A partnership by itself does not pay income tax on its operating results and does not file an annual income tax return. Instead, each partner includes a share of the partnership income or loss on a personal, corporate, or trust income tax return.

Each partner also has to file either financial statements or one of the forms referred to in the section on sole proprietorship (or a computer-generated version of one of these forms). You do this whether or not you actually received your share in money or in credit to your partnership's capital account.

A partnership has to file a partnership information return if, throughout the fiscal period, it has six or more members or if one of its members is a member of another partnership.

For more information, see the Canada Revenue Agency’s T4068, Guide for the Partnership Information Return, T5013SUM, Partnership Information Return, IC89-5RSR, Special Release – Partnership Information Return and IT90, What is a Partnership? and the Guide for Canadian Small Businesses. 

For GST/HST purposes, a partnership is considered to be a separate person and must file a GST/HST return and remit tax where applicable.