T1134 foreign affiliates reporting is the CRA requirement that catches Canadian residents who own shares of a non-resident company: an Indian private limited company, a U.S. corporation, or an entity Canada treats as a corporation. If a non-resident corporation or trust is a foreign affiliate of yours at any time in the year, Form T1134 is required, with a separate supplement for each affiliate. This sits next to the T1135, which covers other foreign property. The CRA also has forms for non-arm's-length transactions with non-residents (T106) and for foreign trusts (T1141 and T1142). This guide explains who files, the equity tests, deadlines, penalties and the links to U.S. and Indian filing.
T1134 foreign affiliates: who must file Form T1134?
A taxpayer resident in Canada, including an individual, a corporation, a trust or a partnership, files if a non-resident corporation or trust is a foreign affiliate or a controlled foreign affiliate at any time during the taxpayer's year. The CRA says filing is required even if the affiliate was sold before year-end or stopped being controlled before year-end.
Section 95 of the Income Tax Act defines the terms:
| Term | Test |
|---|---|
| Foreign affiliate | A non-resident corporation in which your equity percentage is at least 1% and the total equity percentages of you and each person related to you is at least 10% |
| Controlled foreign affiliate | A foreign affiliate controlled by you, or one that would be controlled by you if you owned shares owned by certain non-arm's-length persons and up to four other resident Canadians |
Only the lowest-tiered Canadian corporation reports on its foreign affiliate, and certain non-resident discretionary trusts may also have to file. Because the 10% test counts related persons, a small personal holding can fall into the net when a spouse or relative also owns shares.
When is T1134 due?
For tax years beginning after 2020, within 10 months of the end of the reporting taxpayer's tax year (or fiscal period for a partnership). For an individual with a calendar year, that means the end of October of the following year: the 2025 filing is due at the end of October 2026. Because October 31, 2026 is a Saturday, ask your Canadian CPA whether the next-business-day rule applies instead of relying on it. Earlier years had 15 months (years beginning before 2021) and 12 months (years beginning in 2020).
Corporations and partnerships EFILE the form. The CRA says individuals can EFILE and NETFILE T1134 for 2021 and later years, and notes that older instructions required paper for individuals and trusts; check the page for the current method. Amendments should follow the same method as the original.
How to prepare Form T1134, step by step
- List every non-resident company and trust you hold, including your relatives' holdings, to test the 1% and 10% thresholds.
- Classify each as controlled or not controlled under section 95.
- Gather financial statements and ownership data for each affiliate's year that ends in your tax year. If information is genuinely unavailable, the form allows a disclosure.
- Complete the summary and one supplement per affiliate. Include a supplement even for a minimal or newly sold affiliate.
- File by the 10-month date and keep the filing confirmation.
- Align with the T1135 so shares of a foreign affiliate are not also reported there.
Documents you need
- Share certificates, registers and ownership charts, including family holdings.
- Financial statements of each foreign company for the relevant year.
- Details of loans to or from the affiliate and any dividends received.
- Foreign tax returns and filings that show income and tax paid.
- Translations and Canadian-dollar conversions where needed.
Penalties and relief
| Provision | What triggers it | CRA amount |
|---|---|---|
| Subsection 162(7) | Failure to file | $25 a day for up to 100 days, minimum $100, maximum $2,500 |
| Paragraph 162(10)(a) | Knowing or grossly negligent failure | $500 a month for up to 24 months, maximum $12,000, less penalties already charged |
| Subsection 162(10.1) | After 24 months | 5% of the relevant cost or value, less penalties already charged |
| Subsection 163(2.4) | False statement or omission | The greater of $24,000 and 5% |
| Section 233.5 | Due diligence exception for T1134 and T1141 | No penalty if you exercised diligence, disclosed that information was unavailable and filed within 90 days of getting it |
Reporting is not the only consequence. Canada can tax certain passive income of controlled foreign affiliates as foreign accrual property income even if it is not paid to you, so confirm the tax rules with your Canadian CPA as well as the information return. If you missed T1134 filings, see the CRA voluntary disclosures guide; for ten years of foreign-source documentation, the VDP asks for the most recent ten years.
