T2 Nil Return vs. T2 Short Return

At a glance

• T2 nil: $0 revenue, $0 expenses, no transactions of any kind. The full T2 form, but every financial line is zero.
• T2 Short: A 2-page version of the T2 for small CCPCs that had income but meet specific simplicity criteria.

Who can file the T2 Short?

You can use the T2 Short Return if all of these are true:

• The corporation is a CCPC throughout the year
• This year and last year both show nil net income or a loss for tax purposes
• The corporation has a permanent establishment in only one province or territory
• It is not claiming any refundable tax credits (other than refund of instalments paid)
• It did not receive or pay out taxable dividends
• It is reporting in Canadian currency
• It does not have an Ontario transitional tax debit
• It does not have an amount calculated under section 34.2

If all of those are true and you had no activity, you can file either form — most preparers default to a true nil T2 because it's cleaner for catch-up filings later.

Decision flow

1. Did the corporation have any revenue, expenses, payroll, dividends, or asset activity?
   → No: T2 nil return. Yes: go to step 2.
2. Does the corporation meet every T2 Short criteria above?
   → Yes: T2 Short Return. No: Full T2 — get a custom quote.

Why this matters

Filing the wrong form can trigger CRA correspondence, processing delays, and in some cases reassessment. NilTaxReturn's flat fee covers true nil returns. If your situation calls for a T2 Short or full T2, contact us for a quote.