Trust Income Tax Calculator – Canada

Trust Income Tax Calculator – Canada

Here's a table summarizing key information about trust income tax in Canada:

AspectDetails
Filing Requirements- Trusts must file T3 Trust Income Tax and Information Return annually for tax years ending after December 30, 202313
- Includes express trusts resident in Canada and certain non-resident trusts13
- Bare trusts now required to file12
Deadline- 90 days after the trust's tax year-end4
- For calendar year trusts: March 30, 2024 for the 2023 tax year34
New Disclosure Requirements- Identity and details of trustees, beneficiaries, settlors, and protectors123
- Name, address, date of birth, jurisdiction of residence, and taxpayer ID number23
Exemptions- Graduated rate estates (GREs)3
- Trusts that existed for less than 3 months1
- Trusts holding less than $50,000 in certain assets12
- Registered charities, mutual fund trusts, etc.12
Penalties- 5% of trust property value or $2,500 (whichever is higher) for gross negligence1
- Late-filing penalty waived for bare trusts for 2023 tax year13
Key Forms- T3 Trust Income Tax and Information Return4
- T3 Schedule 15 (Beneficial Ownership Information)23
Residence Rules- Based on central management and control2
- Deemed resident rules for certain foreign trusts with Canadian connections2

This table provides a high-level overview of the key aspects of trust income tax in Canada, focusing on the new reporting requirements effective for the 2023 tax year and beyond.

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