Non-Resident & International Tax Archives

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

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

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

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 am a non-resident of Canada and I’d like to draw funds from my RRSP. What is the most tax efficient method?

Should you make a lump sum withdrawal from your RRSP as a non-resident, you are required to pay a flat 25% withholding tax to the CRA on the amount, which you will most likely never recover. A more tax efficient method would be to first turn your RRSP into an annuity such as RRIF. Depending … Continue reading

I moved from the UK to Canada for school. Can I deduct moving expenses?

According to the CRA, if the taxpayer changes residences and begins full-time attendance at a post-secondary institution (whether or not in Canada), eligible moving expenses (from old residence to new) may be deducted if the move results in you living at least 40 KMs closer to the institution. Also, at least one of the residences … Continue reading

Is there a penalty for late filing a NR4 return or not withholding non-resident tax (Part XIII)?

Yes, there is a penalty for both. The minimum penalty for filing the NR4 after the deadline is $100 and the maximum penalty is $7,500. To learn more specific details about the penalty amount, check out the CRA website section. The penalty for failing to withhold and remit Part XIII is 10% of the amount … Continue reading

What are the methods of remitting non-resident withholding tax to the CRA?

There are 3 methods of remitting non-resident withhold tax to the CRA: Electronically: Online at My payment Using your financial institution’s phone or online banking At your financial institution: You will need to provide the completed non-resident tax remittance voucher with your payment. Mail cheque and the completed non-resident tax remittance voucher to the CRA … Continue reading

Can I claim the moving expenses incurred when emigrating from Canada as a deduction on my departure tax return?

No, emigrants are generally not allowed to deduct moving expenses incurred when moving from Canada to another country. For more information, visit here.

I resided in Canada for more than 183 days this year. Will I have to file Canadian tax return as a Canadian resident?

The answer is you may not be required to. If your home country has a tax treaty with Canada and you continue to maintain a permanent home in your home country, you will still be able to file Canadian tax return as a non-resident.

Am I eligible to receive CCTB abroad?

If you are eligible to receive the Canada child tax benefit (CCTB) you will continue to receive it during your absence from Canada. To be eligible for CCTB you must meet the following criteria: You must live with the child and the child must be under 18 years of age; You must be primarily responsible … Continue reading

What is a NR75 form?

The NR75 form is a non-resident remitter tax registration form. It is required to be completed by the person/corporation remitting non-resident taxes. Upon completion, the form must be sent to the International Tax Services Office.

I have a non-resident spouse, can I claim a spousal amount tax credit?

According to the CRA, in order for an individual to claim the spousal tax credit for a non-resident spouse, it is necessary that such non-resident person be supported by the individual. The question of support is determined on the facts of each case. In determining if the non-resident spouse is supported by the individual, the … Continue reading

Can a non-resident who owns a Canadian rental property choose a tenant to act as his agent in Canada?

No, a tenant who is renting the property (i.e. the payer) cannot act as the agent. A professional rental agent (e.g. property manager) or a family member/friend can be chosen to perform the responsibilities of the agent as long as the individual is a Canadian resident.

I have a vacation property outside Canada and it is never rented out. The cost is greater than $100,000 CAD. Do I have file form T1135 with my personal tax return for this property?

No, as long as the property is solely used personally, it is not required to be reported on T1135.

Category: Non-Resident & International Tax