T5 Sheet

The T5 slip is an official document that reports to the government the investment income paid to an individual: dividends (a portion of the profits that an incorporated business pays to its owner) and interest. The business paying this money must file the T5 slip before the end of February. In Quebec, it is accompanied by a Relevé 3 slip.

Brief

It primarily reports dividends (the portion of profits that a company pays to its owner) and investment interest.
It is your company, not you, that must produce it when it pays you a dividend.
Deadline: the last day of February following the year of payment
In Quebec, a second document accompanies it: the RL-3 slip, sent to the tax authorities.

Why does this matter?

Imagine this: in December, you pay yourself $40,000 in dividends from your company to boost your income. Many entrepreneurs forget that an official document, the T5 (and the Relevé 3 in Quebec), must be filed every February by the company itself. Forgetting it risks late payment penalties. The government automatically compares the T5s it receives with your personal tax return: a missing slip immediately appears, like a missing piece of a puzzle. The good news: this is resolved in just a few minutes each February. Bankeo connects you with a verified accountant/CPA free of charge to handle your flyers, and we'll be there to support you every step of the way.

Frequently asked questions

What exactly is a T5 slip?

This is a small official form that tells the government how much investment money a person received during the year: primarily dividends (a portion of profits paid to a business owner) and interest. If you own an incorporated business and pay yourself a dividend, your business will complete this T5 slip for you, along with the RL-3 slip in Quebec.

What is the deadline for producing a T5?

The last day of February following the year of payment is the deadline for sending the documents to the government and delivering them to the recipient. Late payments incur penalties that increase with the number of documents and the number of days late. A dividend paid in December therefore leaves little time to prepare the necessary paperwork.

What is the difference between a T4 and a T5?

The T4 slip is used for salary income (with taxes already withheld from each paycheck); the T5 slip is used for investment income such as dividends (without prepayment of tax). A business owner who chooses to pay themselves a salary or dividends therefore receives one or the other. Bankeo provides you with a free, verified accountant/CPA who handles your tax returns stress-free, and we'll be there to support you every step of the way.