Do you still require to declare a checking account non-resident if it doesn’t earn interest?
Declare a checking bank acct as non-resident
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Hi Cho,
Yes. Even if the chequing account does not earn interest, it should still be designated as non-resident once you become a non-resident of Canada.
The non-resident designation is not based on whether the account earns income, but on your tax residency status. Banks are required to know whether an account holder is a resident or non-resident for tax reporting and withholding purposes.
A few practical points:
- A non-interest-bearing chequing account generally does not create Canadian tax filings on its own
- Declaring the account as non-resident helps ensure the bank does not issue incorrect tax slips (e.g., T5s)
- You can usually keep a basic chequing account as a non-resident, subject to the bank’s policies
If you have Canadian investment accounts, GICs, or receive Canadian-source income, the non-resident designation becomes especially important.
Hope this helps.
— Allan Madan, CPA
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