1. Introduction

The purpose of this guide is to help you prepare the RL-25 slip, on which income from a profit-sharing plan is reported. The information contained in this guide does not constitute a legal interpretation of the Taxation Act or any other legislation.

This guide is valid for the 2025 taxation year and subsequent years unless administrative or legislative changes make an update necessary.

References at the end of certain paragraphs are to sections of the Tax Administration Act (section numbers preceded by “TAA”), the Regulation respecting fiscal administration (section numbers preceded by “RFA”), the Taxation Act (section numbers only), the Regulation respecting the Taxation Act (section numbers with an “R”), the Act to establish a legal framework for information technology (section numbers preceded by “ALFIT”) or the Act respecting the Québec Pension Plan (section numbers preceded by “AQPP”).

For more information, contact us.

2. General information

2.1. Purpose of the RL-25 slip

The RL-25 slip is used to report amounts allocated or paid by the trustee of a profit-sharing plan to an employee who is a beneficiary under the plan (hereinafter “beneficiary”). Amounts include:

• eligible and ordinary dividends
• capital gains (or losses)
• amounts paid by the employer
• amounts withheld as Québec income tax

The information on the RL-25 slip is used by beneficiaries to complete the personal income tax return (TP-1-V).

2.2. Amounts not to be reported on the RL-25 slip

Amounts an employer paid to the trustee of a profit-sharing plan to finance benefits that will be granted to a beneficiary must not be reported on the RL-25 slip. These amounts must be reported on the RL-1 slip.

2.3. Obligation to file RL-25 slips

RL-25 slips must be filed by any trustee of a profit-sharing plan. However, a beneficiary's employer can file the slips on the trustee's behalf.

Reference: 1086R2

3. Filing RL-25 slips

3.1. Filing methods

The required information must be submitted on a prescribed RL-25 slip.

You must file the RL-25 slip using one of the following:

• authorized software you purchased
• software you developed that meets our requirements
• the fillable PDF RL-25 slip (see courtesy translation RL-25-T)
• the paper slip you can order using our Ordering Forms and Publications online service or by contacting our client services

We do not give financial compensation if you provide your own slips.

3.2. Distribution and filing deadline

On or before the last day of February in the year following the year covered by the RL slips, you must:

• file the RL-25 slips with Revenu Québec
• file the RL-1 summary (form RLZ-1.S-V, Summary of Source Deductions and Employer Contributions) with Revenu Québec if Québec income tax was withheld
• distribute copies of the RL-25 slips to beneficiaries

References: 1086R65 and 1086R70

3.3. Filing RL slips with Revenu Québec

If you are filing more than 5 RL-25 slips, you must file them online (in an XML file) using software we have authorized.

If you are filing fewer than 6 RL-25 slips, either send them to us online (in an XML file) using software we have authorized or mail copy 1 of each paper RL slip to us.

If you send us the RL slips online, do not mail us copy 1 of the paper slips. However, be sure to keep the RL slips on a technology-based medium or keep paper copies of the slips, as applicable.

If Québec income tax was withheld, you must also file the RL-1 summary. Send us a paper copy or use our online services in My Account for businesses. If you use a specialized business such as an accounting firm or payroll service, it can file your RL-1 summary using the online services in My Account for professional representatives (in French only).

Send documents that are not filed online to one of the following addresses:

Montréal, Laval, Laurentides, Lanaudière and Montérégie	Revenu Québec  C. P. 6700, succursale Place-Desjardins  Montréal (Québec)  H5B 1J4
Québec City and other regions	Revenu Québec   C. P. 25666, succursale Terminus  Québec (Québec)  G1A 1B6

References: 1086R65, TAA 37.1.1, TAA (r. 1) 37.1.1R1, ALFIT 3, 28, 29 and 71

3.4. Distributing copies of RL slips to the beneficiaries

You have a number of options when it comes to distributing copies of the RL slips to the beneficiaries. If you file paper RL slips, you must give each beneficiary copy 2 of the slip in person, or send the beneficiary copy 2 by mail or by some other means. If you send the RL slip electronically, you must get the beneficiary's prior written consent by mail, electronically or by some other means. Beneficiaries must clearly state that they consent to receiving the RL-25 slip electronically and that their consent will remain valid for as long as they do not inform you of their intent to revoke it. Furthermore, you must inform the beneficiaries of how they can revoke their consent.

When you file RL slips electronically, you must:

• protect the personal information of the beneficiaries
• be able to check the identity of all persons who give their consent
• make sure that the information on the RL slip cannot be modified

Reference: 1086R70

3.5. Amending or cancelling an RL slip

You must file an amended slip to replace a slip you have already filed that has one or more errors (e.g. an incorrect amount).

Do not file an amended slip for the following errors:

• the beneficiary's address (in this case, resend the original slip to the beneficiary only)
• the beneficiary's social insurance number (SIN), first name or last name (in this case, you must cancel the RL-25 slip and make a new one)

You must file a cancelled slip to replace a slip that should not have been filed.

3.5.1. RL slip submitted online (XML file)

You can submit amended or cancelled RL-25 slips online. To amend or cancel an RL slip you already submitted online (in an XML file), follow the instructions in the Tax Preparers' Guide: RL Slips (ED-425-V).

3.5.2. RL slip submitted by mail (paper form)

To amend a paper RL slip that has already been submitted by mail, file an amended slip marked “Modifié.” On the amended slip, re-enter the correct amounts from the slip already submitted and enter the corrected amounts in the appropriate boxes. In addition, enter the letter “A” in the box marked “Code du relevé” and the number shown in the upper right corner of the slip you want to amend in the box marked “N^o du dernier relevé transmis.”

To cancel a paper RL slip that has already been submitted, make a photocopy of the original slip, write “Annulé” on it and, in the box marked “Code du relevé,” enter the letter “D.” Make sure that the number shown in the upper right corner of the original slip is legible on the photocopy before you file it.

3.6. Penalties

Under the Tax Administration Act, you are liable to a penalty if:

• You file an RL-25 slip (and the RL-1 summary, if applicable) late.
• You do not file online when filing more than 5 RL-25 slips.

If you fail to provide required information on an RL-25 slip, you are liable to a penalty of $100. The penalty does not apply if the omission concerns the beneficiary's personal information and you made reasonable efforts to obtain it.

References: TAA 59, 59.0.0.3, 59.0.0.4 and 59.0.2

4. Completing the RL-25 slip

4.1. Box marked “Année”

Enter the year for which the amounts on the RL slip are being reported.

4.2. Box marked “Code du relevé”

Enter “R” on original slips, “A” on amended slips and “D” on cancelled slips.

4.3. Box marked “N^o du dernier relevé transmis”

If you are completing an amended RL-25 slip, enter the number of the RL-25 slip you want to amend. For more information about amending an RL slip, see Amending or cancelling an RL slip.

4.4. Box A1 – Actual amount of eligible dividends

Enter the actual amount of eligible dividends that was allocated to the beneficiary.

An eligible dividend is a taxable dividend paid or deemed paid by a Canadian corporation and designated as an eligible dividend by the corporation if it is:

• a public corporation or a corporation that is not a Canadian-controlled private corporation (CCPC) whose income is subject to the general corporation income tax rate
• a CCPC whose income (other than investment income) is subject to the general corporation income tax rate

Reference: 497

4.5. Box A2 – Actual amount of ordinary dividends

Enter the actual amount of ordinary dividends from Canadian corporations that was allocated to the beneficiary. Such dividends are not entered in box A1.

Reference: 497

4.6. Box B – Capital gains (or losses) not used in calculating the deduction

Enter the net amount of Canadian and foreign capital gains (or losses) that was allocated to the beneficiary. Do not include the capital gains (or losses) amount entered in box C that is used to calculate the capital gains deduction on qualified property. Enter a minus sign (–) before any amount that is a capital loss.

Reference: 860

Foreign capital gains (or losses)

The amount entered in box B includes foreign capital gains (or losses) allocated to the beneficiary. It must be entered in Canadian dollars.

If the amount entered in box B includes foreign capital gains for which foreign income tax must be entered in box H, enter “B-1” in one of the blank boxes, followed by the amount of the foreign capital gains.

4.7. Box C – Capital gains (or losses) used in calculating the deduction

Enter the net amount of capital gains (or losses) on the disposition of qualified farm or fishing property or qualified small business corporation shares that was allocated to the beneficiary. This is the amount used to calculate the capital gains deduction on qualified property in the personal income tax return (TP-1-V).

Enter a minus sign (–) before any amount that is a capital loss.

If the amount entered in box C includes capital gains (or losses) on the disposition of qualified farm or fishing property, enter “C-1” in a blank box, followed by the amount of the capital gains (or losses).

If the amount entered in box C includes capital gains (or losses) on the disposition of qualified small business corporation shares, enter “C-2” in a blank box, followed by the amount of the capital gains (or losses).

References: 726.7, 726.7.1 and 860

4.8. Box D – Other amounts allocated or paid

Enter the total of the amounts that were allocated to an employee who is a beneficiary under a profit-sharing plan. Do not include:

• the actual amount of eligible dividends entered in box A1
• the actual amount of ordinary dividends entered in box A2
• the capital gains (or losses) entered in box B that are not used in calculating the deduction
• the capital gains (or losses) entered in box C that are used in calculating the deduction
• the amounts used to calculate the employee's income for a previous taxation year

4.8.1. Amounts paid by the employer to the trustee of the profit-sharing plan

The amount entered in box D includes amounts paid by the employer to the trustee of the profit-sharing plan and allocated to the employee. Note that these amounts are subject, at the time they are paid, to employee and employer Québec Pension Plan (QPP) contributions. For more information, consult the Guide for Employers (TP-1015.G-V).

