CRA forms
The T5013 Partnership Information Return Explained
$2 millionin revenue plus expenses, or $5 million in assets: one of the tests that makes a partnership file a T5013 information return.
Sources checked October 20263 min read
Why partnerships file at all
A partnership does not pay income tax. Its income or loss is worked out at the partnership level and allocated to the partners, who report their shares on their own returns. The T5013 partnership information return, the financial return with its schedules plus a T5013 slip for each partner, is how the CRA sees that allocation.
Key points
- A partnership pays no income tax itself; its partners report their shares
- Required above $2 million in revenue plus expenses or $5 million in assets, among other tests
- Each partner receives a T5013 slip
- Due March 31, five months after the year end, or the earlier of the two
Who has to file
A partnership that carries on business in Canada, or a Canadian partnership, files if, at the end of the fiscal period, the absolute value of its revenues plus the absolute value of its expenses is more than $2 million, or it has more than $5 million in assets. It also files if, at any time in the period, any of these applies:
- it is part of a tiered structure, with another partnership as a partner or as a partner in one
- it has a corporation or a trust as a partner
- it invested in flow through shares of a resource company that renounced expenses to it
- the CRA has asked for a return in writing
Due dates
The $2 million test adds revenues and expenses together rather than netting them, so a busy partnership with a modest profit can still be caught. Partners get their slips by the same date as the return, more than five slips should be filed electronically, and late slips draw penalties.
| Partners | Due |
|---|---|
| All individuals throughout the period | March 31 after the calendar year in which the fiscal period ends |
| All corporations throughout the period | Five months after the end of the fiscal period |
| Any other mix | The earlier of those two dates |
What partners do with the slip
Each partner reports the amounts from their T5013 slip on their own return: an individual on Form T2125 for business income, starting from the slip, and a corporation on its T2. Expenses a partner paid personally that the partnership did not reimburse can be deducted on the partner's own return, in Part 6 of Form T2125 for an individual.
Quick answers
Does a two person partnership need to file a T5013?
Only if it meets one of the tests: more than $2 million in revenue plus expenses or $5 million in assets, a corporate or trust partner, a tiered structure, or a CRA request.
When is the T5013 due if all partners are individuals?
March 31 after the calendar year in which the partnership's fiscal period ended.
Does the partnership pay tax on its income?
No. The income is allocated to the partners, who pay tax on their shares.
Related pages
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.