Why Non-Residents Need Specialist Help
Non-resident tax rules are different from the rules for Canadian residents. Canadian payers, such as tenants, property managers and pension plans, are often required to withhold tax from payments to non-residents. For example, rent paid to a non-resident is generally subject to 25% withholding on the gross amount unless the right forms are filed.
Missing an election, a deadline or a clearance certificate can mean paying far more tax than you owe, or having a large amount held back from a property sale. The right filings can often reduce withholding and recover tax that was withheld.
Renting out or selling property in Canada while living abroad? Don’t pay more tax than you owe.
Our Tax Services for Non-Residents of Canada
Section 116 Return and Clearance Certificates (T2062 / T2062A)
When a non-resident of Canada sells certain Canadian property, such as real estate, CRA must be notified. We help you prepare and submit the Section 116 notification and apply for a clearance certificate, so the buyer does not have to withhold a large portion of the sale price.
NR4 Slips
We prepare NR4 statements of amounts paid or credited to non-residents of Canada.
NR6 Undertaking
An NR6 is an undertaking to file a Section 216 income tax return by a non-resident receiving rent from Canadian rental property. Once approved, withholding can be based on net rental income instead of gross rent.
Section 216 Return
Non-residents use this return to report rental income from Canadian rental property. Filing it can lead to a refund of excess tax withheld.
Section 217 Return
For non-residents receiving Old Age Security, RRSP, RRIF, pension income and certain other benefits. This election can reduce the tax withheld on these payments.
NR7 Refund Applications
We prepare NR7 applications for a refund of Part XIII tax that was withheld.
NR73 and Residency Analysis
Leaving Canada? We review your residency status, including the NR73 Determination of Residency Status form, and give you an expert review of your ties to Canada.
Section 216, 217 or 116? We’ll tell you exactly which filings you need.
Leaving Canada? Plan Before You Go
Becoming a non-resident has important tax consequences. In your year of departure, you file a final return as a resident, which may include departure tax on certain property. Our personal tax return services cover departure returns. After you leave, we help you stay compliant on any Canadian income you continue to earn.
Planning before you move can make a big difference. Our tax planning services include non-resident tax planning, so you understand the tax impact of keeping or selling property in Canada.
Non-Residents With Canadian Property
Many of our non-resident clients own homes or rental units in Brampton, Mississauga and the GTA. We prepare the rental reporting your property needs and explain the withholding your tenant or property manager must make. For investors with several properties, see our real estate tax return services.
If a non-resident is a beneficiary or executor of a Canadian estate, our trust and estate tax return services can help with the estate’s filings.
Our Process
- Consultation. We review your residency, Canadian income and any property you own or plan to sell.
- Fixed quote. You know the full cost before any work begins.
- Filing plan. We tell you which forms, elections and deadlines apply to you.
- Preparation and CPA review. We prepare each return and form, and a CPA reviews it.
- Filing and CRA follow-up. We file with CRA and handle any follow-up questions.
- Ongoing support. We keep you on track each year for as long as you have Canadian income.
Living outside Canada but earning income here? Get a CPA on your side.
Key Deadlines for Non-Residents
Non-resident filings have their own deadlines, and they are different from the regular April 30 date most Canadians know. Section 216 returns generally have a longer filing window, but the deadline is shorter if you filed an NR6, because you agreed to file on time in exchange for lower withholding. NR4 slips must be issued by the payer within set dates after year end, and a Section 116 notice must be sent to CRA soon after a property sale.
Missing these dates can lead to the loss of lower withholding, penalties or a large amount of the sale price being held back. We track the deadlines that apply to you and file on time, so your Canadian income is handled correctly while you live abroad.
Serving Non-Residents With Ties to the GTA and Ontario
Our office is at 2 County Court Blvd, Suite 400, in Brampton. We serve non-residents with property or income in Brampton, Mississauga, Toronto, Caledon, Vaughan, Oakville, Milton and across Ontario.
At Bajwa CPA, we take the time to learn about and understand each client’s situation to make sure we truly meet their needs and provide outstanding professional service. Our goal is to deliver our services in an easy-to-understand manner that is both timely and reliable.
Frequently Asked Questions
Do non-residents have to pay tax in Canada?
Yes, on most Canadian-source income, such as rent, pensions and gains on Canadian real estate. Tax treaties may reduce or remove the tax on some income.
How much tax is withheld on rent paid to a non-resident?
Generally 25% of the gross rent, unless an NR6 is filed and approved, in which case withholding can be based on net rental income.
What happens if I sell Canadian property as a non-resident?
You generally need to notify CRA under Section 116 and obtain a clearance certificate. Without it, the buyer may have to withhold a large part of the purchase price.
Can I get back tax that was withheld?
Often, yes. Filing a Section 216 or 217 return, or an NR7 application, can result in a refund of excess tax withheld.
How do I know if I am a non-resident?
Residency depends on your ties to Canada, such as a home, spouse or dependants. We review your situation and can help with an NR73 if needed.
Get Help With Your Non-Resident Tax Return
Need a non-resident tax accountant in Brampton or Mississauga? Call 416-907-0568 or contact us today to book a consultation and discuss your Canadian tax needs.
