T2 Short Eligibility Checker
All eight T2 Short conditions on one screen. Answer them and the checker names the condition that fails, where one does.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
Last reviewed: October 23, 2026
Answer all eight and the result appears here.
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 Eight Conditions
The T2 Short is available only to a corporation that meets every one of these. One failure puts the corporation on the full T2.
| Condition | What it means |
|---|---|
| Canadian-controlled private corporation | Throughout the tax year, not merely at the year-end |
| Nil net income or a loss | For income tax purposes, not for accounting purposes |
| One permanent establishment | A second province or a second fixed place of business ends it |
| No taxable dividends paid or received | Either direction disqualifies |
| Canadian currency | A functional currency election ends it |
| No refundable credits | Claiming one puts the corporation on the full return |
| No Ontario transitional tax debit | Applies to certain Ontario corporations |
| No section 34.2 amount | Applies where a corporation has a stub-period accrual |
The Fee Is the Same Either Way
Qualifying for the shorter form does not change the price, and failing to qualify does not raise it. Nil T2 filing is $300.00 plus HST per tax year whichever form the corporation files on.
Qualifying also does not remove a schedule that is otherwise required. The schedules are decided by what the corporation holds and who owns it, not by which form carries them.
What Changes If the T2 Short Cannot Be Used
Only the first row below changes. Everything the fee covers, every schedule the corporation needs and the route the return takes are the same on either form.
That is why the checker is worth running before anything else: it tells you which form your return goes on, and nothing else about your filing moves with the answer.
Where the Corporation Is Not Nil at All
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.
A corporation with taxable dividends received fails the T2 Short test and is also outside a nil return altogether, so the checker returning “not eligible” on that condition is worth reading twice.
Frequently Asked Questions
Does Qualifying for the T2 Short Change the Price?
No. Nil T2 filing is $300.00 plus HST per tax year whichever form the corporation files on. Qualifying for the shorter form does not lower it, and failing to qualify does not raise it.
What Happens If the Corporation Fails One Condition?
One failure puts the corporation on the full T2. The T2 Short is available only to a corporation that meets every one of the eight conditions.
Does the T2 Short Remove Schedules That Would Otherwise Be Required?
No. Qualifying does not remove a schedule that is otherwise required. The schedules are decided by what the corporation holds and who owns it, not by which form carries them.
Must the Corporation Be a CCPC for the Whole Year?
Yes. The condition is that the corporation is a Canadian-controlled private corporation throughout the tax year, not merely at the year-end.
Do Taxable Dividends Disqualify the T2 Short?
Yes, in either direction. A corporation with taxable dividends received fails the T2 Short test and is also outside a nil return altogether, so the checker returning not eligible on that condition is worth reading twice.
Does Nil Net Income Mean Nil for Accounting Purposes?
No. The condition is nil net income or a loss for income tax purposes, not for accounting purposes.
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