Accounting and Reporting for a Canadian Corporation

Accounting and reporting for a Canadian corporation owned from Ukraine means a T2 return to the CRA within 6 months of the tax year end (even when no tax is payable), the tax balance paid 2 months after year end, GST/HST returns once taxable sales exceed $30,000, payroll deductions remitted by the 15th of the following month and T4 slips by the last day of February, plus a yearly registry filing: a federal corporation files its annual return within 60 days after its anniversary date, and an Ontario corporation within 6 months after its tax year end. A corporation controlled by a non-resident is not a CCPC, so it pays federal tax at the 15% general rate plus provincial tax. Key Solutions coordinates this work: a Canadian partner accountant keeps the books and files, and we set the tasks, check deadlines and figures and prepare owner reporting.

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What a Canadian corporation files and when

Reporting runs through two channels. The Canada Revenue Agency (CRA) receives tax returns, GST/HST, payroll deductions and withholding on payments to non-residents. The registry, Corporations Canada for federal corporations or the provincial registry, receives the annual return and information on individuals with significant control. The deadlines below come from canada.ca, Corporations Canada and ontario.ca as of 10.2026.

When a due date falls on a Saturday, Sunday or a public holiday recognized by the CRA, the filing is on time if the CRA receives it on the next business day.

A Ukrainian-owned corporation is not a CCPC

Canada's small business benefits go to a Canadian-controlled private corporation (CCPC). One of the conditions is that the corporation is not controlled, directly or indirectly, by one or more non-resident persons (canada.ca: type of corporation). When the main shareholder is a non-resident of Canada, the corporation remains private but has no CCPC status. In practice:

• tax is computed at the general federal rate: 38% basic rate, 28% after the federal abatement, 15% after the general tax reduction; the 9% small business rate is unavailable (canada.ca: corporation tax rates);
• provincial tax at the higher rate is added: 11.5% in Ontario, 12% in British Columbia;
• the balance of tax is due 2 months after year end, as the 3-month rule is for CCPCs only;
• Alberta has no corporate tax collection agreement with the CRA, so a corporation doing business in Alberta files a separate provincial return.

Rates per canada.ca, checked 10.2026. If shareholders change residence, the corporation's status must be checked again, so we record the owners and their residence at the start of each year.

GST/HST

A corporation must register for GST/HST once its taxable sales exceed $30,000 in a single calendar quarter or over four consecutive quarters; until then it is a small supplier and may register voluntarily (canada.ca: when to register). If the threshold is exceeded within one quarter, tax applies from the sale that took it over.

Rates per canada.ca: GST/HST rates. The place of supply sets the rate, so sales into several provinces are tracked by province. Provincial sales taxes (PST in British Columbia, Manitoba and Saskatchewan, QST in Quebec) are administered by the provinces and checked separately.

Payroll and payments to non-residents

An employer withholds CPP, EI and income tax from pay and remits them to the CRA; a regular remitter does so by the 15th of the following month. T4 slips and the summary are filed by the last day of February. Payroll is kept so that monthly remittances reconcile to the T4s at year end.

When the corporation pays dividends to its Ukrainian owner, Part XIII tax is withheld: the general rate is 25%, and a tax treaty can reduce it (canada.ca: NR4 Guide). A reduced rate requires evidence of the recipient's residence and entitlement, usually Forms NR301–NR303. The tax is remitted by the 15th of the following month, and NR4 slips are filed by March 31. If transactions with a non-arm's length non-resident, such as the owner's Ukrainian company, exceed CAN$1,000,000 in the year, Form T106 is filed with the T2.

Registry, ISC and audit

A federal corporation files its annual return with Corporations Canada within 60 days after its anniversary date; returns filed before the anniversary are not accepted. Since 22 January 2024 information on individuals with significant control (ISC) is filed with the annual return, and changes to the ISC register within 15 days (Corporations Canada: ISC). Corporations Canada may dissolve a corporation that stops filing. Ontario corporations file their annual return through the Ontario Business Registry within 6 months after the tax year end; other provinces have their own rules.

A federal corporation appoints an auditor by default. Shareholders of a non-distributing corporation may resolve not to appoint one. Such a resolution needs the consent of all shareholders, including holders of non-voting shares, and lasts only until the next annual meeting (CBCA, s. 163). We prepare the resolution for each annual meeting; where a bank or investor asks for audited statements, a Canadian auditor carries out the audit.

