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Physician guide · 2026
Year-end checklist for a medical corporation.
Most of the value in a year-end is decided before the year ends. This is the list we work through with physician clients each autumn, for a December 31 year-end.
Before December 31
Decisions that cannot be made afterwards.
- Salary and bonus. Set the year's salary so RRSP room and CPP land where you want them. Salary must be paid, or accrued and paid within 180 days.
- Dividends. Decide the amount and sign the director's resolution before the payment. With Ontario's dividend tax credit falling on January 1, 2027, check whether a 2026 dividend is cheaper.
- Equipment. Purchases count only if the asset is in use by year-end. Check the current first-year write-off rules before buying — the Productivity Mega Deduction announced on September 15, 2026 would allow immediate expensing of most equipment acquired on or after that date, but it is still draft legislation.
- Passive income. If investment income in the corporation is approaching $50,000, plan around the federal small business limit.
- Instalments. Confirm corporate and personal instalments are paid; FHO+ may have raised your income this year.
- Shareholder loan. Clear any amount you owe the corporation.
- Corporate records. Keep the minute book and registers current. The CPSO Certificate of Authorization is not a year-end item — it renews on the anniversary of its issue date, which for most physicians is not December 31. Check when yours falls, because the College issues a notice to revoke 60 days after a missed deadline. The $175 renewal is yours to file.
What to send your accountant
- Bank and credit card statements for the year, or access to your bookkeeping records
- OHIP remittance advices and any private billing records
- Payroll records and the T4 summary
- Investment statements for accounts held by the corporation
- Loan, lease and equipment purchase documents
- Home-office, vehicle and professional dues details
- Insurance premiums paid by the corporation
Dates after a December 31 year-end
End of February: T4s and T5s filed.
March 31: corporate tax balance due for most MPCs (three months after year-end).
April 30: personal tax balance due.
June 30: T2 return and the Ontario annual return.
Your own dates: deadline calculator.
Quick answers
What physicians ask at year-end.
What year-end should a medical corporation choose?
We prefer December 31. It lines the corporation up with your personal tax year, which makes salary, dividend and RRSP planning simpler.
When is the T2 due for a medical corporation?
Six months after year-end, so June 30 for a December 31 year-end. The tax itself is due earlier: three months after year-end for most small Canadian-controlled private corporations.
Can I declare a bonus at year-end and pay it later?
Yes. An accrued bonus is deductible in the year if it is paid within 180 days after year-end, with source deductions remitted when it is paid.
Do I need financial statements every year?
Yes. The T2 is prepared from annual financial statements. If a lender, an insurer or a prospective partner asks for a compilation report, the CPAs on our team prepare it.
General information for Ontario medicine professional corporations, not advice for your situation. See also salary versus dividends and key tax dates.
Want this list handled for you?
Call 647-870-8498 or email info@ghayurtax.com. We run the year-end conversation in the autumn, not in June.