Annual accounting obligations of a Quebec SME: the complete 2026 checklist

In short. Every year, an SME in France responds to two tax authorities: the tax administration; Canada (CRA) at the federal level and Revenu Québec at the provincial level. An incorporated business files a T2 return and a CO-17 return within six months of its fiscal year-end; an unincorporated business reports its business income on T1 and TP1 slips by June 15, with the balance due starting April 30. In addition, there are the GST (5%) and VAT (9.975%) returns, source deductions if you employ staff, T4 and Relevé 1 slips by the end of February, the annual update with the Registrar of Enterprises, and the retention of records for six years. Here is the complete checklist, with deadlines.

Running a small business in Quebec means dealing with a compliance calendar that never really takes a break: two income tax returns, taxes to file several times a year, employer statements in February, an update with the Enterprise Registrar, and provisional tax payments in between. Every oversight comes at the cost of penalties and interest. This 2026 guide compiles all the annual accounting obligations of a French SME into a single checklist, with the usual deadlines and best practices to cover everything. It complements our start-up checklist for a new business , which covers initial registrations.

Why is the schedule of a Quebec SME so busy?

Quebec is the only jurisdiction where a business deals with two complete tax administrations. Most obligations therefore exist in duplicate: a federal and a provincial income tax return, source deductions paid to both levels, and federal and Quebec statements for employees. Annual compliance is comprised of four main components:

• Income taxes: T2 to the CRA and CO-17 to Revenu Québec for a corporation; T1 and TP1 for a self-employed individual or a partnership.
• Sales taxes: VAT at 5% and VAT at 9.975%, administered together by the tax authorities, to be declared according to the frequency assigned to you.
• Employer obligations: source deductions (DAS), T4 and RL-1 slips, employer summary, CNESST salary declaration and contributions calculated on the payroll.
• Administrative obligations: annual update to the Registrar of Companies, maintenance of books and registers, retention of supporting documents for six years.

The complete annual checklist, in a single table

Here is the master list. The exact deadlines depend on your fiscal year-end, your structure and your employer status: keep this table as a reference, then validate each date for your file.

One detail that traps many managers: for a company, the production date (six months) and the final payment date (two or three months) are not the same. Many SMEs produce on time but pay late, and interest accrues from the payment date, not the production date.

Income taxes: T2 federal, CO-17 provincial

An incorporated company files two separate tax returns annually: the T2 with the IRS and the CO-17 with Revenu Québec, each within six months of the fiscal year-end. The annual financial statements accompany the second quarter in the form of the General Index of Financial Information (GIFR). The balance of tax is due earlier: generally two months after the year-end, or three months for many Canadian-controlled private corporations eligible for the small business deduction. Most corporations also make instalment payments throughout the year, monthly or quarterly depending on their size.

What if your company is not yet incorporated?

A self-employed individual or partner reports their business income on their personal tax returns: the T1 at the federal level and the TP1 in Quebec. The filing deadline is June 15, but any tax balance is payable as of April 30, and instalment payments may be required on March 15, June 15, September 15, and December 15 if the tax payable exceeds the established thresholds. The common pitfall: filing in June, assuming the payment will follow, when in fact interest accrues from the end of April.

VAT: Declarations that come up all year round

As soon as your taxable sales exceed €30,000 over four consecutive calendar quarters, VAT registration becomes mandatory. In Quebec, Revenu Québec administers both taxes: you collect the 5% VAT and the 9.975% VAT (approximately 14.975% combined), you recover the taxes paid on your eligible expenses through input tax credits (ITCs) and input tax refunds (ITRs), and then you remit the net amount.

• Annual frequency: taxable sales of $1.5 million or less (default frequency); quarterly installments can be added if your annual net tax exceeds $3,000.
• Quarterly frequency: sales between $1.5 and $6 million; reporting and payment follow one month after the end of the quarter.
• Monthly frequency: sales over $6 million, or by choice, for example to accelerate recurring repayments.

The detailed operation (registration, ITC and IRT, tax-free and exempt supplies, frequency choice) is covered in our Business VAT guide in Quebec .

Employer: DAS, statements and CNESST

From the moment the first employee is hired, the schedule becomes more demanding. Source deductions are paid at two levels: federal income tax and employment insurance to the CRA; and Quebec income tax, Quebec Pension Plan (QPP), Quebec Parental Insurance Plan (QPIP), and employer contributions, including those to the Health Services Fund (HSF), to Revenu Québec. The annual cycle for a Quebec employer looks something like this:

• Monthly: DAS remittances to the CRA and the Canada Revenue Agency, no later than the 15th of the following month for the usual frequency (closer for large payrolls).
• End of February: T4 to the CRA, RL-1 slips to employees and to Revenu Québec, and summary of employer deductions and contributions.
• March 15: Declaration of wages to the CNESST, which is used to establish your insurance premium for the year.
• All year round: maintaining payroll records and updating withholding rates, which change every January 1st.

Registrar of Enterprises, Books and Custody;

Every business registered in Quebec files an annual update declaration with the Enterprise Registrar and pays its annual registration fees; for most corporations, this declaration is filed at the same time as the Quebec income tax return. Regarding records, the law requires reliable accounting books (general ledger, bank reconciliations, payroll and tax records) and, for a corporation, an up-to-date corporate record book: annual resolutions, register of directors and shareholders. Finally, supporting documents must be kept for six years after the end of the last tax year in question, a period common to both the IRS and the Canada Revenue Agency, in paper or legible digital format.

How much does annual compliance cost, and how can everything be covered without being overlooked?

The good news: this checklist can be entirely delegated. An accountant familiar with your file will handle the complete cycle (bookkeeping, taxes, payroll, returns, Registrar) and manage the schedule for you. This is almost always less expensive than the penalties, interest, and wasted time of piecemeal compliance management.

Côté budget, une PME paie une médiane d'environ 3 000 $ par année pour sa comptabilité, la plupart des mandats se situant entre 500 et 6 000 $ selon le volume de transactions et les services inclus. Basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues; le Baromètre Bankeo détaille ces fourchettes par service et par secteur. Pour tout couvrir sans oubli, le plus simple est de vous faire jumeler avec un comptable dont l'offre correspond exactement à votre liste d'obligations : c'est précisément ce que fait Bankeo, gratuitement, et on vous accompagne aussi longtemps qu'il le faut.

Frequently asked questions

What are the annual accounting obligations of a company incorporated?

Each year, a Quebec company produces a T2 to the CRA and a CO-17 to Revenu Québec within six months of its fiscal year-end, pays its tax balance two or three months after closing, makes its provisional payments, files its VAT returns according to its frequency, fulfills its employer obligations if it has staff, files its annual update with the Registraire des entreprises, updates its corporate books and keeps its supporting documents for six years.

What is the deadline for producing the T2 and CO-17 forms?

Both returns must be filed within six months of the fiscal year-end: a company with a December 31st year-end has until June 30th. Note that the tax balance is due well before then, generally two months after the year-end, or three months for several Canadian-controlled private corporations eligible for the small business deduction. Interest accrues once the payment date has passed, even if the return is filed on time.

What are the deadlines for a self-employed individual not integrated into the system?

Your business income is reported on your personal T1 and TP1 tax returns, which must be filed by June 15. Any tax balance is payable by April 30, and provisional payments may be due on March 15, June 15, September 15, and December 15. If you are registered for VAT, your tax returns are cumulative based on your filing frequency.

What are an employer's annual obligations?

An employer remits their source deductions to the CRA and Revenu Québec, usually by the 15th of the following month. At the end of February, they submit T4 slips, RL-1 slips, and a summary of employer deductions and contributions. By March 15, they file their payroll declaration with the CNESST. This includes contributions calculated on the payroll, such as the contribution to the Health Services Fund.

How long should you keep your accounting records?

The general rule is six years after the end of the last tax year in question, for both the CRA and Revenu Québec. Digital formats are accepted if they remain legible and complete. Certain corporate documents, such as the company's books, resolutions, and shareholder registers, must be kept for the entire duration of the business.

How much does an accountant cost to manage all these obligations?

Une PME paie une médiane d'environ 3 000 $ par année pour sa comptabilité, la plupart des mandats se situant entre 500 et 6 000 $ selon le volume et les services. Basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Le Baromètre Bankeo détaille ces fourchettes, et le jumelage avec un comptable vérifié est gratuit et sans engagement pour l'entrepreneur.

Official sources

1. Revenue Agency of the | Canada Corporate Income Tax
2. Revenue Agency of the | Canada Salary deductions
3. Corporate tax;
4. Revenu Québec, VAT and VAT;
5. Quebec CPA Order