T2 tax form: How to file your corporation income tax return

Published Wednesday 26 November 2025

Table of contents

• What is a T2 tax form?
• Who has to file a T2 tax return?
• What information do you need?
• T2 tax return deadlines
• T2 short return
• Schedules
• Filing your T2 tax forms
• Simplify your corporate tax preparation
• FAQs on T2 tax forms

Key takeaways

• File your T2 corporate tax return within six months of your fiscal year-end to avoid penalties, and ensure you meet the mandatory electronic filing requirement for tax years starting after 2023.

• Gather all essential documentation before filing, including complete financial statements in GIFI format, shareholder details, and basic company information such as your business number and articles of incorporation.

• Complete the mandatory schedules (100, 125, and 141) for every T2 return, plus any additional schedules that apply to your specific business circumstances such as shareholder information or capital cost allowance.

• Consider using the simplified T2 Short Return if you qualify as a Canadian-controlled private corporation with no net income or loss, which reduces filing complexity from eight pages to just two pages.

What is a T2 tax form?

A T2 tax form is the mandatory corporate income tax return that all Canadian corporations must file annually to report their income and calculate taxes owed. The form is also called a "declaration of corporate income."

The T2 form is used for federal, provincial, and territorial corporation income tax returns. Corporations in Quebec or Alberta must also file a separate provincial corporate return.

• Alberta and Quebec: Require additional provincial forms because the CRA doesn't collect their provincial corporate taxes
• Standard T2: The standard T2 is a nine-page return with required schedules attached
• T2 Short: Simplified 2-page version for eligible businesses

Corporations must file their income tax forms within six months of the end of their tax year. The exact date varies because corporations can choose their own fiscal years when they first incorporate.

All tax forms and supporting documents are available in English and French.

Under the Canadian Income Tax Act, you must pay corporate taxes in instalments, usually monthly or quarterly.

If you file late or do not file electronically when required, you may have to pay a $1,000 penalty. A tax professional can help you prepare your taxes and make sure you file the correct supporting documents.

Who has to file a T2 tax return?

All Canadian corporations must file a T2 tax return under the Income Tax Act, regardless of their profit status. You must file a T2 tax return if you are any of the following:

• Non-resident corporations: Those conducting business or selling property in Canada (complex rules apply)
• Non-profit organizations: Including registered charities and sports associations
• Tax-exempt corporations: Even if they qualify for tax exemptions
• Inactive corporations: Those earning zero income still must file

What information do you need?

To prepare your T2 tax return, gather your business and financial documents in these key areas:

Basic company information:

• company name and registered address
• business number and main activities
• articles of incorporation

Shareholder details:

• names and addresses of all shareholders
• shareholders' holdings in other companies
• details about associated or bound companies

Financial documentation:

• Complete year-end financial statements in General Index of Financial Information (GIFI) format
• balance sheet and income statement
• bank and credit card statements
• investment income details and dividend information

Include information about where your company operates, both inside and outside Canada. Tell the Canada Revenue Agency about any changes to your corporation in the past 12 months, such as changes to shareholder names.

T2 tax return deadlines

T2 tax returns must be filed within six months of your fiscal year-end. File your return within three years of the end of the tax year to get a tax refund. Your deadline depends on your tax year-end:

Month-end fiscal year: File by the last day of the month six months later

• Example: December 31 year-end → June 30 deadline

Mid-month fiscal year: File on the same date six months later

• Example: December 15 year-end → June 15 deadline

If your company is in Quebec, file on time to avoid penalties from Revenu Québec.

T2 short return

The T2 Short Return is a simplified two-page alternative to the standard eight-page T2 form. To qualify, your corporation must meet these requirements:

Primary eligibility (choose one):

• Canadian-controlled private corporation (CCPC) with no net income or a loss
• Tax-exempt organization under the Income Tax Act, such as a non-profit

Additional requirements (all must apply):

• Based in a single province or territory
• No refundable tax credits claimed
• No taxable dividends paid or received
• Financial reporting in Canadian dollars only
• No Ontario transitional tax debit or section 34.2 calculation

Schedules

T2 Schedules are mandatory supporting documents that provide detailed information about your corporation's finances and activities. Every corporation must file certain schedules, while others depend on your specific business circumstances.

Mandatory schedules:

• Schedule 100: balance sheet information
• Schedule 125: income statement information
• Schedule 141: General Index of Financial Information (GIFI) additional information

Other common schedules (may be mandatory for some corporations):

• Schedule 50: shareholder information
• Schedule 7: aggregate investment income and active business income, including details about small business deductions
• Schedule 8: capital cost allowance (CCA)
• Schedule 42: unused Part 1 tax credits
• Schedule 6: summary of dispositions of capital property, including any capital gains or losses

You may also need to complete some schedules for provincial and territorial corporate tax filing.

Filing your T2 tax forms

For tax years starting after 2023, you must file your T2 electronically with the Canada Revenue Agency, unless you qualify for an exception. Here is how to get started:

Electronic filing requirements:

• apply for an Efile number and password from the Canada Revenue Agency (CRA)
• submit your completed T2 and schedules through the electronic system

Special circumstances:

• follow specific filing conditions if you are a non-resident company with Canadian business activities

Simplify your corporate tax preparation

Tax time is easier when you have the right tools. With accounting software, you can gather documents, check numbers, and fill out forms like the T2 more efficiently.

Xero helps you stay organized throughout the year, so you have everything ready when the deadline approaches. With up-to-date financial statements and records in one place, you and your accountant can easily access the information you need to file your T2 return. Start a free trial to see how easy it can be.

FAQs on T2 tax forms

Here are answers to common questions about T2 tax forms.

Can I file T2 myself?

You can prepare and file your T2 return yourself, but working with a professional can help you file accurately and find deductions or credits you may have missed.

How are T1 and T2 tax forms different?

The T1 form is for individual taxpayers to report their annual income, claim credits, and calculate the taxes owed. A T1 reports income from the calendar year and is typically filed by the following April 30. Individuals using a T1 form include personal income details, such as employment and investment income.

Use the T2 form to report your corporation’s income and expenses, and to calculate taxes owed. You must file your T2 form every year, within six months of your corporation’s fiscal year-end.

What schedules should I fill out with my T2 tax form?

This depends on your business and its circumstances. All businesses must complete:

• Schedule 100: Balance sheet information
• Schedule 125: Income statement information
• Schedule 141: GIFI additional information

You must complete these schedules for every T2 return. Other schedules may be required, depending on your business. Check with the Canada Revenue Agency or your accountant to find out which schedules you need.