If you have to complete Schedule 5

You have to complete Schedule 5, Tax Calculation Supplementary – Corporations if one of the following applies:


The Newfoundland and Labrador offshore area and the Nova Scotia offshore area are considered provinces.

Part 1 of Schedule 5 – Allocation of taxable income

Complete Part 1 of Schedule 5 if you or your partnerships had a permanent establishment in more than one province or territory. Complete columns A to F for each province or territory in which you had a permanent establishment in the tax year. If there is no taxable income, you only have to complete columns A, B, and D.


This also applies to corporations with permanent establishments in Quebec or Alberta.

The CRA assesses provincial or territorial income taxes on the amount of taxable income allocated to each province or territory. For details on how to allocate taxable income, see Regulation 402 and Provincial Income Allocation Newsletters.

Special rules for establishing a corporation's gross revenue and salaries and wages attributable to a jurisdiction are provided in cases where the corporation is a member of a partnership and the partnership had permanent establishments in more than one jurisdiction. See Guide T4068, Guide for the Partnership Information Return (T5013 Forms), and prescribed Form T5013SCH5, Allocation of Salaries and Wages, and Gross Revenue for Multiple Jurisdictions – Schedule 5.

Whether or not the partnership filed a T5013 and related schedules, the partner corporations must report their permanent establishments and allocable revenue and salaries and wages on their own Schedule 5, inclusive of their partnership allocations. If a partner has a 50% share of partnership income it must include 50% of the gross revenue from the T5013 Schedule 5 in its T2 Schedule 5 gross revenue. Salaries and wages of the partnership should also be reported on the T2 Schedule 5 in the same proportions.

Part 2 of Schedule 5 – Provincial and territorial tax payable, tax credits, and rebates

Complete Part 2 of Schedule 5 if one of the following applies:


Corporations with a permanent establishment in Quebec or Alberta must complete the appropriate provincial corporation returns and schedules to report provincial tax and claim provincial credits and rebates.

Corporations with a permanent establishment in Ontario must also complete Part 2 of Schedule 5 if one of the three previous or five following conditions applies. The corporation:

Corporations must also complete Part 2 of Schedule 5 if they have Newfoundland and Labrador capital tax on financial institutions payable or Nova Scotia financial institutions capital tax payable.

For information on the calculation of tax for each province and territory, as well as details on provincial and territorial credits and rebates, see the following pages:

Reporting the tax and claiming the credits

On line 255 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the net amount of provincial and territorial tax payable or the net amount of refundable credits.

When the result is positive, enter the net provincial or territorial tax payable on line 760 of the T2 Corporation Income Tax Return.

When the result is negative, enter the refundable provincial or territorial tax credit on line 812 of the return.

Requested forms – Attach to the return the forms you completed to claim provincial or territorial credits or rebates, where requested.

Forms and publications

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