Personal income tax (T1)
Call us! if you should file a tax return and what are your tax obligations. Your filing obligations may be different if you live in or leave Canada permanently or temporarily.
You live in Canada permanently
● Canadian residents
You live and work in Canada, you have to pay taxes, and want to receive credits and benefit payments
● Newcomers to Canada (immigrants)
You left another country to settle in and become a resident of Canada
● File taxes for someone who died
You become a legal representative to file a final return, request a clearance certificate, resolve benefits and credits
● Indigenous peoples
Your benefits and credits, tax exempt income under the Indian Act, COVID-related benefits, and filing a tax return
You leave Canada temporarily or permanently
Factual residents
You are a resident of Canada and you leave temporarily for work, school, a medical procedure, or vacation
● Live part-time in the U.S.
You spend part of the year in the U.S. for vacation or health reasons and maintain residential ties in Canada
● Government employees
You are a federal or provincial government employee who is posted abroad for work ● Leave Canada permanently (emigrants)
You leave Canada to live in another country and no longer have residential ties with
Canada
You live in Canada temporarily
● Non-residents of Canada
You live in Canada for less than 183 days in a year and do not have significant
residential ties in Canada
● Non-residents of Canada with rental income
You receive rental income from real and immovable properties in Canada
● Deemed residents
You live in Canada for 183 days or more in a year and do not have significant
residential ties in Canada
● International students
You are an international student studying in Canada
● Seasonal workers
You are a seasonal agricultural worker from another country
corporation income tax return (T2)
Resident corporations
All resident corporations (except tax-exempt Crown corporations, Hutterite colonies and
registered charities) have to file a T2 return for every tax year, even if there is no tax
payable. This includes:
● non-profit organizations
● tax-exempt corporations
● inactive corporations
Non-resident corporations
A non-resident corporation must file a return if, at any time in the year, one of the
following situations applies:
● it carried on business in Canada
● it had a taxable capital gain
● it disposed of taxable Canadian property
This requirement applies even if the corporation claims that any profits or gains realized
are exempt from Canadian income tax due to the provisions of a tax treaty.
Trust Return (T3)
New legislation in Bill C-32 states that certain trusts must provide additional information
regarding beneficial ownership on an annual basis. Trusts must provide beneficial
ownership information on a Schedule 15, filed along with a T3 return. These new
reporting requirements are effective for taxation years ending after December 30, 2023
and subsequent tax years. This means that some trusts may have to file a T3 return for
the first time. Others should still file their 2022 T3 returns as usual.
You have to file a T3 return if income from the trust property is subject to tax, and in the
year, the trust:
● has tax payable
● is requested to file
● is resident in Canada and has either disposed of, or is deemed to have
disposed of, a capital property or has a taxable capital gain (for example, a
principal residence, or shares)
● is a non-resident throughout the year, and has a taxable capital gain (other
than from an excluded disposition described in subsection 150(5)) or has
disposed of taxable Canadian property (other than from an excluded
disposition)
● is a deemed resident trust
● holds property that is subject to subsection 75(2) of the Act
● has provided a benefit of more than $100 to a beneficiary for the upkeep,
maintenance, or taxes on a property maintained for the beneficiary’s use (for
more information, see Line 22 – Upkeep, maintenance, and taxes of a
property used or occupied by a beneficiary in Chapter 3 of Guide T4013, T3
Trust Guide), or
● receives from the trust property any income, gain, or profit from the trust
property that is allocated to one or more beneficiaries and the trust has:
■ total income from all sources of more than $500
■ Income of more than $100 allocated to any single beneficiary
■ made a distribution of capital to one or more beneficiaries
■ allocated any portion of the income to a non-resident beneficiary
A T3 return must be filed when a trust does not have tax payable, however the trust
holds property that is subject to subsection 75(2) and from which the trust received
income, gains or profits during the year.
A T3 return must be filed when the trusts’ total income from all sources is less than
$500, however the trust made a distribution of capital to one or more beneficiaries.
You may not have to file a T3 return if the estate is distributed immediately after the
person dies, or if the estate did not earn income before the distribution. In these cases,
you should give each beneficiary a statement showing their share of the estate.