Trusts

• Residency
• Income tax return filing requirements
• Selling or disposing of taxable Canadian property
• Filing due date
• How to reach us
• For more information...
  • IT-447, Residence of a Trust or Estate
  • T3RET, Trust Income Tax and Information Return
  • T3 Trust Guide
  • Foreign reporting
  • Foreign spin-offs

Residency
A trust may be a resident of Canada or a non-resident of Canada.

Residency of a trust must be determined according to the circumstances of each case.

A trust is usually considered to reside in the same country as the trustee, executor, administrator, or other legal representative who manages the trust or controls its assets.

• For more information, see IT-447, Residence of a Trust or Estate.

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Income tax return filing requirements
The trustee of a non-resident trust has to file a T3 Trust Income Tax and Information Return if:

• the trust is in receipt of certain Canadian-source income from the trust property that is subject to tax; and
• the trust:
  • has tax payable;
  • has a taxable capital gain or disposed of a capital property;
  • provided a benefit of more than $100 to a beneficiary for upkeep, maintenance, and taxes for property maintained for the beneficiary's use; or
  • receives from the trust property any income, gain, or profit that is designated, paid or payable to one or more beneficiaries and also:
    • the trust has total income of more than $500 on line 20 of page 2 of the T3 return;
    • the trust has income of more than $100 designated, paid, or payable to any single beneficiary;
    • or
    • the trust allocated any portion of the income to a non-resident beneficiary.
    
    
• A T3 income tax return may not have to be filed if:
  • the estate is distributed immediately after the person is deceased; or
  • the estate didn't earn income before the distribution.

In these cases, each beneficiary should be given a statement showing his or her share of the estate.

If the trust's only source of income is investment income (e.g., interest or dividends), Part XIII tax should have been deducted at the time the income was paid or credited to the trust.

• If the correct amount of Part XIII tax has been deducted, the trustee is not required to file a T3 income tax return.
• If the correct amount of Part XIII tax has not been deducted, contact the International Tax Services Office for the rules that apply.

Selling or disposing of taxable Canadian property
For the procedures you must follow if you sell or dispose, or plan to sell or dispose of taxable Canadian property (such as real estate, business property, or unlisted shares of a Canadian corporation) please see the section called Selling or disposing of certain Canadian property.

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Filing due date
A T3 income tax return has to be filed no later than 90 days after the end of the trust's tax year.

If you have to file a T3 trust return, please see the T3RET, Trust Income Tax and Information Return.

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How to reach us
If you have questions about non-resident trusts, call the International Tax Services Office at one of the following numbers:

Canada and the U.S.
1-800-561-7761, ext 9150

Outside Canada and the U.S. (collect calls accepted)
(613) 952-8753

Ottawa area
952-8753

Fax number
(613) 952-3845

You may write to the International Tax Services Office at:

2204 Walkley Road
Ottawa, Ontario
Canada
K1A 1A8

Regular hours of service

Monday to Friday (except holidays)
8:15 a.m. to 5 p.m.
(Eastern Time)