CRA T2 Short Return Form – Fill Out and Use This PDF

CRA T2 Short Return Form PDF Details

The CRA T2 Short Return is a simplified alternative to the full T2 Corporation Income Tax Return. The Canada Revenue Agency designed it for certain types of Canadian corporations to lower the compliance burden while maintaining proper tax filing.

Who Can Use the CRA T2 Short Return?

Two categories of corporations are eligible to file the T2 Short Return:

• Canadian-controlled private corporations (CCPCs) with a loss or nil net income for income tax purposes during the tax year
• Tax-exempt organizations under section 149 of the Income Tax Act that meet all qualifying conditions

Additional Eligibility Conditions

To qualify for the T2 Short Return, a corporation must also satisfy all of the following requirements:

• Permanent establishment in only one province or territory
• No refundable tax credits claimed other than instalment payments already made
• No taxable dividends paid or received during the tax year
• No Part XIII withholding tax transactions with non-residents
• No deductions for Canadian resource property under Division C of the Income Tax Act

Required Schedules

Corporations filing the CRA T2 Short Return must attach three core schedules. The only exception is a corporation that was inactive during the entire year with nothing to report:

• Schedule 100 – Balance Sheet Information
• Schedule 125 – Income Statement Information
• Schedule 141 – Notes Checklist

Filing Deadline and Penalties

The CRA T2 Short Return must be filed within six months of the corporation's tax year-end. For a December 31 year-end, the deadline falls on June 30 of the following year. Filing late results in a penalty of 5 percent of taxes owed, plus 1 percent for each full additional month, up to a maximum of 12 months. Corporations that repeatedly miss filing deadlines face a doubled penalty rate of 10 percent plus 2 percent per month.

Provincial and Territorial Coverage

In most Canadian provinces and territories, the T2 Short Return also serves as the provincial or territorial corporate income tax return. This means a single filing covers both federal and provincial obligations in most cases. The CRA's T4012 Corporation Tax Guide provides detailed guidance on completing the return and its required schedules. Corporations that do not meet all eligibility criteria must file the full T2 Corporation Income Tax Return instead.