---
title: "What is t5?"
description: "T5 explained in plain English: definition, how it works, an example, and how it appears in QuickBooks and Xero."
url: https://ledgerbpo.com/glossary/t5/
updated: 2026-09-11
publisher: LedgerBPO (SS Support Network LLC)
language: en-US
---

# What is t5?

Glossary

A T5 is a Canadian slip reporting investment income, such as interest, dividends and certain other investment returns, paid to a resident during the year. Corporations and financial institutions issue a T5 to anyone they paid $50 or more in reportable investment income.

Updated September 2026

## How t5 works

A T5 is most commonly issued by a corporation paying dividends to its shareholders, or by a financial institution paying interest on an account, and it separates income into boxes such as eligible dividends, other-than-eligible dividends and interest. The amounts reported flow directly into the recipient's personal tax return.

Like other Canadian information slips, a T5 must be issued to the recipient and filed with the CRA by the last day of February following the calendar year the income was paid. Small corporations that pay dividends to their owners are a common source of T5 filing obligations that get missed without dedicated tracking. A T5 is not required for every payment; the CRA sets a $50 minimum threshold per recipient per year, so very small interest or dividend payments to an individual shareholder may fall below the reporting requirement in a given year.

## Example

A small corporation pays its owner $25,000 in eligible dividends during the year instead of salary. Because the payment is dividend income, the corporation issues a T5 showing $25,000 in the eligible dividends box, gives a copy to the owner, and files a copy with the CRA by the last day of February for use on the owner's personal return. If the same corporation pays a second, smaller shareholder only $30 in dividends for the year, no T5 is required for that shareholder since the amount falls below the CRA's reporting threshold.

## T5 in QuickBooks Online vs Xero

Not software-specific: QuickBooks Online and Xero track dividend payments as equity transactions but do not generate T5 slips natively, so Canadian businesses typically use a dedicated Canadian tax preparation tool or their accountant's T-slip software to produce and file T5s from the dividend totals in the books.

## Related terms

- [T4](https://ledgerbpo.com/glossary/t4/)
- [T4A](https://ledgerbpo.com/glossary/t4a/)
- [Financial Statements](https://ledgerbpo.com/glossary/financial-statements/)
- [All terms](https://ledgerbpo.com/glossary/)

## How LedgerBPO handles t5

We track dividend and interest payments through the year and compile the totals your CPA needs to prepare T5 slips accurately by the February deadline. We provide preparation support only; your CPA or a registered EFILE transmitter handles the actual filing with the CRA.

[W-2, 1099, T4 and P60 data ready to file](https://ledgerbpo.com/services/year-end-slips/)

Next step

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Source: https://ledgerbpo.com/glossary/t5/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt