Tag: non resident and international tax

Tax for Canadians Employed Overseas

Hi, my name in Allan Madan. I’m a chartered accountant and tax expert in the Toronto, Oakville, and Mississauga regions of Ontario, Canada. This article is about Canadians working abroad, overseas, outside of Canada and taxes. This article about Canadians working overseas is going to be broken down into two parts; Canadians permanently working abroad … Continue reading Tax for Canadians Employed Overseas

Non Resident of Canada Receiving Rental Income

If you are a non-resident of Canada receiving rental income from a rental property in Canada, then this article is for you! Below you will learn relevant information such as filing and withholding requirements, as well as general information for non-residents of Canada receiving rental income. Basics When you receive rental income from a rental … Continue reading Non Resident of Canada Receiving Rental Income

As a non-resident with rental property in Canada, am I required to remit 25% to the CRA?

I am a non-resident of Canada and I have a rental property in Canada. I have recently found out that I am required to remit 25% of the gross rent to the CRA as a withholding tax on a monthly basis. Can I make this payment myself? As per the CRA ruling, an individual who … Continue reading As a non-resident with rental property in Canada, am I required to remit 25% to the CRA?

Can I make payments to the CRA for non-resident withholding taxes from my rental income?

I am a non-resident of Canada and I have a rental property in Canada. I have recently found out that I am required to remit 25% of the gross rent to the CRA as a withholding tax on a monthly basis. Can I make this payment myself? As per the CRA ruling, an individual who … Continue reading Can I make payments to the CRA for non-resident withholding taxes from my rental income?

If I sell services to clients outside Canada, do I have to collect GST/HST?

In determining whether you are responsible for collecting sales tax, you need to determine whether the services you provide occur in Canada or outside Canada. If the service is being performed outside Canada, your taxable supplies are considered export services and you do not have to charge GST/HST. However, if the recipient of the service … Continue reading If I sell services to clients outside Canada, do I have to collect GST/HST?

I’m a non-resident owning rental property in Canada. I’m confused between the NR4 slip, and NR6 form.

By filling form NR6 with the CRA, your agent/tenant will only withhold 25% of the net amount of your monthly rent, versus 25% of the gross amount of your monthly rent. The NR6 form should be filed at the end of the year for the following year. For example, if your tenant pays you $3,000 … Continue reading I’m a non-resident owning rental property in Canada. I’m confused between the NR4 slip, and NR6 form.

Do I become a non-resident as soon as I relocate to a foreign country?

No. Your residency status and whether you have to pay Canadian tax on worldwide income is determined by assessing the strength of residential ties to Canada. In order to be considered a non-resident for tax purposes, you must sever primary ties to Canada: Sell or rent your home in Canada Spouse must move from Canada … Continue reading Do I become a non-resident as soon as I relocate to a foreign country?

What is the departure tax return?

Canadians leaving Canada need to complete their final personal tax return by April 30th of the year following their departure. Any departure tax would be reported on this tax return. Canada imposes a departure tax on individuals who cease to be a tax resident in Canada. When an individual leaves Canada, he is deemed to … Continue reading What is the departure tax return?

What are my tax obligations if I am a non-resident holding rental property?

If you earn rental income from Canadian real property, you must file a Section 216 return. As a non-resident, a representative in Canada (i.e.: your tenant or property manager) will have to withhold 25% of the gross rental income paid to you and remit this amount to the CRA. The CRA will subsequently issue an … Continue reading What are my tax obligations if I am a non-resident holding rental property?

If I am a non-resident of Canada, and I sell Canadian real estate, what is the procedure for filing tax returns, and paying taxes?

As a non-resident individual who sells a property in Canada, the purchaser of your property will be required to withhold 25% of the proceeds (selling price) at the time of sale ‘disposition’ (which will be given back to you). This is to give non-residents an incentive to pay tax on the capital gain/recapture that may … Continue reading If I am a non-resident of Canada, and I sell Canadian real estate, what is the procedure for filing tax returns, and paying taxes?

I have taken money out of my RRSP under Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP) and I will be leaving Canada. What are the tax consequences?

If you emigrate from Canada (i.e. become non-resident of Canada for tax purposes), then the outstanding balance on your HBP or your LLP will be included in your taxable income for the year in which you leave Canada. To avoid this income inclusion, you must pay back the outstanding balance within 60 days from the … Continue reading I have taken money out of my RRSP under Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP) and I will be leaving Canada. What are the tax consequences?

What happens to my TFSA if I depart Canada and become a non-resident?

If you are becoming a non-resident of Canada, you do not have to close your Tax Free Savings Account (TFSA). Even after becoming a non-resident, you will not be taxed in Canada on any withdrawals from the account or any earnings within the account for the amounts contributed as a resident. Note that you cannot … Continue reading What happens to my TFSA if I depart Canada and become a non-resident?

As a non-resident of Canada, how do I recover the withholding tax I paid on Canadian rents received?

Non-residents of Canada are subject to 25% withholding tax of the gross rents they receive on Canadian rental properties. By electing under Section 216 of the Canadian Income Tax Act, you only have to pay income tax on your net Canadian rental income, instead of on the gross amount. On the Section 216 tax return, … Continue reading As a non-resident of Canada, how do I recover the withholding tax I paid on Canadian rents received?

What happens if I filed an NR6 that was approved by the CRA but I did not file the section 216 return by the deadline of June 30th?

By way of background, the Section 216 Tax Return reports the net rental profits (i.e. revenues – expenses) earned on an Canadian rental property, which is owned by a Non-resident of Canada. The NR6 Form is a waiver that reduces the withholding tax rate of 25% on gross rents received by the landlord to only … Continue reading What happens if I filed an NR6 that was approved by the CRA but I did not file the section 216 return by the deadline of June 30th?

I have been assigned to a temporary assignment (few years) by my employer to work in a foreign country. Will this affect my Old Age Security eligibility?

Normally, your Old Age Security eligibility will depend on the number of years you physically lived in Canada after the age of 18. This means that your OAS eligibility will very much be affected by your temporary assignment. However, Canada has a Social Security Totalization Agreement with various countries around the world which states that … Continue reading I have been assigned to a temporary assignment (few years) by my employer to work in a foreign country. Will this affect my Old Age Security eligibility?
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