non resident and international tax Archives

Canadian corporate loans to non-residents

There are a few reasons Canadian companies can choose to grant a loan. However, corporations need to be aware that lending to non-residents can lead to a requirement for the Canadian company to pay tax. Clearly, this situation is far from ideal. In this article, we will look at the tax implications of Canadian corporate … Continue reading

Foreign Accrual Property Income – Part 2

I have previously discussed how the Foreign Accrual Property Income (FAPI) applies to Canadians who establish corporations in a different country. For my previous article, please visit What is the Foreign Accrual Property Income (FAPI) in Canada? . After reading the article, more shrewd readers may ask, “What if I create a corporation in a … Continue reading

What is the Foreign Accrual Property Income (FAPI) in Canada?

Are you a Canadian Taxpayer looking to invest in another country? Have you heard of the ‘Foreign Accrual Property Income (FAPI)? If you have not, do not invest before you read this article! Imagine, if you will, a scenario. There is a wealthy Canadian taxpayer in the highest personal tax bracket. He has contributed … Continue reading

Non resident withholding tax – What is a section 217?

Are you a nonresident of Canada? Do you know what the Section 217 Election means for you? Doing business in another country can be difficult, as you have to deal with two systems and two different sets of laws. In this article, I will explain more about this potentially confusing topic and provide you with … Continue reading

Taxes for International Companies and Individuals in Canada Watch Video

Are you looking for information on international taxes and Canada?

I am a non-resident earning rental income in Canada. Do I need to file an NR4 slip and summary with the CRA?

As a non-resident, you will be subject to withholding tax on your rental income. The NR4 must be filed by the withholding agent to report gross rental income and taxes withheld by the last day March. If you did not have a withholding agent, you do not have to file an NR4. Instead, you will … Continue reading

Do I have to file a NR4 return with the CRA even if I did not remit any non-resident withholding taxes to the CRA?

Yes. If you earned gross income of $50 or more during the year, a NR4 slip has to be filed regardless of whether non-resident withholding taxes were remitted or not. If gross income of less than $50 was earned in the year and taxes were remitted to CRA, a NR4 return also has to be … Continue reading

How do I set up a non-resident account number?

You will need to set up an NR account number if you’ve never remitted non-resident income tax deductions. You can do this by contacting the CRA at 1-855-284-5946. The CRA can set it up over the phone and also tell you how to remit your deductions.

Tax on foreign inheritance Canada

Français Do Canadians pay tax on an inheritance from abroad, overseas, our outside of Canada? This article will answer this question in detail, and provide a summary of inheritance tax in Canada. Estate of Deceased Person outside Canada When a person dies an estate, which is a type of trust, is automatically formed. The estate … Continue reading

Tax Returns and Forms for Non-Residents

Are you a non-resident of Canada, or are you planning on becoming a non-resident in the near future? If yes, then you need to learn about the tax returns and forms for non-residents; otherwise, you could end up with a nasty surprise from the taxman. Becoming A Non-resident Becoming a non-resident for tax purposes is … Continue reading

I am a non-resident with retirement funds in Canada. What are my tax consequences if I start withdrawing?

As a non-resident, the withholding agent (plan issuer) will be required to withhold 25% of the payment (unless the tax treaty between Canada and your home country reduces the rate). The 25% withholding tax will be your final tax obligation to the CRA for the year so you will not be required to file a … Continue reading

Are there special rules for the principal residence exemption for non-residents?

Yes, the principal residence exemption will be adjusted based on the amount of time one is a non-resident. If an individual is a non-resident for the entire year, the individual will not be entitled to the principal residence exemption.

Foreign Property Reporting for Canadians

As Canadians, we are very active in the global economy. In fact, many Canadians have foreign investments in countries from the United States to China. This article explains the foreign property reporting requirements that Canadians have with the Canada Revenue Agency. Foreign Property Reporting to the CRA Individuals looking to grow their wealth will often … Continue reading

Do non-residents of Canada pay capital gains tax?

Non-residents of Canada are required to pay tax on capital gains resulting from the sale of Canadian real estate. Failure to do so can result in huge penalties levied by the CRA. Sale of Canadian Real Estate by Non-residents of Canada Under Section 116 of the Income Tax Act, non residents who sell Canadian real … Continue reading

Non-Residents Earning Rental Income from Real Estate in Canada

Non Residents of Canada earning rental income from Canadian real estate have Canadian tax obligations. This article identifies the different forms and returns that can be or are mandatory to be filed with the CRA regarding the rental income earned. Background When non-residents receive rental income from real property in Canada, taxes on the income … Continue reading

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