Residency and other information

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, go to Interpretation Bulletin IT447 - Residence of a Trust or Estate.

Income tax return filing requirements

The trustee of a non-resident trust has to file a T3RET, T3 Trust Income Tax and Information Return (T3 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 allocated, 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 allocated, paid, or payable to any single beneficiary; or
    • the trust allocated any portion of the income to a non-resident beneficiary.
    
    
• A T3 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 return.
• If the correct amount of Part XIII tax has not been deducted, contact the International Tax Services Office for the rules that apply.

Disposing of or acquiring certain 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 go to the section called "Disposing of or acquiring certain Canadian property".

Filing due date

A T3 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 return, please go to T3RET, T3 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
613-952-8753

Fax number
613-952-3845

You may write to the International Tax Services Office at:

International Tax Services Office
Canada Revenue Agency
Post Office Box 9769, Station T
Ottawa, ON  K1G 3Y4
CANADA

Forms and publications

• T4013, T3 Trust Guide
• Forms and publications - Trusts
• IT447 – Residence of a Trust or Estate
• T3RET, Trust Income Tax and Information Return

Related topics

• Foreign reporting
• Foreign spin-offs
• What to do when someone has died