If the amount entered in box D includes an amount paid by the employer to the trustee, enter “D-1” in a blank box, followed by the amount paid to the trustee.

References: 47 and AQPP 45b)

4.8.2. Amounts other than those paid by the employer to the trustee of the profit-sharing plan

The amount entered in box D includes:

• amounts previously allocated to other employees and subsequently reallocated
• amounts allocated to the employee as profits made by the trust on property
• business income paid
• foreign income allocated to the employee

If the amount entered in box D includes amounts other than those paid by the employer, enter “D-2” in a blank box, followed by the total amount not paid by the employer. To obtain this amount, subtract the amount paid by the employer to the trustee from the amount entered in box D (including foreign income) (see Amounts paid by the employer to the trustee of the profit-sharing plan).

If the amount entered in box D includes foreign income for which foreign income tax must be reported in box H, enter “D-3” in a blank box, followed by the amount of foreign income. Note that it must be entered in Canadian dollars.

References: 47, 857 and 859

4.9. Box E – Cancelled allocations

Enter the amount of the allocations that were cancelled because the employee ceased to be a beneficiary of the plan during the year, provided the employee did not become a beneficiary again during the year.

Reference: 864

4.10. Box F – Taxable amount of eligible and ordinary dividends

Enter the taxable amount of eligible dividends and ordinary dividends.

To obtain this amount, add the taxable amounts of dividends calculated according to the following formulas:

• amount from box A1 × 138% (for eligible dividends)
• amount from box A2 × 115% (for ordinary dividends)

References: 497 and 863

4.11. Box G – Dividend tax credit

Enter the amount of the dividend tax credit to which the beneficiary is entitled.

To obtain this amount, add the amounts of the tax credits calculated according to the following formulas:

• amount from box A1 × 16.1460% (for eligible dividends)
• amount from box A2 × 3.9330% (for ordinary dividends)

Reference: 767

4.12. Box H – Foreign income tax on non-business income

Enter the beneficiary's share of the income tax paid by the trust to the government of a foreign country or a political subdivision of a foreign country on foreign non-business income (such income is included in box B or D).

If foreign income tax was paid on income reported in more than one box, a separate RL-25 slip must be filed for each type of income.

References: 772.6 and 867

4.13. Box I – Québec income tax withheld at source

Enter the amount withheld as Québec income tax during the year.

For information about payments subject to source deductions of income tax and the calculation of such source deductions, see the Guide for Employers (TP-1015.G-V). Be sure to use the version of the guide that was in effect at the time the payments were made.

References: 345a)iii) and 1015

4.14. Additional information

To provide additional information, enter a code in a blank box, followed by the amount or information.

Table 1 lists and describes the codes applicable to the RL-25 slip. For each code, the corresponding section of the guide is also referenced.

TABLE 1: Additional information

Code	Description	Reference
B-1	Foreign capital gains realized	Box B – Capital gains (or losses) not used in calculating the deduction
C-1	Capital gains (or losses): Qualified farm or fishing property	Box C – Capital gains (or losses) used in calculating the deduction
C-2	Capital gains (or losses): Qualified small business corporation shares	Box C – Capital gains (or losses) used in calculating the deduction
D-1	Amounts allocated, on which a Québec Pension Plan (QPP) contribution was made	Amounts paid by the employer to the trustee of the profit-sharing plan
D-2	Amounts allocated or paid, on which a QPP contribution was not made	Amounts other than those paid by the employer to the trustee of the profit-sharing plan
D-3	Amount of foreign non-business income for which an amount of foreign income tax is entered in box H	Amounts other than those paid by the employer to the trustee of the profit-sharing plan

4.15. Box marked “Nom du régime d'intéressement”

Enter the names of the principal parties to the trust deed established under the profit-sharing plan.

4.16. Identification

4.16.1. Beneficiary

Enter the beneficiary's last name, first name and last known address (including the postal code) in the space marked “Nom de famille, prénom et adresse du bénéficiaire.”

Individuals are required to provide their SIN to any person filing an RL slip in their name. Individuals who do not have a number must apply for one with Service Canada. By law, the person filing the slip must also make reasonable efforts to obtain the individual's SIN. Failure to provide an individual's SIN in the box marked “Numéro d'assurance sociale du bénéficiaire” may result in penalties for both the individual and the person completing the slip.

4.16.2. Trustee or employer

On each RL slip, enter the name and address (including the postal code) of the trustee or employer in the space marked “Nom et adresse du fiduciaire ou de l'employeur.”