T5 Statement of Investment Income

T5 Slip

T5 slip is used to report the various types of investment income that residents of Canada have to report on their income tax and benefit returns. Do not report investment income paid to non-residents of Canada on a T5 slip. For information about payments to non-residents, see Payments to non-residents of Canada.

Year

Enter the four digits of the calendar year during which the recipient earned the investment income.

Box 10 – Actual amount of dividends other than eligible dividends

For dividends paid after 2005, enter the actual amount of dividends other than eligible dividends, or the amount we deem to be dividends other than eligible dividends, paid by a Canadian corporation.

For recipients who are individuals resident in Canada (other than a trust that is a registered charity), the dividends must be paid by a taxable Canadian corporation.

Do not include:

Dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange (we treat these amounts as interest, see box 13)

Dividends paid to individuals who are not eligible for the federal dividend tax credit (see box 14) eligible dividends (see box 24)

Taxable dividends, other than capital gains dividends, paid by a mortgage investment corporation to any of its shareholders (we treat these amounts as interest, see box 13)

capital gains dividends (see box 18)

Note: You do not need to submit a T5 slip if capital gains dividends are the only dividends.

Box 11 – Taxable amount of dividends other than eligible dividends

Complete box 11 only for individuals resident in Canada (other than a trust that is a registered charity). Enter in box 11 the total of the amount you reported in box 10 plus the taxable gross-up amounts.

For dividends paid in 2019 or later, the taxable gross-up amount is 15% of the amount of dividends reported in box 10. For dividends paid in 2018 or before, use the appropriate gross-up factor in the table under "Reporting requirements" at Unclaimed amounts: Dividends or interest.

Do not enter an amount in box 11 if the dividends entered in box 10 are paid to a corporation.

Box 12 – Dividend tax credit for dividends other than eligible dividends

Complete box 12 only for individuals resident in Canada (other than a trust that is a registered charity). For dividends paid in 2019 or later, the amount you enter in box 12 is 9/13 of the taxable gross-up amount, or 9.0301% of the amount you entered in box 11. For dividends paid in 2018 or before, use the appropriate gross-up factor in the table under “Reporting requirements” at Unclaimed amounts: Dividends or interest. Do not enter an amount in box 12 if the dividends entered in box 10 are paid to a corporation.

Box 13 – Interest from Canadian sources

Enter the following amounts, as long as you did not previously report them:

Interest on a fully registered bond or debenture

Interest on money loaned to or on deposit with, or interest on any kind of property placed with, a corporation, association, organization, institution, partnership, or trust

Interest on an account with an investment dealer or broker

Interest an insurer paid in connection with an insurance policy or annuity contract

Interest on an amount owing as compensation for property that has been expropriated

The interest part of Blended payments unless paid by an individual or if paid by a corporation, association, organization, institution, partnership, or trust

Dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange

taxable dividends, other than capital gains dividends, that a mortgage investment corporation paid to any of its shareholders

Do not include:

Interest from a source outside Canada (see box 15)

The interest part of a blended payment made by an individual

Interest one individual pays to another, such as interest paid on a private mortgage (this does not include investment dealers or brokers making payments for client program accounts)

Interest paid on loans from banks, financial institutions, or other institutions whose usual business includes lending money the accrued income from an annuity described under former paragraph 56(1)(d.1), or accrued income of certain life insurance policies (see box 19)

For more information on accrued interest on investment contracts, see Accrued interest. For more information on unclaimed interest, see Unclaimed amounts.

Box 14 – Other income from Canadian sources

Identify a box in the "Other information" area as box 14. In the "Amount" box, enter, in Canadian currency, the other income from Canadian sources.

Other income includes:

Taxable dividends and deemed dividends (see Deemed dividends) paid to an individual by a corporation resident in Canada that is not a taxable Canadian corporation

Amounts reported by life insurers, to be included in a policyholder's income

Amounts distributed from an eligible funeral arrangement (EFA) after 1995 to a taxpayer as a return of funds

An EFA is an arrangement a qualifying person establishes and maintains solely to fund funeral or cemetery services for one or more individuals. The custodian then reports the amounts distributed from the arrangement after 1995 that are not payments for providing funeral or cemetery services and that do not reflect contributions previously made. The custodian can be the trustee of any trust governed by an EFA. If a trust is not involved, the custodian can be any person who receives a deposit under the EFA for providing funeral services. This person has to be licensed or authorized under the laws of a province or territory to provide funeral or cemetery services for individuals.

