Corporation income tax return

All resident corporations (except tax-exempt Crown corporations, Hutterite colonies and registered charities) have to file a corporation income tax (T2) return every tax year even if there is no tax payable. This includes:

• non-profit organizations
• tax-exempt corporations
• inactive corporations

For tax years starting after 2023, all corporations have to file their T2 Corporation Income Tax Return electronically, except for:

• insurance corporations
• non-resident corporations
• corporations reporting in functional currency
• corporations that are exempt from tax payable under section 149 of the Income Tax Act

The Canada Revenue Agency will charge a $1,000 penalty for non-compliance if a corporation that is required to file electronically does not comply with the requirement.

If you have incorporated your business or are considering incorporating to provide services to another company, see the tax implications for a personal services business.

Non-resident corporations have to file a T2 return in certain situations. See Find out if you have to file a corporation income tax return (T2).

The CRA has two types of corporation returns:

• T2 Corporation Income Tax Return – This is a nine-page return. Any corporation can use it.
• T2 Short Return – This is a two-page return plus one schedule

See Guide T4012, T2 Corporation Income Tax Guide, to check if you are eligible to use the T2 Short Return.