What is a schedule 91 as part of a T2 corporate tax return?

Schedule 91 is for non-resident corporations that carried on business in Canada or disposal of taxable Canadian property in Canada that was treaty-protected any time in the year.

Carrying on business means that the business is frequently or regularly doing business, not just a one off sale (see International FAQ #24 for further details).

Discussion:

If your non-resident company has carried on business in Canada during the year, then Part 1 of the schedule needs to be completed. Some of the information required includes:

• Which provinces or territories your company earned revenue in.
• The type of business activity your company performed (i.e. Entertainment, Petroleum and gas, Business professional, Construction, etc.).
• How much revenue was earned by sale of goods, services provided in Canada, financing activities and other.
• The article and paragraph of the tax treaty under which an exemption is claimed. You would need to find the tax treaty between your home country and Canada to see which article is applicable for an exemption.
• List of your Canadian corporate customers and the dates when the project started and completed.
• Number of employees and subcontractors (Canadian residents and non-residents) used during the year and the amount paid.
• If your corporation applied or did not apply for a waiver of the withholding requirement under Regulation 105 (see International FAQ #1).

If your non-resident company has disposed of taxable Canadian property in Canada during the year, then Part 2 of the schedule is to be completed. Some of the information required includes:

• Description of the property disposed of, proceeds, cost and gain/loss on the sale.
• The article and paragraph of the tax treaty under which an exemption is claimed.

If your corporation was deemed to have had a permanent establishment (see FAQ #127) in Canada, then this schedule would not be applicable as the corporation would be considered a resident of Canada. This schedule is only for non-resident corporations.

Recommendation

To learn more about how to report your non-resident corporation’s business activities in Canada, contact us.