Box 16 – Foreign tax paid

Identify a box in the "Other information" area as box 16. In the "Amount" box, enter the foreign income tax, if any, that was withheld from the gross foreign income you reported in box 15. Report the amount of the foreign income tax withheld in Canadian currency. The recipient of the T5 slip will need to know this amount to calculate their federal, provincial, or territorial foreign tax credits. If you cannot report the amount in Canadian currency, see box 27.

Box 17 – Royalties from Canadian sources

Identify a box in the "Other information" area as box 17. In the "Amount" box, enter the royalties paid during the year. Royalties include payments for the use of a work or invention, or a right for production from natural resources.

Box 18 – Capital gains dividends

Enter the amount of capital gains dividends that we consider a capital gain and that were paid by:

an investment corporation

a mortgage investment corporation

a mutual fund corporation

Box 19 – Accrued income: Annuities

Identify a box in the "Other information" area as box 19, and in the "Amount" box, enter:

the accrued earnings on a life insurance policy to be included in a policyholder's income under section 12.2

the annuity payments to be included in income under former paragraph 56(1)(d.1) for annuity contracts issued before 1990

Box 21 – Report code

Enter on each slip one of the following codes to indicate whether the slip is:

"O" original

"A" amended (changing the financial data or identification information)

"C" cancelled

When using code "A" or "C," enter a description at the top of the T5 slip (for example, "AMENDED" or "CANCELLED") and include a letter of explanation when you file a copy of the slip with us. For more information, see Amending, cancelling, adding or replacing T5 slips.

Box 22 – Recipient identification number

If the recipient is an individual (other than a trust), enter the individual's social insurance number (SIN). For interest credited to a joint account, enter the SIN of only one of the individuals.

You have to make a reasonable effort to get the recipient's SIN. If you do not, you may be liable to a $100 penalty for each time you do not provide the SIN on a slip. However, when a person tells you that he or she does not have a SIN but is applying for one, make sure you complete and file the return before the filing deadline. If you have not received the recipient's SIN by the time you prepare the T5 slip, leave box 22 blank.

Note

If you are reporting a payment made in trust to an institution for an individual (for example, a payment of interest made to the trustee of a self-directed RRSP), do not enter the individual's SIN in box 22.

If the recipient is a trust, enter the trust account number.

If the recipient is a business (sole proprietor, partnership, or corporation), enter the recipient’s 15 character program account number in this area.

The program account number consists of three parts:

the nine-digit business number (BN) identifies the business

the two-letter program identifier identifies the type of program account

the four-digit reference number identifies each account in a program that a business may have

Box 23 – Recipient type

Enter one of the following codes to identify the recipient to whom the investment income was paid:

"1" for an individual

"2" for a joint account (two or more individuals)

"3" for a corporation

"4" for an association, trust (RRSP trustee, fiduciary-trustee, nominee, or estate), club, or partnership

"5" for a government, government enterprise, or international organization

Box 24 – Actual amount of eligible dividends

Enter the actual amount of eligible dividends, or the amount we deem to be eligible dividends. Eligible dividends are paid after 2005 by corporations resident in Canada to individual shareholders resident in Canada.

Among other requirements, to be eligible dividends, taxable dividends must have been designated as such by the corporation paying the taxable dividend.

You can find more information about eligible dividends in Guide T4012, T2 Corporation – Income Tax Guide.

Do not include:

Dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange (we treat these amounts as interest, see box 13)

Capital gains dividends (to report capital gains dividends, see box 18)

Dividends paid to individuals who are not eligible for the federal dividend tax credit (see box 14)

Dividends other than eligible dividends (see box 10)

Taxable dividends, other than capital gains dividends, paid by a mortgage investment corporation to any of its shareholders (we treat these amounts as interest, see box 13)

Box 25 – Taxable amount of eligible dividends

Complete box 25 only for individuals resident in Canada (other than a trust that is a registered charity). Enter in box 25 the total of the amount from box 24 plus the taxable gross-up amount.

For the years 2019 or later, the taxable gross-up amount is equal to 38% of the amount of dividends reported in box 24.

For the years 2018 or before, use the appropriate gross-up factor in the table under “Reporting requirements” at Unclaimed amounts: Dividends or interest.

Do not enter an amount in box 25 if the dividends entered in box 24 are paid to a corporation.

Box 26 – Dividend tax credit for eligible dividends

Complete box 26 only for individuals resident in Canada (other than a trust that is a registered charity).

