For business owners, the end of the fiscal year means fulfilling your tax obligations, including filing tax returns. Depending on the legal status of your business and assets, there are a variety of documents you may need to file in order to comply with tax laws.
For example, companies that own rental properties must file RL-31 slips every tax year.
Want to know more about filing the RL-31 slip as a business? Our tax accountants explain everything you need to know.
What is an RL-31 slip and what is it for?
The RL-31 slip is a document that must be filed by all landlords, individuals and companies that have invested in real estate, own a building and have rented out a dwelling for which rent was paid during the fiscal year.
The slip must be given to each tenant of a dwelling so they can use it to claim the solidarity tax credit in their annual provincial income tax return.
Criteria for dwellings
Filing the RL-31 is mandatory for dwellings that meet certain criteria determined by Revenu Québec.
The criteria are as follows:
- The dwelling must be located in Quebec
- Rent was paid during the fiscal year in question
- The dwelling is not considered low-rental housing (HLM)
- The dwelling is not maintained by a public or private institution under agreement (e.g. CHSLD, hospital centre, etc.)
- The dwelling is not located in a building where intermediate or family-type resources are offered
- The dwelling is not a room located in the owner’s primary residence
- The dwelling is not a room in a hotel establishment rented for fewer than 60 consecutive days
Information needed to file an RL-31 slip
As a company that owns a rental property, there is information you will need to have on hand in order to file an RL-31 slip. Not only is the information important for Revenu Québec, but your tenants will also need it if they want to claim the solidarity tax credit.
The slip should include the tax year, the address of the dwelling and the number of tenants living there. The dwelling number created by Revenu Québec must be indicated in box A.
How to file an RL-31 slip
Revenu Québec offers a few different ways to file RL-31 slips, so you can choose the option that suits you best. Here are the ways to file:
- Online on the Revenu Québec website (Companies that own rental properties can use the Prepare and View the RL-31 Slip service (in French only), then enter a ClicSÉQUR user code)
- Using software you purchased or developed yourself, provided that it is approved by Revenu Québec
- On paper: you will need to contact Revenu Québec directly to get paper RL-31 slips
Who receives copies of the RL-31?
When filing an RL-31 slip, companies that own rental properties must always produce two copies. The first copy will need to be sent to Revenu Québec, while the second copy is given to your tenants. Landlords are required to send both copies by the last day of February of the year following the tax year in question. There are penalties for filing late.
If you file fewer than 51 RL-31 slips for the year, you can submit them online, using authorized software or by mail. If you file more than 50, you are required to submit them online.
Need help managing your corporate taxes?
The RL-31 is mandatory for all landlords who own dwellings that meet the criteria established by Revenu Québec. This applies to both individuals and companies that own such dwellings.
The two copies of the RL-31 with the correct information must be submitted to Revenu Québec and the tenants of the dwelling before the last day of February or risk incurring penalties.
Do you own a company that has recently acquired one or more properties with tenants? You may need professional corporate tax specialists to guide you through the new regulations that apply to you. With our corporate tax software, you can rest assured that you are fulfilling all of your tax filing obligations.
Contact the T2inc team to find out more about our services and get advice from our specialists.
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