Guide to T5013: Partnership Information Return for

What Is the T5013 Partnership Information Return?

Quick tip: download the official T5013 first, then fill it while following this guide: Download T5013 form (official CRA).

The T5013 is a Partnership Information Return that Canadian partnerships must file with the Canada Revenue Agency (CRA). Unlike corporations, partnerships in Canada do not pay income tax at the partnership level. Instead, the partnership's income, losses, and other amounts "flow through" to the individual partners, who then report these amounts on their own personal or corporate tax returns.

The T5013 return serves as an information filing that tells the CRA how the partnership's income and deductions are allocated among the partners. Each partner also receives a T5013 slip (Statement of Partnership Income) showing their share, which they use to complete their own tax return.

Why This Matters for Newcomers

If you've started a business with a partner in Canada, or if you've joined an existing partnership, understanding the T5013 is essential. Partnerships are a common business structure in Canada, and the filing requirements are different from those of corporations or sole proprietorships. As a newcomer, you need to know your obligations to stay compliant with Canadian tax law.

Who Must File the T5013?

A partnership must file a T5013 return if, at any time during the fiscal period, it meets any of the following criteria:

• The partnership has more than five members at any time during the fiscal period
• Any partner is a corporation or a trust
• Any partner is another partnership (tiered partnerships)
• The partnership has total absolute value of revenues plus expenses exceeding $2 million
• The partnership has total absolute value of assets exceeding $5 million
• The partnership is a tax shelter
• The CRA has specifically requested the partnership to file

Even if a partnership is not required to file a T5013 return, it is still a best practice to do so. Filing provides a clear record of income allocation among partners and can prevent disputes and CRA inquiries.

Types of Partnerships in Canada

Before diving into the T5013 details, it's helpful to understand the types of partnerships:

• General partnership: All partners share in the management, profits, losses, and liabilities of the business equally (unless otherwise agreed).
• Limited partnership: Has one or more general partners (who manage the business and have unlimited liability) and one or more limited partners (who contribute capital but have limited liability and typically don't participate in management).
• Limited liability partnership (LLP): Available in some provinces, typically for professionals (lawyers, accountants). Partners have some protection from the negligence of other partners.

What Information Is Required?

The T5013 return consists of several schedules and forms. The main components include:

Partnership Identification

• Partnership name and business number
• Address
• Type of partnership
• Fiscal period end date
• Principal business activity (described using a NAICS code)

Financial Information

• Income statement: Revenues, cost of goods sold, and expenses
• Balance sheet: Assets, liabilities, and partners' equity
• Net income or loss: The partnership's bottom line for the fiscal period

Allocation to Partners

The most critical part of the T5013 is the allocation schedule, which shows how the partnership's income, deductions, and credits are divided among the partners. Common amounts allocated include:

• Net business income or loss
• Capital gains and losses
• Rental income or loss
• Interest and dividend income
• Foreign income and foreign tax paid
• Charitable donations made by the partnership
• Investment tax credits

T5013 Slips

The partnership must prepare a T5013 slip for each partner showing their allocated share of partnership income and deductions. These slips must be provided to partners and filed with the CRA.

Filing Deadlines

The T5013 return must be filed within five months after the end of the partnership's fiscal period. For most partnerships with a December 31 fiscal year-end, the deadline is March 31 of the following year.

T5013 slips must be distributed to partners by the same deadline so that partners have the information they need to file their own tax returns.

Note: Most partnerships that have at least one individual member are required to have a December 31 fiscal year-end. Partnerships consisting entirely of corporations may choose a different fiscal year-end.

How to File the T5013

The T5013 must be filed electronically if the partnership has more than five T5013 slips to file. Electronic filing is done through:

• CRA's Internet File Transfer (XML): The most common method, using commercial tax software that produces the required XML file.
• CRA's T5013 Web Forms: An online tool for partnerships with a small number of slips.

Paper filing is only permitted if you have five or fewer T5013 slips to file.

Steps to File

1. Prepare your financial statements: Ensure the partnership's books are up to date and reconciled for the fiscal period.
2. Calculate each partner's share: Based on the partnership agreement, allocate income, losses, deductions, and credits to each partner.
3. Complete the T5013 return and schedules: Use tax software or the CRA's web forms to complete the return.
4. Prepare T5013 slips: Generate a slip for each partner.
5. Distribute slips to partners: Send each partner their T5013 slip before the filing deadline.
6. File with the CRA: Submit the return and slips electronically.

Partnership Agreement and Income Allocation

The partnership agreement is the key document that determines how income, losses, and deductions are allocated among partners. If there is no written partnership agreement, the default rules under provincial partnership legislation typically allocate everything equally among partners.

For newcomers entering a partnership, it is highly recommended to have a written partnership agreement that clearly specifies:

• Each partner's capital contribution
• How profits and losses are shared
• How decisions are made
• What happens if a partner wants to leave
• How disputes are resolved

Penalties for Late Filing

If the T5013 return is filed late, penalties apply:

• $25 per day for each day the return is late, with a minimum penalty of $100 and a maximum of $2,500 per return
• If the partnership has more than five partners, the penalty can be much higher — $100 per partner per month (maximum 24 months)

These penalties can add up quickly, especially for larger partnerships. File on time to avoid unnecessary costs.

How Partners Report T5013 Income

Once you receive your T5013 slip, you report the amounts on your personal tax return (T1) as follows:

• Net business income: Report on line 13500 (business income) or line 13700 (business income from a limited partnership)
• Rental income: Report on line 12600
• Capital gains: Report on Schedule 3
• Interest and investment income: Report on line 12100
• Foreign income: Report and claim the foreign tax credit on Form T2209

If you are a limited partner, there are additional rules that may limit the amount of partnership losses you can deduct. These are called the "at-risk" rules and are calculated on Form T5013-A.

Tips for Newcomers in Partnerships

1. Get a partnership agreement in writing: This is your most important step. Verbal agreements are difficult to enforce and can lead to disputes.
2. Register your partnership: Most provinces require you to register your partnership name. Check with your provincial registry.
3. Keep separate business records: Maintain clear records of all partnership transactions, separate from your personal finances.
4. Understand your tax obligations: As a partner, you are responsible for reporting your share of partnership income, even if the partnership didn't distribute cash to you. Tax is based on allocation, not distribution.
5. Consider professional help: Partnership tax can be complex. A CPA experienced with partnerships can ensure the T5013 is filed correctly and that each partner's share is properly calculated.

Resources

• T5013 Guide: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4068.html
• T5013 Forms: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t5013.html
• CRA Partnership Filing: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/partnership-filing-return.html
• WelcomeAide: Visit https://welcomeaide.com for more business and tax guides for newcomers.

Partnerships offer a flexible and relatively simple way to start a business in Canada with a partner. Understanding the T5013 filing requirements from the outset ensures you and your partners stay compliant and avoid costly penalties. Keep good records, communicate openly with your partners, and don't hesitate to seek professional advice.

Download This Form

Before you submit anything, download the latest official file here: Download T5013 form (official CRA). Always use the latest version.

Related internal guides

• IMM 5257 guide
• IMM 1294 guide
• IMM 1295 guide
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• IMM 5532 guide

Official external resources

• Download T5013 form (official CRA)
• IRCC forms and guides library
• IRCC document checklists
• CRA forms and publications
• IRCC processing times

Related Resources

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Official Government Sources

• Canada Revenue Agency (CRA)
• Government of Canada Taxes
• File an Income Tax Return
• Financial Consumer Agency of Canada
• Government of Canada Finance Services
• GST/HST for Businesses