For the years 2012 or later, the amount you enter in box 26 is 15.0198% of the taxable amount you entered in box 25; or 6/11 of the added gross-up amount as per instructions for this same box 25.

For the years 2011 or before, use the appropriate gross-up factor in the table under “Reporting requirements” at Unclaimed amounts: Dividends or interest.

Do not enter an amount in box 26 if the dividends entered in box 24 are paid to a corporation.

Box 27 – Foreign currency

Leave this area blank if you are reporting amounts in Canadian dollars.

If you cannot report amounts in Canadian dollars, identify the foreign currency according to the International Standard (ISO) 4217 called Codes for the Representation of Currencies and Funds. Enter the appropriate three-character alphabetic or numeric codes. If possible, use the alphabetic codes. For example:

AUD – Australia, dollar

DKK – Denmark, krone

Note

If you are filing electronically, you must use the alphabetic code.

When you report amounts in foreign currency, keep the following rules in mind:

Do not combine different foreign currency types on a T5 slip. Report only one type of foreign currency on each slip.

Print the name of the foreign currency on the slip (for example, U.S. DOLLARS) under generic boxes 15 and 16, for the recipient's benefit.

If you file a paper T5 information return and leave box 27 blank, we will process the amounts on the T5 slips as Canadian dollars. When completing your T5 Summary, you only have to enter one total income amount, whether or not the T5 slips are made up of different currency types.

Box 28 – Transit

If you are reporting for a financial institution or any similar business, enter the recipient's transit code or branch identification code (up to eight characters) in this area.

Box 29 – Recipient account

If you can identify the recipient by an account number or policy number, enter the appropriate characters (up to 12) in this area.

Box 30 – Equity linked notes interest

Identify a box in the “Other information” area as box 30. In the “Amount” box, enter the total interest that that is deemed to accrue pursuant to subsection 20(14.2) of the Act from the assignment or transfer of linked notes.

A linked note is a debt obligation, most often issued by a financial institution, the return on which is linked in some manner to the performance of one or more underlying assets or indexes over the term of the obligation. For assignments or other transfers of debt obligations (that are at any time described in paragraph 7000(1)(d) of the Income Tax Regulations) that occur after 2016, any gain realized at the time of the transfer is deemed to be interest that accrued on the debt obligation for a period commencing before the time of the transfer and ending at the time of the transfer. For information on calculating the amount of this deemed interest, see subsection 20(14.2) of the Income Tax Act.

Other information

The "Other information" area in the middle of the T5 slip has blank boxes for you to enter codes and amounts that relate to other income from Canadian sources, foreign income, foreign tax paid, royalties from Canadian sources, accrued income, and annuities. You can also use this area for any other entries that apply.

The boxes are not pre-numbered as in the top part of the slip. Enter the following codes that apply to the recipient.

Note:If more than three codes apply to the same recipient, use an additional T5 slip.

Recipient's name and address

Enter the information in the white area provided.

If more than one recipient is entitled to the investment income (for example, interest credited to a joint account), you only need to complete one T5 slip. If there are two recipients, enter both names. For a corporation, enter the name of the corporation.

Where there are multiple (two or more) account holders for the same account, the onus is on the account holders to ensure that each individual reports their fair share of the income. You have to prepare the T5 slip with the name of the individual(s) who represent the group of investors. The T5 slip should indicate the primary representative and/or the secondary representative, if known, as well as the primary representative's SIN in box 22. In addition, code 2 must be entered in box 23, which advises the CRA that the account is a joint account.

If the payment is made to an association, organization, or institution, enter that name. Do not enter the name of the secretary-treasurer or any other individual who has signing authority. If the payment is made to the registered holder of an investment (for example, broker or trustee of an RRSP), enter the name of the registered holder, not the name of the individual. If the payment is made to a trust, enter the name of the trust and not the name of the individual beneficiaries of this trust.

First line – Enter the individual's last name first, followed by the usual first names and initials, or enter the name of the recipient corporation, association, organization, institution, or trust. For "Estate of" or "in Trust for," enter the usual last name, followed by the names and initials followed by "Estate of" or "in Trust for."

Second line – Enter the second recipient's last name, first name, and initials. If there is only one recipient, leave this line blank.

In all cases, enter the recipient's full mailing address as follows:

Third, fourth, and fifth lines – Enter the recipient's full address, including city and province or territory. Enter the recipient's postal code. You can leave some lines blank. For the province or territory, use the two-letter abbreviations from the list of Provincial and Territorial codes.

Payer's name and address

Complete this area on each T5 slip. Enter the payer's full name and address.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca