Property transfer tax return guide

If you’re filing a property transfer tax (PTT) return, this resource may help you prepare the information you need to complete the return.

Find out what information you’ll need for each of the following sections of the return:

• Transferee
  Information about the purchaser
• Transferor
  Information about the vendor
• Property description
  Information about the property
• Terms
  Information about the financial terms
• Allocation of gross purchase price
  Information for non-residential properties
• Additional info
  Information to verify the exemption claimed
• Property value info
  Information about the property’s value
• Tax calculation
  Your tax breakdown
• Certification
• Attachments

Transferee or purchaser

The transferee is the individual or corporation who gains a legal interest in the property and has the legal right to occupy that property.

The information needed for each transferee depends on the type of transferee. Types of transferees include individuals, corporations, societies and other types of entities.

For each transferee, identify whether they qualify for an exemption. For a full list of property transfer tax exemptions and their corresponding codes, see Exemption Codes.

All exemption claims are reviewed to ensure eligibility.

Individual transferees

An individual transferee must provide the following information:

• Last name and given name(s)
• Date of birth
• Mailing address and contact information
• Residential status (Canadian citizen or permanent resident)
• Social Insurance Number (SIN)
• The percentage interest they're acquiring in the property

An individual transferee must also indicate:

• If the property will be used as a principal residence
• Whether they’re claiming the Canadian-controlled limited partnership exemption
• Whether they’re a trustee

If a transferee is not a Canadian citizen or permanent resident, they must provide their:

• 9-digit Individual Tax Number (ITN) from the Canadian Revenue Agency (CRA) if they don’t have a SIN
• Country or state of citizenship

If a transferee is claiming the B.C. Provincial Nominee exemption, they must provide their B.C. Provincial Nominee (PN) Certificate Number and effective date.

Corporate transferees

A corporate transferee can expect to provide the following information:

• Legal corporation name
• 9-digit Business Number (BN) assigned by the CRA
• Mailing address and contact information
• Percentage interest the corporation is acquiring in the property
• Number of directors who are Canadian citizens or permanent residents
• Information on each director

A corporate transferee must also indicate:

• If they are claiming the Canadian-controlled limited partnership exemption
• Whether they are a trustee, a public company and foreign corporation
• If they have corporate interest holders or foreign entity shareholders

Other types of transferees

Other types of transferees may include an association, financial institution, government, society or strata corporation. In this case, transferees can expect to provide the same information as a corporate transferee.

The transferee will need to provide a description of the type of transferee if it’s not listed in the return.

Transfers involving a trust and a bare trust

When a transferee is a trust, they will be expected to provide the name of the trust and additional information for each beneficiary unless the trust is excluded from the additional information disclosure requirements.

However, if the transferee is a bare trust, they must provide details on the settlors and beneficiaries. A bare trust means the trustee can act only on instructions from the beneficiaries.

Unless the trust is excluded, settlors or beneficiaries can expect to provide similar information required of a transferee. 

Director information

All transferees who are corporations must provide director information on the return.

Director information is the same as the information required of an individual transferee. 

Corporate interest holder information

Each transferee must identify individuals who have a beneficial or legal ownership in land, directly or indirectly, or a significant interest or control or exercisable rights in the land-owning corporation. Details on each corporate interest holder will be required unless the corporation or the trust is excluded from the additional information disclosure requirements.

The information required on each corporate interest holder is the same as the information required by an individual transferee.

Transfers involving limited partnerships 

If the transferee indicates they are holding the property on behalf of a limited partnership they will be asked to provide the following information: 

• Name of limited partnership
• General nature of the business carried on or intended to be carried on by the limited partnership
• Term for which the limited partnership exists
• Name, position type, and entity type of each partner
• Address, email address, and phone number of each partner
• Business number, SIN, tax filing number, and trust account number as applicable
• If a partner is an individual, their immigration status
• If partner is a corporation, whether it is a Canadian controlled corporation
• If the partner is a trust, whether any trustees or beneficiaries are foreign entities
• If the partner is any other type of entity, whether it is a foreign limited partner
• The fair market value of each partner’s capital contributions

Further to the above, if the transferee claims the Canadian Controlled Limited Partnership exemption, they will be asked to provide additional information:

• Each partner’s income tax fiscal year end
• Each partner’s residency status for income tax purposes for each partner throughout the taxation year in which the transaction occurs
• Each partner’s share of the limited partnership’s profit

Transferor or vendor

A transferor is the individual or corporation who transfers their legal interest in a property to a transferee.

When completing the return, a transferee must identify the transferor type and provide their name and contact information.

Transferees are responsible for making a reasonable effort to confirm the transferor’s residency status and whether they’re a resident or non-resident of Canada under the Income Tax Act (Canada). In most cases, this information can be copied from the Contract of Purchase and Sale.

If that information isn’t available in the contract and transferees are unsure of how to collect the information, or there are serious concerns about providing the vendor details, contact us. Transferees should also provide an attachment to the tax return explaining why the information wasn’t provided.

Penalties may apply for providing false information or not attempting to obtain and provide the information.

The Canada Revenue Agency publication IC72-17R6 explains the transferee’s responsibility to confirm the residency status of the vendor.

Note: Residency under the Income Tax Act (Canada) differs from the definition of residency as permanent resident under the Property Transfer Tax Act.

