Category: Non-Resident & International Tax

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

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 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?

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.  

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

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.  

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?

What happens to my IRA & 401K if I temporarily relocate to Canada?

I am a US citizen who is being relocated to work in Canada temporarily by my employer. Can I continue to contribute to my employer sponsored IRA/401(k) and will Canada allow me to claim a tax deduction for contributions I make to my US retirement plan? Yes, as long as you were a US resident … Continue reading What happens to my IRA & 401K if I temporarily relocate to Canada?

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?
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