Tax Filing Requirements for Small Canadian Nonprofits
Are non-profit organizations tax exempt in Canada?
Canadian non-profits do not need to pay income tax, but these organizations still have to file a return with the Canada Revenue Agency. Non-profit tax filing requirements vary based on the type of organization, the value of the organization's assets, and other factors. Ref :QuickBooks Mar 29, 2017
Registered Charities
If your non-profit is classified as a registered charity<, you must file Form T3010 (Registered Charity Information Return). This form is due within six months of the end of your fiscalRelating to finances or financial matters. year. For example, if your charity’s fiscal year ends on Oct. 31, your return is due by April 31 of the following year.
T2 Corporate Returns
Non-profits that are not classed as charities must file a T2 Corporate Income Tax Return. This form is eight pages long, but if your organization only does work in a single province or territory, you can fill out the short version of the T2 instead. The short version is only two pages, and it comes with three schedules. T2s are also due six months after the last date of your organization’s fiscal year. If you file late, the CRA charges late penalties< based on the amount of tax you owe. In most cases, this doesn’t apply to non-profits, but the agency also charges a 10% penalty for unreported income, and this rule may apply to non-profits. If the CRA owes your organization a tax refund, there is no penalty for filing late, but you must file within three years to claim your refund.