Who should file

Find out if you should file a T3RET T3 Trust Income Tax and Information Return (T3 return).

Unless otherwise stated, all statutory references on this webpage refer to the provisions of the Income Tax Act R.S.C. 1985, c.1 (5th Supp.), as amended.

Determining the existence of a trust

The Canada Revenue Agency (CRA) does not provide legal advice so it is not able to advise taxpayers about the application of the private law to their specific circumstances or to interpret trust documents. It is the responsibility of the parties involved in an arrangement to determine the true nature of their legal relationships and whether they give rise to a trust.

Determining whether a particular arrangement is a trust is a question of fact and law based on an analysis of the facts specific to each situation under the applicable private law. Taxpayers may wish to consult a legal advisor for help in understanding all of the legal consequences of their trust or ownership arrangements.

Refer to: Question 1.1 "What is a trust?" on the "Enhanced reporting rules for trusts and bare trusts: Frequently asked questions" page for a general overview of the legal (non-tax) principles that apply to trusts in Canada.

Trust reporting rules

The rules governing which trusts must file an annual T3 return were enhanced for taxation years ending on or after December 31, 2023.

On November 18, 2025, the Government of Canada tabled Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, with proposed amendments to the Income Tax Act that relate to trust reporting for taxation years ending on or after December 31, 2024, December 31, 2025, and December 31, 2026.

Important note: Any item marked with a  Proposed flag is based on proposed legislation. To provide certainty as we head into tax season, the CRA confirms that it will proceed with administering the changes identified with a  Proposed flag. In some cases, this means that the CRA will not expect trusts to file a T3 return, including Schedule 15, under the current law. However, taxpayers may choose to voluntarily file under current law, pending the enactment of Bill C-15. If the proposed legislative changes are not enacted, the CRA will provide further direction.

The enhanced rules governing which trusts must file an annual T3 return are as follows:

• All trusts, unless specific conditions are met, are required to file a T3 return annually.
• Generally, all trusts that are required to file a T3 return, other than listed trusts, must include specified information about each reportable entity of the trust (beneficial ownership information), as outlined on Schedule 15, with their T3 return. See below for the listed trusts applicable for tax years ending on or after December 31, 2023.
•  Proposed For taxation years ending on or after December 31, 2024, and before December 31, 2026 (typically the 2024 and 2025 taxation years), bare trusts are not subject to the trust reporting rules and are therefore not required to file. For the 2023 taxation year, bare trusts are subject to the trust reporting rules. However, the CRA will not require bare trusts to file a T3 return, including Schedule 15, unless the CRA makes a direct request for these filings. See below for more information on bare trusts.

Trusts that must file a T3 return each year

You must file a T3 return annually, even when you have no income, if your trust is all of the following:

• A trust that is resident in Canada (or a trust deemed resident in Canada under subsection 94(3))
• An express trust  (or for civil law purposes a trust other than a trust that is established by law or by judgement)
• Not a listed trust (see below for the listed trusts applicable for tax years ending on or after December 31, 2023)

Trusts that must file a T3 return for a tax year when certain situations apply

For all other trusts (resident and non-resident), including listed trusts, you must file a T3 return for tax years in which the trust meets any of the following:

• Has tax payable
• Is requested to file
• Is a deemed resident trust
• Is resident in Canada and has either disposed of, or is deemed to have disposed of, a capital property or has a taxable capital gain (for example, a principal residence, or shares in the capital stock of a corporation)
• Is a non-resident throughout the year, and has a taxable capital gain (other than from an excluded disposition described in subsection 150(5)) or has disposed of taxable Canadian property (other than from an excluded disposition)
• Holds property that is subject to subsection 75(2) 
• Has provided a benefit of more than $100 to a beneficiary for upkeep, maintenance, or taxes for property maintained for the beneficiary’s use (for more information, see "Line 24 – Upkeep, maintenance, and taxes of a property used or occupied by a beneficiary" in the T4013 T3 Trust Guide)
• Receives from the trust property any income, gain, or profit that is allocated to one or more beneficiaries, and the trust has any of the following :
  • Total income from all sources of more than $500
  • Income of more than $100 allocated to any single beneficiary
  • Made a distribution of capital to one or more beneficiaries
  • Allocated any portion of the income to a non-resident beneficiary

Listed trusts

Listed trusts refer to the situations or trust types provided in subsection 150(1.2). Refer to the following questions on the “Enhanced reporting rules for trusts and bare trusts: Frequently asked questions” page for more information:

• Question 2.3.A for the listed trusts to which the reporting rules are applicable for taxation years ending on or after December 31, 2023, and before December 31, 2024 (typically the 2023 taxation year)
• Question 2.3.B for the listed trusts to which the reporting rules are applicable for taxation years ending on or after December 31, 2024, and before December 31, 2025 (typically the 2024 taxation year)
• Question 2.3.C for the listed trusts to which the reporting rules are applicable for taxation years ending on or after December 31, 2025 (typically the 2025 taxation year and subsequent taxation years)

Examples of trusts that need to file under the trust reporting rules

For examples to assist you in determining your trust reporting obligations, refer to: Question 2.10 "What are some examples of trusts that need to file under the trust reporting rules?" on the "Enhanced reporting rules for trusts and bare trusts: Frequently asked questions" page.

Bare trusts

For complete updates on the filing obligations of bare trusts, refer to: Question 3.2 “Are bare trusts now required to file an annual T3 return and Schedule 15?" on the "Enhanced reporting rules for trusts and bare trusts: Frequently asked questions" page.

The term "bare trust" is not defined in the Income Tax Act. However, for income tax purposes, a bare trust is a trust arrangement under which the trustee can reasonably be considered to act as agent for all the beneficiaries under the trust regarding all dealings with all of the trust's property.

A trustee can reasonably be considered to act as agent for a beneficiary when the trustee:

For the trustee to be considered as the agent for all the beneficiaries, it would generally be necessary for the trust to consult and take instructions from each and every beneficiary regarding all dealings with all of the trust property.

A typical scenario where a bare trust arrangement can occur is when a property developer establishes a bare trust arrangement to hold registered title to real property for privacy reasons while retaining beneficial ownership.

Internal trusts of registered charities

The CRA will not require registered charities to file a T3 return for internal trusts.

Internal trusts are those created when a charity receives property as a gift that is subject to certain legally enforceable terms and conditions and holds that property as trustee of the trust. Refer to: Additional information on internal trusts of charities.

Rules for tax years ending before December 31, 2023

If you require information in order to file a T3 return for a tax year ending before December 31, 2023, refer to the T4013 Trust Guide and select the previous year by using the drop-down menu.

Where the trust is an estate

Generally, when someone has died, their belongings, property, assets and liabilities form their estate. An estate is considered to be a testamentary trust  that arose on and as a consequence of an individual’s death. The legal representative of the deceased person is responsible for the administration of the estate. Find out more: Represent someone who died.

An estate may continue to earn income such as investment income or receive amounts such as a death benefit from an employer. Generally, a T3 return is required to be filed if there is any gain realized or payments received by the estate after the death. Find out more: What returns you need to file - Prepare tax returns for someone who died.

Where the trust is an estate, you may not need to file a T3 return if the estate is distributed immediately after the person dies, or if the estate did not earn income before the distribution. In these cases, you should give each beneficiary a statement showing their share of the estate. Find out more: What returns you need to file - Prepare tax returns for someone who died.

You might not need to file a T3 Return if the only income after death can be reported by a beneficiary. For example, the CPP/QPP death benefit can be reported on the beneficiary's return instead of on a T3 Return. Find out more: Report income, transfers, and dispositions - Prepare tax returns for someone who died.