T2 Short Return
The T2 Short Return is a simpler, two-page version of the T2 Corporation Income Tax Return, for eligible small corporations. Most corporations still file the full T2 — the Short version is only for those that meet every condition below.
Download the official T2 Short Return (canada.ca)Opens the current version on the Government of Canada website — always the up-to-date form, straight from the source.
Who can use the T2 Short
There are two types of corporation that can use it: a Canadian-controlled private corporation (CCPC) throughout the year with a nil net income or a loss for income tax purposes, or a corporation that is exempt from tax under section 149 (such as a non-profit).
On top of that, all of these must be true: the corporation has a permanent establishment in only one province or territory, it isn't claiming any refundable tax credits (other than a refund of instalments it paid), and it did not receive or pay out any taxable dividends. If any one of these doesn't hold, the full T2 return is required instead.
You still have to file
A corporation generally has to file a T2 every year even if it had no activity and owes no tax — a “nil” or dormant year still needs a return. The T2 Short exists to make that simpler for the corporations that qualify; it doesn't remove the obligation to file.
Not sure if you qualify?
The conditions are easy to trip over — one taxable dividend, or a permanent establishment in a second province, and you're back to the full T2. If you're unsure whether your corporation can use the Short return, it's worth a quick check before you file so it isn't rejected or refiled.
FAQ
It's a shorter version of the same corporate return, meant for small corporations that meet strict conditions (a CCPC with a loss or nil income, or a 149-exempt corporation, plus a few other requirements). Everyone else files the full T2.
Generally yes. A corporation usually has to file a T2 for every year it exists, even a nil or inactive year. Not filing is a common and avoidable problem.
No. If the corporation received or paid any taxable dividends in the year, it doesn't meet the conditions and files the full T2.
Yes — corporate returns (T2 and T2 Short) are core work for us. We'll confirm which return applies and file it correctly. Book a free consultation to start.
Corporate return due — Short or full T2?
We'll confirm which return your corporation should file and handle it end to end, including nil and catch-up years. Book a free consultation.
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Other CRA forms
General information only, not tax advice. This is a copy of publicly available information about an official Government of Canada form; the form itself is published by the CRA. Verify details for your situation on canada.ca or with us.