Year-end tax checklist for Canadian businesses
Twelve things to do in November and December that will save you money on your tax bill.
Published March 12, 2025 · 8 min read
The biggest tax savings happen before December 31. Here is a checklist of moves to make in the last two months of your fiscal year that will reduce your tax bill or position you better for next year.
Accelerate planned purchases
If you were planning to buy equipment, software, or vehicles in Q1 anyway, consider buying before fiscal year-end instead. The Capital Cost Allowance plus the Accelerated Investment Incentive gives you a meaningful first-year deduction.
For zero-emission vehicles, 100% can be deducted in year one up to a cost cap. Major buy-or-defer decision.
Pay outstanding bonuses
Owner-managers and key employees: pay any planned year-end bonuses before fiscal year-end. The corporation gets the deduction in the current year; the employee can recognize the income in the following year if structured correctly.
Top up CPP and RRSP contributions
Personal: max out RRSP contributions before March 1.
Corporate: if you have an IPP, make the corporate contribution before fiscal year-end.
Clean up bad debt
Identify receivables you have given up collecting on. Write them off as bad debt before year-end and reduce taxable income.
Document your collection attempts in case of future audit.
Review GST/HST input tax credits
Make sure every GST/HST-eligible expense from the year has been categorized correctly. Missing ITCs are pure leakage.
Plan dividends for the year
If you are an owner-manager, decide whether to declare dividends before or after year-end. The timing affects both corporate and personal tax outcomes.
Take the Deductly quiz
Run through it before your year-end accountant meeting. Walk in with a checklist of programs to ask about.
Calendar your year-end accounting meeting
If you do not already have one scheduled with your accountant for early November or December, book it now. The best tax planning is conversational and pre-emptive.
Most tax savings happen in November and December, not when you file in April. The discipline of running through this checklist annually pays off many times over the cost of the time it takes.