Do I have to file a T2 if my corporation made no money?

Last reviewed 2026-10-28 by the T2Returns review team · 4 min read

Short answer: Yes. Every resident corporation files a T2 each year, even with no income and no tax owing.

Yes. Every corporation resident in Canada has to file a T2 for every tax year, even when it earned nothing and owes no tax. CRA says this includes "non-profit organizations, tax-exempt corporations, and inactive corporations." (CRA: Who has to file a T2)

Who doesn't have to file

CRA lists only three exceptions (same source):

Tax-exempt Crown corporations
Hutterite colonies
Corporations that were registered charities for the whole year (they file a T3010 instead)

If your corporation exists on paper, it files. That includes a holding company that did nothing and a business you incorporated but never started.

What a "nil return" actually is

"Nil return" isn't a CRA form name. It's the everyday term for a T2 that reports no income and no tax. The return still has to be complete and filed on time.

For a corporation that was inactive all year and has no balance sheet or income statement figures to report, CRA no longer requires Schedules 100, 125 and 141 (the GIFI financial statement schedules), though it accepts them if filed. (CRA: Preparing your financial statements using GIFI)

If your corporation had any numbers, even bank fees, a shareholder loan or the cost of incorporating, it has financial information to report and the GIFI schedules come back in.

It has to be filed electronically

Most corporations must now file their T2 electronically, and CRA states it "will charge a $1,000 penalty for non-compliance." (CRA: T4012 T2 Corporation Income Tax Guide) A paper nil return is no longer a safe shortcut.

Example

Northpeak Holdings Inc. was incorporated in 2025 to buy a building that never closed. In 2026 it had no bank account activity and no assets. It still files a T2 for 2026 within six months of its year-end, reporting nil, and can skip the GIFI schedules because it has nothing to put on them.

Why not just skip it?

A missing return can lead to late-filing penalties if tax turns out to be owing, CRA demands to file, and problems later when you want to use the company, sell it or close it. Filing nil each year keeps the corporation in good standing with CRA.

FAQ

My corporation lost money. Is that a nil return?

No. A loss is real financial activity and needs full GIFI statements. Filing it also preserves the loss to use against future profits.

I want to close the corporation. Do I stop filing?

Not until it's formally dissolved and its final return is filed. Ask us about a final-year return.

How much does a nil T2 cost with T2Returns?

$249, filed within 10 business days of a complete file.

General information, not tax advice. Rules change; check the linked CRA pages for the current version.