The other international forms
- T106. Information return of non-arm's-length transactions with non-residents. Form T106 for 2025 and later years is on the CRA site, with a supplement package.
- T1141. Filed by a contributor, connected contributor or resident contributor who transferred or loaned property to a non-resident trust, arrangement or entity. Due on or before the person's filing due date, with a separate supplement for each trust, and the revised form applies to 2025 and later years. The obligation continues each year while you remain a contributor.
- T1142. Filed by a specified Canadian entity beneficially interested in a non-resident trust that received a distribution from, or owed money to, that trust. Due on the same date as the entity's income tax return. It is not required if the same trust is reported on the T1134, T1135 or T1141 for the year, and certain trusts such as foreign retirement arrangements are excluded.
- T1135. Specified foreign property above the $100,000 cost threshold; see the T1135 guide.
Worked example: an Indian company and a family holding
Dev, a Canadian resident in Mississauga, owns 60% of Pune Soft Pvt Ltd, a company incorporated in India. It is a foreign affiliate and controlled by him, so he files a T1134 with a supplement for Pune Soft. Separately, Maya in Calgary owns 4% of a U.S. corporation and her husband owns 7%. Her equity is at least 1%, and with a related person the total is 11%, so it is a foreign affiliate and she files a T1134, not a T1135 for those shares. If Dev's 2025 T1134 is due at the end of October 2026 and he files 30 days late, the base penalty is $25 times 30, or $750.
If you also file in the U.S. or India
The U.S. equivalent for foreign corporations is Form 5471 for U.S. persons, and foreign trusts have their own forms; see the U.S. guide to Forms 5471, 8858 and 8865 and Forms 3520 and 3520-A. A Canadian resident who owns an Indian company may also have Indian reporting through the company and the Reserve Bank; read the India FDI and FEMA reporting guide and India-Canada business structures for trade. Compare dates on foreign asset reporting deadlines compared.
Mistakes to avoid
- Overlooking relatives' holdings when testing the 10% threshold.
- Reporting shares of a foreign affiliate on the T1135 instead of the T1134.
- Assuming a sold or dormant company needs no filing for the year.
- Filing a T1141 once and then stopping, although the obligation continues.
- Treating the T1134 as optional because no tax arises.
How we can help
We are a U.S. CPA firm in Aurora, Illinois. We prepare the U.S. side for clients with foreign companies and trusts, such as Form 5471, Form 3520 and FBAR, and coordinate the ownership information with your Canadian CPA and Indian Chartered Accountant so it matches on every return. Your Canadian CPA prepares the T1134. See foreign account and asset reporting and cross-border tax services. More Canadian guides are on the Canada hub.
Frequently asked questions
Do I file a T1134 for a minority stake in an Indian company?
Possibly. If your equity percentage is at least 1% and you and related persons together hold at least 10%, the company is a foreign affiliate and the form applies. A smaller stake is generally a T1135 matter.
Is there a dollar threshold for T1134?
The CRA's current page describes relief for dormant or inactive affiliates, assessed at the supplement level, when the cost to the reporting entity is below $100,000. Otherwise the equity tests, not a dollar threshold, drive the filing.
Can individuals file T1134 electronically?
The CRA says individuals can EFILE and NETFILE T1134 for 2021 and later tax years. Check the current instructions, because older guidance required paper filing.
Do T1141 and T1142 apply to family trusts abroad?
They can. T1141 applies if you transferred or loaned property to a non-resident trust, and T1142 applies if you are a beneficiary who received a distribution or owes money to the trust.
What if I cannot get the affiliate's information?
Complete the disclosure on the form. A due diligence exception can remove penalties if you file within 90 days of the information becoming available.
Official sources
- CRA: Information returns relating to foreign affiliates (Form T1134)
- CRA: Questions and answers about Form T1134
- Justice Laws: Income Tax Act, section 95 (foreign affiliate definitions)
- CRA: Table of penalties for foreign reporting
- CRA: About Form T1141
- CRA: About Form T1142
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.