Trust Income Tax Calculator – Canada
Here's a table summarizing key information about trust income tax in Canada:
Aspect | Details |
---|---|
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.