Stay ahead this fiscal year with Accounting Montreal’s breakdown of the latest corporate tax changes in Canada and Québec. Whether you’re a small business owner or CFO of a growing enterprise, understanding key updates helps you plan smarter, avoid penalties, and maximize your eligible credits.
Filing Deadlines & Payment Schedules
Corporate tax season in 2025 brings no deadline changes, but payment deferrals are available.
Key Federal Deadlines
- T2 Filing Deadline: 6 months after fiscal year-end
- Tax Payment Due: Within 2 months (or 3 months for eligible CCPCs)
- Instalments: Monthly or quarterly, depending on eligibility
Québec Deadlines
- Québec mirrors federal deadlines and also supports payment deferrals.
- File with both CRA and Revenu Québec
- Payments deferred: From April 2 to June 30, 2025, interest-free (filing deadlines still apply)
Tip: File early even if you plan to defer payment. CRA and Revenu Québec will resume charging interest starting July 1, 2025.
2025 Corporate Tax Rates in Canada & Québec
No major rate changes this year, but a few incentives stand out.
Federal Tax Rates
- General Corporate Rate: 15%
- Small Business Rate (SBD): 9% on the first $500,000 of active business income
- Zero-Emission Manufacturers: Reduced rate of 7.5% (or 4.5% under SBD)
Québec Tax Rates
- General Corporate Rate: 11.5% (Combined: 26.5%)
- Small Business Rate: 3.2% (Combined: 12.2%)
Small business deduction remains available on the first $500,000 of active business income. Make sure your passive income and taxable capital stay below federal limits to remain eligible.
New & Notable for 2025
Let’s break down the biggest tax developments business owners should watch this year.
1. Canada’s New Digital Services Tax (DST)
- Rate: 3% on revenue from certain digital services
- Effective: Retroactively from Jan 1, 2022
- First Payment Due: June 30, 2025
- Register By: January 31, 2025
This applies to large companies with digital platforms generating Canadian-source revenue. If you’re unsure whether this applies to your business, contact us at Accounting Montreal.
2. Québec E-Business Tax Credit Overhaul
Québec’s Tax Credit for E-Business Development (TCEB) is shifting:
- The refundable portion is dropping from 24% to 20% over time
- The non-refundable portion will rise to 10%
- Starting after Dec 31, 2025, maintenance-only tech services will no longer qualify
- Québec will prioritize AI-powered and cloud-based development projects
Good to Know: Projects approved before the cutoff still qualify under current rules.
3. Mining & Critical Minerals Credit in Québec
- New credit introduced March 25, 2025
- Base Rates: 22.5% (for specified corporations) or 10%
- Enhanced Rates: 45% and 20% for critical mineral projects
- Cap: $100 million per group every 5 years
Ideal for companies developing Québec’s growing green energy supply chain.
4. Other Eliminations & Extensions
- Synergy Business Credit eliminated March 26, 2025
- Print Media Digital Transformation Credit extended to December 31, 2025
- Several natural resource-related deductions were phased out
What to Watch in 2025
| Focus Area | Action Item |
|---|---|
| DST Registration | Register by Jan 31, remit by June 30 |
| Tax Payment Deferrals | Use April–June window wisely—interest starts July 1 |
| SBD Eligibility | Monitor passive income & capital thresholds |
| Zero-Emission Manufacturing | Apply for reduced tax rates now |
| TCEB Shift | Adapt development projects for post-2025 criteria |
| Mining Credits | Confirm eligibility and cap usage strategy |
Final Thoughts from Accounting Montreal
In 2025, staying compliant isn’t just about avoiding penalties but optimizing opportunities.
From federal digital taxes to Québec’s revamped credit landscape, there are plenty of moving parts. If you’re unsure how these changes affect your business, we’re here to help you decode the fine print, file on time, and save money.
Need Expert Corporate Tax Help?
Let Accounting Montreal handle the complexity while you focus on running your business. From corporate tax returns to optimizing credits and navigating new rules, we’ve got your back.
Book a free consultation today.
