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.
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.
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 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.
Angela Hardbattle, Dipl. T (Hons), CPA, CA, Manager
Manager, Gilmour Group CPA’s
Disclaimer: The information contained in this article is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. While we have made every attempt to ensure the information contained in this article has been obtained from reliable sources and accurately described herein. SW Media Group and Gilmour Group Incorporated is not responsible for any errors or omissions, or for the results obtained from the use of this information. Before taking any action that might affect your personal and business finances, you should consult a qualified professional advisor.