Hi, I paid 25% of my gross rent for 2024 ( first year that I collected rent), I am planning to move back to Canada this year, do I still have to file NR6, and I need to wait until NR6 form approved before I can file NR4 right? thanks Joey
NR6 /NR4 for rental property in Canada
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Dear Joey,
Thank you for reaching out! Since 2024 was your first year collecting rental income in Canada, you’ve correctly withheld and remitted 25% of the gross rent. Regarding your questions:
NR6 Filing: If you plan to move back to Canada this year and become a Canadian tax resident, you no longer need to file an NR6 for future rental income. However, for the period you were a non-resident, your NR6 would still apply if you want to reduce withholding tax based on net rental income rather than gross.
NR4 Timing: Yes, the NR6 must be approved before you can file the NR4. If the NR6 was not submitted or approved, the 25% withholding would remain based on gross rent, and you would need to file the NR4 accordingly.
If you’re transitioning back to Canadian residency, it’s important to properly report this change to the CRA to ensure tax compliance.
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