Property description

Transferees will be expected to provide the following information about the property:

• The date the transaction was completed
• The date of the Interim Agreement or Contract
• Fair market value of entire property
• The MLS number (if applicable)
• Whether the state of the property at registration is land and improvements or vacant land
• The property class
• Total interest in the property acquired by all transferees
• Transaction type
• The civic address
• The parcel identifier (PID) or plan number
• A legal description
• The municipality or regional district the property is located in

Transferees may also need to indicate whether the property is a pre-sold strata unit. If so, provide a copy of the Contract of Purchase and Sale or Purchasers Statement of Adjustments with their filing.

Transferees may also need to indicate whether the property is treaty land of the Tsawwassen First Nation. Treaty lands of Tsawwassen First Nation are not subject to the additional property transfer tax.

If the transfer involves multiple properties, transferees will need to provide details for every property that’s part of the transfer. Most of this information should be available through BC Assessment, a municipal tax notice or a title search from the Land Title and Survey Authority (LTSA).

A correcting transaction is a taxable transaction. It is a transfer to correct a qualifying conveyance error and it changes title to what the purchaser had originally intended. See Transfer to correct a conveyance error for details.

Terms

Transferees must provide information about how the sale was financed. This includes:

• The allocation of financing
• The cash payment needed for the purchase
• The name and branch number of the lender (if applicable)
• Other considerations paid in the transfer

If the transferee is acquiring the property through a trade, the traded property details will be collected. 

Allocation of gross purchase price

If the transfer involves non-residential property, there may be considerations if the final sale price is above the real property (land and buildings) value. In those cases, the transferee can expect to provide the allocation of the total purchase price to the real property, chattels, fixtures and any intangible considerations, such as goodwill and quotas.

Additional information

If transferees are claiming an exemption, they must provide information to support their claim.

Some additional information that might be expected, depending on the exemption claimed, include:

• Transferees’ relationships to transferors

• Relationship between corporation’s shareholders and the transferee(s)/transferor(s) if claiming the family farm corporation exemption

• Lease term: The length of the lease agreement, including any renewals

  • To calculate lease terms, refer to the Property Transfer Tax Regulation

• A Charitable Registration Number: A registration number issued by the CRA to a registered charity, such as a charitable organization, public foundation or private foundation

• Advance Tax Ruling Number: When we respond to an advanced tax ruling (ATR) request before the transfer is registered with the LTSA, we include an ATR number in the letter

• Jurisdiction and section: Required for transfers involving amalgamations

• Order in Council (OIC) Number: Required only if the transfer involves an Order in Council

• Separation Agreement or Court Order: If you claim exemption code 15, you should attach a copy of the signed separation agreement, court order or divorce decree

Property value information

If the additional property transfer tax, the further tax on residential properties over $3,000,000, or certain exemptions apply, transferees will need to provide additional information to calculate the tax payable including:

• Size of the property
• If the property includes farm classification, the size of the farm portion of the property and if there is a dwelling on the farm portion of the property
• Total value of all improvements on the property
• Total value of all land on the property
• Allocation of value to residential improvements and land from the total value

Property transfer tax calculation

The tax payable, if any, will be determined based on:

• The transferee information
• The exemption claimed
• Property information and values

If there is a difference between the gross purchase price and the fair market value, transferees must provide an explanation as to why.

You may use our property transfer tax calculator or refer to our property transfer tax calculation examples to estimate your property transfer tax payable.

Note: If a previous property transfer was withdrawn or cancelled at the LTSA, and property transfer tax was paid at that time, the transferee(s) must indicate the withdrawn or cancelled title number and the tax already paid. The previous tax paid will be applied to the current transfer. 

Calculating property transfer tax on improvements straddling more than one parcel of land

If a building or other improvement straddles more than one parcel of land, the parcels are treated as a single parcel for the purposes of calculating fair market value if:

• Each parcel is the subject of a taxable transaction, and;
• The parcels are transferred to the same person, related individuals or corporations in either a single transaction, or multiple transactions within a six-month period.

In these circumstances, transfers of parcels sharing a common improvement are treated as a single taxable transaction for property transfer tax purposes. You pay property transfer tax on the combined fair market value of all the parcels transferred. If the parcels are transferred in multiple transactions, the registration date for all the parcels is considered to be the date on which the first application for registration is filed with the land title office.  

If the Land Title Office allows you to include more than one parcel identifier (PID) on Form A, you can file one property transfer tax return and report the combined fair market value of all the parcels and pay the tax as a combined single transaction.

If the Land Title Office requires you to submit a separate Form A for each PID, you must file a property transfer tax return for each Form A. Report the combined fair market value of all PIDs on one of the property transfer tax returns and pay the tax as a combined single transaction. For the property transfer tax returns associated with the other parcels/PIDs, report a fair market value of $0.01.

Certification

Each transferee must sign a paper copy of their property transfer tax return. For the web-based return, the legal professional will then electronically certify the return using their Jurisert before submitting the return.

Attachments

Transferees must attach any required documents or documents they deem important to their property transfer tax return. These documents may include, but aren’t limited to:

• A BC Provincial Nominee Confirmation of Nomination
• Separation agreements/court orders
• Trust agreements
• Declaration of a Trustee
• A Contract of Purchase and Sale and Purchasers Statement of Adjustment
• An explanation of the effort made to either
  • Confirm the residency status of the transferor
  • Identify and report all corporate interest holders, or
  • Identify and report all beneficiaries
• Supporting documents to explain the calculation of the fair market value of each parcel if a subdivision exemption is claimed
• Documents to explain and support a Correcting Transaction