Retained Earnings Rollforward Calculator
Opening, plus net income, less dividends, gives closing. The figure the next return has to open from, and what it says about nil status.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
Last reviewed: October 29, 2026
Enter all three figures. Use 0 where there was nothing.
Gondaliya CPA Professional Corporation is a registered EFILE electronic filer. Returns are prepared and transmitted in Canada. Credentials are never shared and never used offshore.
The Whole Calculation Is One Line
Opening retained earnings, plus net income for the year, less dividends declared, gives closing retained earnings. There is nothing else in it, and the arithmetic can be checked by hand in a second.
What makes it worth a page is not the arithmetic. It is that the closing figure is the number the next return has to open from, and a return that does not carry it forward is rejected rather than filed.
| Line | What it does to the figure |
|---|---|
| Opening retained earnings | The starting point |
| Net income for the year | Added |
| Dividends declared | Subtracted |
| Closing retained earnings | The result, and what the next return opens from |
On a Quiet Year the Figure Does Not Move
A year with no net income and no dividends closes exactly where it opened. That is the ordinary shape of a nil year: the income statement reports zeroes while the balance sheet still carries real numbers.
Retained earnings brought forward are one of three balances that commonly sit on a nil return’s balance sheet, alongside share capital issued on incorporation and a shareholder loan. The nil GIFI balance sheet checker tests which of them apply.
Net Income or a Dividend Ends the Nil Year
Either figure being something other than zero means the year was not nil. A dividend declared is activity whether or not it was paid in cash, and net income is activity by definition.
A holding corporation with investment income, a rental corporation and a corporation that paid or received a dividend are not nil. Those are handled by Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
The nil return versus full return checker works through the whole test rather than these two lines.
A Deficit Is the Same Calculation
Where the closing figure is negative the corporation has a deficit rather than retained earnings. It sits in the same place on Schedule 100 and carries forward the same way.
A corporation that spent money before it earned any, which is most corporations in their first year or two, will show a deficit. It is unremarkable and it does not change what is filed.
Frequently Asked Questions
How is closing retained earnings calculated?
Opening retained earnings, plus net income for the year, less dividends declared. The closing figure is what the next return opens from.
Does retained earnings change on a nil year?
No. With no net income and no dividends the closing figure equals the opening one, and the balance simply carries forward.
Where does this figure go on the return?
On Schedule 100, the balance sheet, reported through the coded GIFI format. A nil year files it carrying the balances it holds.
What if the figure is negative?
That is a deficit rather than retained earnings. It sits in the same place and carries forward the same way, and it is common in a corporation’s first years.
Does a dividend end a nil year even if unpaid?
A dividend declared is activity, so that year is not a nil year. Those returns are handled by Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
Nil T2 Filing, $300.00 plus HST per tax year
Type your corporation name, pick your unfiled years, pay, and sign Form T183CORP on a secure screen. Your CRA confirmation is emailed within 3 business days.
Start Nil T2 Filing NOW