Non-resident GIC interest – is it taxable in Canada?

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Allan,

I am a non-resident Canadian, residing in Italy. For practical purposes, I maintain a CIBC chequing account, and also have a renewable GIC (issued by CIBC).

The GIC interest income is reported to the Italian tax authorities and tax is paid on both the chequing account (no interest accrued) and on the GIC.

The question is clarifying the statement on the GIC “less any non-resident tax”. Please confirm that no tax filing is required by CRA, given the interest and tax is paid in Italy.

Thank you and best regards.

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score 0 · Answer 1 · 2026-06-10T17:58:16+00:00

Hello Josie,

In general, Canadian GIC interest paid by a Canadian financial institution to a non-resident of Canada is not subject to Canadian non-resident withholding tax, provided the bank is dealing with you at arm’s length. Since CIBC is an unrelated financial institution, the GIC interest should generally be exempt from Canadian Part XIII withholding tax.

As a result, you should not be required to file a Canadian tax return solely because you earned interest on a Canadian bank account or GIC, assuming you have no other Canadian-source income that requires a Canadian filing.

The wording “less any non-resident tax” is likely standard bank wording. In many cases, no Canadian non-resident tax is actually withheld on ordinary arm’s-length bank interest.

You should continue reporting the GIC interest in Italy, as you are already doing, since Italy is your country of tax residence. Also ensure CIBC has your correct non-resident status and Italian address on file so that the account is coded properly.

Best regards,

Non-resident GIC interest – is it taxable in Canada?

1 Answer

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