Site logo

What is a Schedule 97 as part of a T2 Corporate Tax Return?

June 6, 2017

Tax Question:

What is a schedule 97 as part of a T2 corporate tax return?


Schedule 97 is an additional information schedule for non-resident corporations that must file a Canadian tax return.


This schedule reports the type of income earned in Canada by the non-resident corporation. There are two parts to this schedule. The first part requires the non-resident to identify which country it was incorporated in. The second part lists 12 types of income earned. Only one type can be selected. Some of the types listed are:

  • Treaty-based exempt corporation: This relates to corporations that carried on business in Canada but did not have a permanent establishment and are required to complete Schedule 91.
  • Section 216: This relates to real property rental income. The non-resident corporation has elected to file a tax return in order to pay taxes on the net rental income instead of taxes on the gross rental income received.
  • Canadian branch: If a corporation earned income from a business carried on in Canada and had a permanent establishment in Canada, it is considered to have a branch in Canada and pay a ‘branch’ tax (to be covered in a future FAQ).

This schedule is helpful in determining what additional tax schedules may be required and what sections of the tax may be applicable as the schedule provides detailed information.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

Share this post

Related posts