Records are kept for six years from the end of the last tax year they relate to, at the place of business or residence in Canada; keeping them outside Canada requires written permission from the CRA (canada.ca: keeping records). For a corporation owned from Ukraine this matters, so the location of source documents and the accounting database is agreed before work starts.

Taking over from the previous accountant

For an operating corporation we start with the registry record and the CRA accounts: business number, program accounts RC (income tax), RT (GST/HST), RP (payroll) and NR (non-resident withholding), filed T2s and annual returns. We then reconcile the bank, check CCPC status, filed T4s and NR4s and the ISC register. Differences are recorded in a handover report. Missed years are rebuilt and the missing filings submitted.

What the service includes

• diagnostic: corporate status, CRA accounts, history of T2, GST/HST, payroll and non-resident payments, ISC register;
• selecting and setting up the Canadian partner accountant: scope, document flow, representative access to the CRA;
• bookkeeping with data kept under CRA rules;
• GST/HST returns, payroll remittances and tax instalments monitored before each deadline;
• year-end close, financial statements, T2, T106 where needed, tax payment;
• Part XIII and NR4 for payments to the owner and other non-residents;
• annual return and ISC filing, shareholder resolution on audit;
• management reporting for the owner: profit, cash flow, taxes due;
• a financial statements pack for the Ukrainian owner's CFC report, consolidation with a Ukrainian company on request.

How we work

1. Diagnostic. We check the registry, CRA accounts, CCPC status and past returns.
2. Handover. We take over the books from the previous accountant against a checklist and record differences.
3. Ongoing cycle. Documents, bank reconciliation, GST/HST, payroll, payments to non-residents.
4. Annual cycle. Financial statements, T2, T106, T4 and NR4, annual return and ISC.
5. Owner reporting. Management report, CFC and consolidation pack.

Reporting for the owner in Ukraine

For an owner who is a Ukrainian tax resident, a Canadian corporation is usually a controlled foreign company: a stake above 50%, or above 10% where Ukrainian residents together hold 50% or more (Tax Code of Ukraine, sub-para. 39-2.1.2). Certified copies of the company's financial statements are attached to the CFC report (sub-para. 39-2.5.2), so the corporation's annual statements are prepared for Ukraine as well. We prepare the CFC pack together with reporting for foreign companies. The group's Canadian market entry overview is at innovacg.com.

Registration and immigration: other group companies

Incorporating a federal or provincial corporation and obtaining a business number is handled by regserv.biz: registering a company in Canada. A Canadian corporation gives no right of entry, work or residence by itself. Immigration matters are handled by legal.ua. Key Solutions steps in once the corporation exists or is being formed and is responsible for accounting and reporting.

What we need from you

• certificate and articles of incorporation, corporation number, federal or provincial;
• business number and the list of CRA program accounts;
• the latest T2, financial statements and GST/HST returns, if the corporation is operating;
• bank and payment platform statements;
• shareholder register and ISC register, the owners' tax residence;
• employees and payments to non-residents;
• contacts of the previous accountant and, if any, the auditor.

Documents are exchanged electronically. We do not need bank passwords.

Result

• the corporation's status (CCPC or other private corporation) is confirmed and documented;
• T2 filed, tax and instalments paid on time;
• GST/HST returns, payroll remittances, T4 and NR4 filed without gaps;
• annual return and ISC filed, audit decision taken;
• records kept under CRA rules;
• management report and CFC pack for the owner;
• a CRA and registry deadline calendar for the next year.

Legal basis and sources

Why Key Solutions

Company

KEY SOLUTIONS AUDIT FIRM LLC, Ukrainian company code 39610085, registered since 30.01.2015.

Roles

Canadian books, T2, GST/HST, payroll reports and NR4 are prepared and filed by a Canadian partner accountant; any audit is carried out by a Canadian auditor; the directors approve the financial statements; coordination, control and owner reporting are done by Key Solutions.

Group

We are part of Innova Consulting Group: incorporation by regserv.biz, tax and the owner's CFC matters by crystal.tax, market entry by innovacg.com.

Contract

Scope, liability and confidentiality are set in a contract before work starts.

Frequently asked questions

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