Do I Need to File a T3 Return for a Bare Trust If Nothing Changed From Last Year in Canada?
This answer covers Canadian federal tax law, which applies in every province.
If your arrangement is a bare trust, you generally do not need to file a T3 for now: for taxation years ending on or after December 31, 2024 and before December 31, 2026, bare trusts are not subject to the trust reporting rules, so they need not file a T3 or Schedule 15. A resident express trust that is not a listed trust must file a T3. For 2025 specifically, the CRA does not expect bare trusts to file a T3, including Schedule 15.
That pause ends. Reportable bare trusts are subject to the rules for taxation years ending on or after December 31, 2026, so the first returns are for the 2026 year. Once a trust has to file, Schedule 15 must be filed each year with the T3 even if nothing has changed, though information already reported can be carried forward. A bare trust that is not required to file for 2025 has nothing to file.
Whether you have a reportable bare trust at all depends on the facts, and some arrangements are excluded, such as related individuals holding a home that would be the principal residence of one of them. If you are unsure, a lawyer or accountant can confirm where you stand.
Key takeaways
- For taxation years ending on or after December 31, 2024 and before December 31, 2026, bare trusts need not file a T3 or Schedule 15.
- Reportable bare trusts are subject to the trust reporting rules for years ending on or after December 31, 2026, so the first returns are for the 2026 year.
- Once a trust must file, Schedule 15 is required every year even if nothing changed, though earlier information can be carried forward.
- Whether you have a bare trust is a question of fact, so confirm with a lawyer or accountant if you are unsure.