Note: Line 10400 was line 104 before tax year 2019.

Royalties are considered payments received as compensation for using or allowing the use of a copyright, patent, trademark, formula, or secret process. They can also include payments relating to cinematic films, film works, or television tapes.

Royalties may also be income from investments or from a business.

Your income from royalties may be shown in box 17 of a T5 slip.

Completing your tax return

If your royalties are from a work or invention and there are no associated expenses, report the income on line 10400 of your return. If there were associated expenses, report the income on line 13500 of your return.

Report all other royalties on line 12100 of your return.

Forms and publications

• Income Tax Package – Guide, return, and schedules
• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income

Related topics

• Line 12100 – Interest and other investment income
• Lines 13499 to 14300 – Self-employment income
• Taxes – Tax information for individuals, businesses, charities, and trusts