T2203 – Multiple Jurisdictions

Applicability

Form T2203 is used where all or part of the taxpayer's business income (self-employment) for the year was earned and is allocable to a permanent establishment outside his or her province of residence or outside Canada.

Allocation of Income

There are situations where, at the end of the year, a person resides in a province or territory of Canada, but all or part of the person’s business income for the year was earned and can be allocated to a permanent establishment outside that province or territory, or outside Canada. If this is your case, you have to determine the part of your total provincial or territorial tax that is payable to the jurisdiction where you reside and to the other jurisdictions in Canada.

Only businesses with profits are taken into account. The program allocates any excess self-employment income to the province of residence. Enter the self-employment income allocated to each jurisdiction in the column indicated. The amount allocated should equal the amount of self-employment income indicated on line 2.

The same rules apply if you were a non-resident of Canada throughout the year who carried on business in more than one province or territory in Canada.

Automatic allocation
T2203 – Automatic allocation to each jurisdiction

The following instructions are taken from the current version of Form T2203.

Use this form to calculate your provincial and territorial taxes if one of the following situations applies:

• You resided in a province or territory of Canada at the end of the year (or the date you left Canada if you emigrated) and all or part of your business income (including income you received as a retired, inactive, or limited partner) for the year was earned and can be allocated to a permanent establishment outside of that province or territory, or outside Canada
• You were a non-resident of Canada throughout the year carrying on business in more than one province or territory in Canada, or receiving income from an office or employment that can reasonably be attributed to duties performed in more than one province or territory in Canada

If either of these situations applies to you, you have to determine the part of your total provincial or territorial tax that is payable to the jurisdiction where you reside and the part that is payable to other jurisdictions in Canada.

If you use Form T2203 to calculate your provincial and territorial tax, do not complete Form 428 for any province or territory.

If you have to pay minimum tax or tax on split income, attach a completed Form T691, Alternative Minimum Tax, or Form T1206, Tax on Split Income – 2020, to your return.

Tax and multiple jurisdictions

Provincial or territorial income tax relating to business income is generally payable to the province or territory where the permanent establishment generating that income is located.

When tax is payable to multiple jurisdictions, provincial and territorial tax rates are applied to the taxable income from all sources. Nonrefundable tax credits and some other tax credits are allowable (with certain restrictions relating to residency) in calculating a basic provincial and territorial tax. The basic tax is then prorated by applying the percentage of income allocated to that province or territory.

Which parts of Form T2203 do I need to complete?

Form T2203 contains modified versions of Form 428 as well as the worksheets and schedules needed to calculate your provincial and territorial taxes for your province or territory of residence and for all jurisdictions where business income was earned.

Complete and attach to your tax return only the parts of this form that apply to you.

Part 1 – Allocating income to multiple jurisdictions

Complete this part to allocate your income to the appropriate jurisdictions and determine the percentage of income that is allocated to each jurisdiction.

Part 2 – Federal surtax on income you earned outside Canada and refundable Quebec abatement

Complete this part if you have income allocated "Outside Canada" (line 52220 in Part 1) or to Quebec (line 52140 in Part 1).

Part 3 – Provincial and territorial non-refundable tax credits

Complete this part for each province and territory (except Quebec) that you have income allocated to.

Part 4 – Provincial or territorial tax (multiple jurisdictions)

Complete this part for each province and territory (except Quebec) that you have income allocated to. This part includes Form 428MJ, Worksheet 428MJ, Schedules (S2)MJ, (S11)MJ and 428-A MJ (Ontario and Manitoba only).

Part 5 – Provincial and territorial tax summary

Complete this part to summarize your total provincial and territorial taxes (except Quebec).

Provincial and territorial credits not included on Form T2203

You may be eligible for other tax credits not included on Form T2203. The chart on the next page lists the forms you need to claim the additional provincial and territorial credits you may be entitled to as a resident or non-resident.

Many of these credits are limited to the amount of tax payable to the province or territory. When you are asked to enter the provincial or territorial tax amount from line 42800 of your return or from a provincial or territorial Form 428, enter the applicable amount from the provincial or territorial tax summary in Part 5 of your Form T2203.

Include these credits on line 47900 of your return and attach the completed forms to your return.

Provincial and territorial credits not included on Form T2203 (continued)

To get the following forms as well as the provincial and territorial information guides, go to canada.ca/cra-forms or call the Canada Revenue Agency at 1-800-959-8281.

Newfoundland and Labrador	Form T1129, Newfoundland and Labrador research and development tax credit (individuals)
New Brunswick	Schedule NB(S12), New Brunswick seniors' home renovation tax credit (residents only)
Ontario	Form ON479, Ontario Credits: Ontario childcare access and relief from expenses (CARE) tax credit (residents only) (Schedule ON479–A) Ontario seniors' public transit tax credit (residents only) Ontario political contribution tax credit (residents only) Ontario focused flow-through share resource expenses (individuals) (residents only) (Form T1221) Ontario apprenticeship training tax credit (residents only) Ontario co-operative education tax credit (residents only) Form ON-BEN, Application for the 2021 Ontario trillium benefit and Ontario senior homeowners' property tax grant (residents only)
Manitoba	Form MB479, Manitoba Credits: Personal tax credit (residents only) Education property tax credit (residents only) Seniors' school tax rebate (residents only) School tax credit for homeowners (residents only) Primary caregiver tax credit (residents only) Fertility treatment tax credit (residents only) Seniors economic recovery credit (residents only) Paid work experience tax credit Odour-control tax credit (individuals) (unused amount only) Green energy equipment tax credit (purchaser)/(manufacturer) (residents only) Book Publishing Tax Credit (individuals) (residents only) (Form T1299) Cultural industries printing tax credit (residents only) Community enterprise development tax credit (Form T1256) Employee share purchase tax credit (Form T1256-2)
British Columbia	Form BC479, British Columbia Credits: Sales tax credit (residents only) British Columbia home renovation tax credit for seniors and persons with disabilities (residents only) (Schedule BC(S12)) British Columbia venture capital tax credit British Columbia mining exploration tax credit (individuals) (residents only) (Form T88) British Columbia training tax credit (individuals) (residents only) (Form T1014) British Columbia training tax credit (employers) (residents only) (Form T1014-1) British Columbia shipbuilding and ship repair industry tax credit (employers) (residents only) (Form T1014-2)
Yukon	Form YT479, Yukon Credits: Children's fitness tax credit (residents only) Business investment tax credit (residents only) Research and development tax credit (individuals) (residents only) (Form T1232) Yukon Business Carbon Price Rebate (Schedule YT(S14)) Yukon First Nation income tax credit (residents only) (Form YT432) Yukon Government Carbon Price Rebate – Individuals (residents only) (Schedule YT(S14))
Northwest Territories	Form NT479, Northwest Territories Credits: Cost of living tax credit (residents only)
Nunavut	Form NU479, Nunavut Credits: Cost of living tax credit (residents only) Political contribution tax credit