Non-Resident Federal 48% Surtax

Question

101 viewsApril 15, 2024Cross Border Tax

0

Henry (anonymous) Posted April 11, 2024

Hi Allan,

I was a full year non-resident of Canada for 2023 living in the US. However, I received a 2023 T4 with employment income from Ontario due to my previous employer going public. The company does have establishment in Ontario. I filed my non-resident return with the CRA expecting to pay Federal + ON Provincial Taxes. However, the CRA assessed my return and said I need to pay federal + 48% surtax for my federal tax instead of the ON provincial taxes. Could you let me know if this is correct? Should I file a dispute?

Thank you

1 Answer

score 0 · Answer 1 · 2024-04-15T14:08:54+00:00

Hi Henry,

Please check the T4 Slip. If the province of employment is “Ontario”, the surtax will not apply, and in this case, ensure that you enter the Province of Taxation as Ontario. If the province of employment is “Outside Canada”, the surtax will apply.

Non-Resident Federal 48% Surtax

1 Answer

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