Business

How to File a T2 Nil Return in Canada (Online Only Now)

By Gopi · Last verified October 13, 2026

A T2 nil return is the corporate tax return you file when your corporation had no income, no expenses and no tax to pay. Many owners assume they can skip it. You can’t: every corporation files a T2 every year. In my first year, my corporation had nothing to report, and I filed a nil T2 on paper. That’s no longer allowed for most corporations, and a paper return can now cost you a $1,000 penalty.

In short

Who files: generally every resident corporation, every tax year, even with no income and no tax payable, including inactive corporations.
When: within six months of your corporation’s year-end (December 31 year-end → due June 30).
How: online only for tax years starting after 2023, using CRA-certified software. Paper can bring a $1,000 penalty.
Cost: certified software ranges from paid to free; CloudTax T2 Basic, one of the least expensive I’ve found, offers “Pay What You Want” (including $0) for eligible nil returns. A tax professional may charge a similar amount and add advice.
Not the same as: your $12 annual return to Corporations Canada, or a payroll nil remittance.

Your T2 nil return checklist

1. Confirm your corporation has nothing to report
2. Work out your deadline
3. Choose: certified software or a tax professional
4. File online and keep your confirmation
5. Don't forget the other yearly filings

Tick each step as you finish it. Your ticks stay on this device only.

Video thumbnail: How to file a T2 nil report, with the latest update

What is a T2 nil return?

My take

“Nil” means there’s nothing to report: no income, no expenses, no tax owing. But the return itself is still required. The CRA expects a T2 from every corporation, every year.

The CRA says that generally all resident corporations, including non-profit organizations, tax-exempt corporations and inactive corporations, must file a T2 return every tax year, even if there’s no tax payable (CRA). A nil return is common in a corporation’s first year, or in a year when the business was set up but not yet trading.

When is the T2 nil return due?

Within six months after the end of your corporation’s tax year (CRA):

Year-end	T2 due
December 31	June 30
March 31	September 30
November 30	May 31

Put the date in your calendar the day you incorporate.

Paper is no longer accepted

My take

This is the change that catches people out. My first nil T2 went in on paper, which was simple and free at the time. Today, the same return has to be filed online.

For tax years starting after 2023, all corporations must file their T2 electronically, except insurance corporations, non-resident corporations, corporations reporting in a functional currency and those exempt under section 149 of the Income Tax Act. A corporation that’s required to file electronically and doesn’t can be charged a $1,000 penalty (CRA). That applies to nil returns too.

How to file a T2 nil return online

You have two good routes.

Route 1: do it yourself with CRA-certified software

Pick a product from the CRA’s certified T2 software list. Only certified software can file a T2 online. Prices vary, so compare what each charges for a corporation with no activity. One of the least expensive I’ve found is CloudTax T2 Basic, which is on the CRA’s certified list; CloudTax says nil returns are “Pay What You Want”, including the option to pay $0, for eligible corporations (CloudTax). Check its eligibility and current price before you start. (I’m not paid by CloudTax.)
Gather your details: your corporation’s Business Number, year-end, and the access details the software asks for to file with the CRA.
Fill in the return: the software walks you through it; for a nil return most amounts are zero.
File online through the CRA’s Corporation Internet Filing service and keep the confirmation number with your records.

Route 2: ask a tax professional

My take

Many people want to file the nil return themselves to save money. Before you do, ask a few tax professionals what they’d charge for a nil T2. Some may charge about what you’d pay for software, and you also get professional guidance, and a relationship with someone who already knows your business when it takes off and the returns stop being nil.

A professional can also confirm that your year really is “nil”: for example, if you paid any expenses or put money into the corporation, there may be something to report.

T2, annual return and payroll nil remittance: three different things

Filing	Who it goes to	What it’s for
T2 corporation income tax return	CRA	Your corporation’s yearly tax return, even when it’s nil
Annual return ($12 online)	Corporations Canada (federal)	Confirms your corporation is still active, or it can be dissolved
Payroll nil remittance	CRA	Only if you have a payroll account but paid no one in a period

Each one is explained, with my videos, in my start-a-business guide.

Questions people ask

Do I need to file a T2 if my corporation had no income?

Yes. Generally every resident corporation files a T2 every tax year, even with no income and no tax payable.

Can I still file a nil T2 on paper?

Not for most corporations. For tax years starting after 2023, T2 returns must be filed electronically, and filing on paper can bring a $1,000 penalty.

When is my T2 nil return due?

Six months after your corporation’s year-end. For a December 31 year-end, that’s June 30.

Is filing a T2 nil return free?

It can be. CRA-certified software ranges from paid to free for simple returns: CloudTax T2 Basic, for example, says eligible nil returns are “Pay What You Want”, including $0. A tax professional may charge a similar amount while giving you advice. Compare before you choose.

My own experience, not tax advice. Rules, deadlines and software change: check the CRA pages linked above, and speak to a tax professional about your corporation.

What next

See every yearly filing in my start-a-business guide, or follow the Business guide.

Spot something outdated? Tell me in the YouTube comments on the related video, or use the contact form.