Tax glossary

Fiscal year-end

Short answer

A fiscal year-end is the closing date of a corporation's tax year, which it chooses on its first return and which then fixes every subsequent filing and payment deadline.

Last reviewed: August 20, 2026

Key facts

Category	Corporate tax
Set by	The corporation, on its first return
Maximum length	53 weeks
Drives	T2 and CO-17 filing deadlines, tax payment dates, instalments
Changing it	Requires CRA approval except in limited circumstances
Authority	Canada Revenue Agency; Revenu Québec

What it means in practice

A corporation may choose any year-end within 53 weeks of incorporation. Once chosen it is locked in — changing it later requires CRA approval and a business reason, not a tax preference. The choice has real consequences. A year-end shortly after your busiest season keeps a full year of profit in one period and can defer tax by nearly a year; one that splits the season complicates comparisons and cash planning. Sole proprietors and most partnerships do not get the choice: they report on a December 31 calendar year.

The choice is made once, and quietly

A corporation picks its year end by filing its first T2 for a period ending on that date. There is no separate election, which is why the decision is often made by default rather than deliberately — and it then governs every deadline for the life of the corporation. A year end chosen just after the busiest season gives the clearest picture of a full trading cycle and leaves time to prepare. A December 31 year end aligns with personal filing but places corporate and personal work in the same window, which is worth avoiding where the same people prepare both. Sole proprietorships and most partnerships do not have this flexibility: their business year generally aligns with the calendar year.

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FAQ

Can I change my corporation's year end?

Not unilaterally. The CRA must approve a change and will want a sound business reason — a change of ownership, an amalgamation or aligning with a parent company are the usual ones. Reducing tax is not a sufficient reason on its own.

What happens to the year end when the corporation is sold?

An acquisition of control triggers a deemed year end on the date of the change, so the corporation has a short taxation year and a return is due for it. Annual limits, including the small business limit, are prorated across the two periods.

Sources

Need this applied to your situation?

A definition only gets you so far. Talk to a Montréal CPA about what this means for your return — in English or French.

Contact (438) 375-3649