Year-end is when you still have time to change the result, not simply the time to file your taxes. Once the fiscal year closes, many planning opportunities are locked. A short planning pass before year-end is cheaper than cleaning up after the T2 has already been filed.
This checklist is for Canadian-controlled private corporations (CCPCs) and other private companies, with BC notes where they matter. It is for planning, and not a substitute for the filing calendar. For due dates, see Corporate Tax Filing Deadlines in Canada: Key Dates and Checklist for 2026. For CRA process and compliance topics, see our Canadian Tax & Compliance hub.
Know your year-end and the two clocks
Your fiscal year-end is the planning deadline. Your T2 is due six months later. The balance of tax is generally due two months after year-end (three months for some CCPCs that meet certain CRA tests).
Example: a December 31, 2026 year-end means planning decisions belong in late 2026. The balance is most likely due at the end of February 2027. The T2 is due June 30, 2027.
If your year-end is not December 31, shift every item on this list to your last month, not to calendar December. Owner bonuses, donations, and asset purchases follow the fiscal year, and not the calendar year.
Owner compensation: salary, bonus, dividends
How you pay yourself changes corporate tax, personal tax, CPP, and RRSP room.
- Salary is deductible to the company and creates CPP and RRSP contribution room. It needs payroll source deductions.
- Bonus accrued at year-end is generally deductible in that year if you pay it within 180 days after year-end and the amount is reasonable. Missing the 180-day window can push the deduction to the following year.
- Dividends are not a corporate deduction. They use after-tax corporate dollars and are taxed in your hands under the dividend rules. Eligible vs non-eligible depends on the company’s general rate income pool (GRIP) and how the income was taxed.
The mix should match cash in the company, your personal instalments, and next year’s RRSP room. See Salary vs. Dividends in Canada. Do not declare a dividend you cannot support from the bank after tax instalments and payroll.
Checklist before year-end
Work through these with your bookkeeper or accountant while you can still act.
Books and balances
- Reconcile bank, credit cards, and loans
- Confirm accounts receivable you still expect to collect, and write off or allow for debts that are uncollectable
- Record inventory and work-in-progress if those are in the nature of your business
- Clear old shareholder loan activity: new loans to a shareholder generally need to be repaid before the end of the following tax year from the one in which they were made. Otherwise, they should be included in the shareholder’s personal income
Income and expenses
- Invoice work that is done so revenue is in the right year
- Accrue bona fide expenses, including bonuses that will be paid out within 180 days
- Review prepaid expenses and deposits to ensure they are recorded in the appropriate fiscal year
- Confirm meals, motor vehicle, and home-office claims have logs and receipts
Assets and CCA
- Asset purchases near year-end can start capital cost allowance, subject to the half-year (or other prescribed) rules for the class. Buying in the last days only helps if the asset is available for use
- Keep the supporting documentation for any purchases and dispositions
- Do not assume every purchase is fully deductible in year one
Donations and tax accounts
- Charitable gifts from the corporation need official receipts and must be made by year-end to count in that year
- Track the capital dividend account (CDA) and refundable dividend tax on hand (RDTOH) if you plan capital or taxable dividends. Life insurance proceeds and capital gains feed CDA. See Life Insurance and Estate Planning for Business Owners if insurance is part of the plan.
Passive income and the small business deduction
- Investment income earned in the company or its associated companies can grind the small business deduction once adjusted aggregate investment income hits a specific threshold. If you hold a large portfolio, ask whether that still fits the plan before year-end
Payroll and slips (calendar year, even if your T2 year-end differs)
- T4 and T5 slips for the calendar year are generally due the last day of February following the year
- Directors’ fees, taxable benefits, and shareholder appropriations need to be on the right slip
BC extras
- BC Employer Health Tax if payroll is in range
- PST and GST filings on their own cycles (could be different from your corporate tax periods). Please review the October 1, 2026 professional-services PST change to determine if it applies to your business
- Installments for corporate tax so you are not paying the whole balance in one cash hit two months after year-end
After year-end, before the T2
Planning does not stop on the last day. In the months after year-end you still:
- Pay the accrued bonus inside 180 days if you claimed it
- Pay the corporate tax balance on time (interest starts after the payment due date, even if the T2 is later)
- Assemble T4s, T5s, and T5018s if year-end is December
- Decide salary vs dividends for the new year with a full-year cashflow forecast
Penalties and interest stack quickly if you file late, so it is better to file on time even if payment has to follow separately.
What this checklist is not
This is not the December personal “RRSP and donation” list, and it is not a full T2 preparation binder. Personal year-end tips for BC businesses (including unincorporated owners) live on Year-End Tax Tips for Small Businesses in BC. Use both if you have a company and personal filings.
Tax planning is legitimate. Hiding income is not.
FAQ
When should we start year-end corporate tax planning?
At least a few weeks before fiscal year-end, earlier if you are considering a bonus, a large asset purchase, or a dividend. Some moves need banking and payroll processing time, not just a journal entry.
Can we accrue a bonus at year-end and pay it later?
Often yes, if the bonus is reasonable, the employee is legally entitled, and you pay it within 180 days after year-end. Confirm the facts with your accountant before you rely on the deduction.
Is the T2 due at the same time as the tax payment?
No. Payment is usually due two months after year-end (three months for some CCPCs). The T2 is due six months after year-end.
Do December 31 personal deadlines apply to my corporation?
No. Personal RRSP and T1 dates follow the calendar year, but your corporation follows its own fiscal year-end. Directors still have calendar-year T4/T5 duties.
Should we pay a dividend before year-end to empty the bank?
Only if CDA/RDTOH, personal tax, and cash for the corporate tax balance all support it. Emptying the account can leave you short for the two-month tax payment.
Next Steps
Pick your fiscal year-end date, then work the checklist backward from that day. Bring a current trial balance, bank recs, and a list of planned bonuses, dividends, and asset buys.
For filing dates and CRA process, use the Canadian Tax & Compliance hub and the corporate deadlines guide. To walk through the numbers for your company, contact RHN CPA.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.
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