmonized Sales Tax (HST) must file and remit it on time. How often you need to pay the money depends on your annual revenue. 

Annual filers must file and remit HST within three months of the end of their business’s fiscal year. Quarterly filers must file returns four times a year and submit those returns and pay within one month of the end of each financial quarter. Monthly filers must pay within one month after the last day of the reporting month. 

Make sure you set up automated reminders so that you don’t miss these deadlines. Otherwise, it could result in late penalties and interest, which is the last thing you would want. 

D. Payroll Tax and Source Deductions

Do you have employees working for you? You must withhold and remit payroll taxes. They include Canada Pension Plan (CPP), Employment Insurance (EI), and income tax deductions. Failing to do so can result in CRA audits. 

The payment schedules are different and depend on the size of your payroll. Smaller employers are regular remitters who must pay the withheld CPP, EI, and income tax deductions by the 15th of the month following the pay period. 

Accelerated remitters must remit twice a month or weekly depending on the average monthly withholding amount. 

E. Workplace Safety and Insurance Board (WSIB) Premiums

Businesses who employ workers in Ontario must contribute to WSIB premiums. Monthly filers must pay by the 30th of each month, while quarterly filers are due at the end of each quarter. Compliance to this rule helps keep your workforce protected and avoid unnecessary fines. 

Tips for Staying on Top of Corporate Tax Deadlines 

Keeping up with tax deadlines can save you thousands in penalties. Not to mention the unnecessary stress that it causes when you miss a deadline. Here’s how you can avoid corporate tax deadlines:

• Use accounting software to track deadlines and automate filings. Xero or QuickBooks are good examples. 
• Working with an expert account in London, Ontario can help you stay compliant. 
• Set up calendar reminders so that you don’t have to remember tax due dates all by yourself. 
• Plan your cash flow better to stay safe when tax payments are due. 

Conclusion

Maintaining a profitable business is every business’s goal. Corporate tax deadlines help you stay compliant and avoid unnecessary stress (financial or emotional). If you want to stay compliant, being aware of corporate tax deadlines can help you avoid penalties, protect cash flow, and ensure stability in the long run. 

If you are unsure about deadlines, why not consult an expert who can help you in that? After all, smart planning is what saves you during those tax seasons.