Non-Resident Tax Accountant Mississauga Toronto Canada
We at MadanCPA are non-resident tax accountants in Mississauga and Toronto. We specialize in non-resident taxes for Canadians, providing tailored solutions to meet a variety of needs. Our most sought-after services include:
1. Tax Planning for Canadians Leaving Canada Permanently: We help individuals navigate the complexities of tax obligations associated with leaving Canada, ensuring a smooth transition and optimal tax strategy.
2. Tax Filing for Non-Resident Canadian Real Estate Investors: Our team assists non-resident investors in understanding and complying with Canadian tax regulations related to real estate investments, helping them maximize their returns.
3. Planning and Tax Preparation for Canadian Individuals and Businesses with International Income: We offer comprehensive planning and tax preparation services for clients with income from international sources, ensuring they meet their tax obligations while optimizing their tax situation.
Our clients span the globe and are located in major Canadian cities, including Toronto, Mississauga, Vancouver, and Montreal. Allan Madan and MadanCPA (an accounting firm in Mississauga) are recognized experts in non-resident and international tax matters, making us an ideal choice for your needs.
Allan has authored several insightful articles on complex tax issues, including Departure Tax, Tax Implications of Becoming a Non-Resident of Canada, and Real Estate Tax Planning for Non-Resident Canadians.
Below, you’ll find a comprehensive list of our services. We invite you to reach out with any questions you may have and to explore how we can assist you in achieving your tax objectives.
Listing of non-resident tax accountant services by CPA in Mississauga and Toronto, Ontario Canada:
International Tax Planning - We provide tax planning services for Canadians facing international tax issues. Our expertise covers a range of scenarios, including Canadians relocating abroad, understanding the tax implications of foreign corporations, and strategies for expanding into international markets.
Personal Tax Returns with Income Overseas - We specialize in preparing T1 personal tax returns for Canadians who earn income overseas, including employment, business and investment income. This includes claiming foreign tax credits on Form T2209 and reporting foreign assets on Form T1135.
Global Taxation - Our expertise covers a range of scenarios, including Canadians relocating abroad, understanding the tax implications of foreign corporations, and strategies for expanding into international markets.
Section 216 Non-Resident Tax Return Preparation and Filing - We file Section 216 Non-Resident Returns for Non-residents of Canada who own Canadian rental properties. This optional filing allows you to pay tax on the net rental income. Most filers receive a tax refund.
NR6 Form Preparation and Filing - Our Non-Resident Tax Accountants in Mississauga and Toronto can submit the NR6 Waiver form to the Canada Revenue Agency to lower the non-resident tax your Agent must withhold from 25% of the gross monthly rent to 25% of the estimated net monthly rent (after expenses). This will improve your cash flow.
Application for a Certificate of Compliance - We apply for Certificates of Compliance (T2062) on behalf of non-residents who sold Canadian real estate. This Application must be filed with the CRA within 10 days of the closing date of the sale. Once the CRA issues the Certificate, the attorney will release the funds withheld from the sale.
Section 116 Non-Resident Tax Return Preparation and Filing - We prepare and file Section 116 Non-Resident Tax Returns for non-resident sellers of Canadian real estate. Most non-resident sellers receive a tax refund after filing because selling expenses are deducted in this Tax Return.
NR73 Review Services for Departing Canadians - We assess Form NR73 submitted by departing Canadians and offer recommendations. Since the CRA will determine your residency status based on this form, it’s crucial to ensure it is completed accurately.
Departure Tax Planning - Our non-resident tax accountants in Mississauga and Toronto Canada offer tax planning services aimed at minimizing the impact of departure tax for Canadians transitioning to non-resident status. This includes calculating the departure tax and completing forms T1161, T1243, and T1244.
Form T1134, Foreign Affiliates, Preparation & Filing - We prepare and file Form T1134 Summary and Supplement for Foreign Affiliates and Controlled Foreign Affiliates with the Canada Revenue Agency. We also calculate the foreign accrual property income for Canadian residents who own foreign real estate through foreign corporations.
Form T1135 Preparation and Filing - We prepare and file form T1135 (foreign income verification statement) for Canadian residents who own foreign assets with a cost amount of more than $100,000. Common examples include Canadians who own foreign real estate, foreign marketable securities and foreign fixed deposits/bonds.
Section 217 Non-Resident Tax Return - MadanCPA prepares Section 217 Non-Resident Tax Returns for non-resident Canadians receiving pension income, including from RRSPs, RIFs, CPP, OAS, and RPPs. This elective return enables non-resident pensioners to claim a tax refund for some or all of the non-resident tax withheld from their Canadian pension payments.
Old Age Security Return of Income (OASRI) for Non-Residents - We prepare non-resident tax returns for individuals outside Canada receiving Old Age Security (OAS) benefits. This return calculates the OAS benefits you are entitled to. If your worldwide income exceeds a certain threshold, you may need to repay a portion of the OAS benefits you receive.
No, you are not required to hire a withholding agent. You can manage the monthly tax remittance, which is 25% of the rent collected, yourself using Canadian online banking. To do this, you will need to obtain a non-resident remitter number from the CRA, which can be issued over the phone.
Yes, if you are a non-resident selling Canadian real estate, your lawyer will withhold 25% of the sales proceeds. You can reclaim this amount by applying for a Certificate of Compliance, which must be submitted to the CRA within 10 days of the closing date.
Departure tax is a significant tax implication for Canadians who leave the country permanently. When a Canadian changes their status to a non-resident, they are considered to have sold their assets at their fair market value on the date of emigration. Capital gains tax (departure tax) will apply to any assets that have appreciated in value.
Non-residents are required to file a tax return with the CRA only in specific situations: (a) if they conducted business in Canada, (b) if they worked in Canada, or (c) if they sold Canadian real estate. Additionally, non-residents may choose to file a tax return to potentially reduce the taxes owed on rental income (via a Section 216 Tax Return) or on pension income (via a Section 217 Tax Return).
Yes, residents of Canada are taxed on both their domestic and foreign income. To prevent double taxation, resident taxpayers can claim a foreign tax credit on their Canadian personal tax return by completing form T2209. This credit is the lesser of the foreign taxes paid or the Canadian income tax owed on the foreign income.
The CRA can take up to 18 weeks to issue a Certificate of Compliance, also known as a clearance certificate. Until the certificate is issued, your lawyer will retain the tax withheld from the sale in their trust account.
You are required to remit a non-resident tax of 25% on the rent collected each month from your rental property in Canada. If the CRA has not contacted you, you can file a voluntary disclosure under the CRA’s late filing policy for Section 216 returns. This involves submitting a Section 216 non-resident tax return for each year you rented the property and paying tax at a rate of 25% on the net rental profit (after deducting expenses). If you do not take this option and the CRA discovers your non-compliance, they will assess a non-resident tax equal to 25% of the rental income. Failure to pay this tax could result in the CRA issuing a lien on your property.
You have two options. First, you can file a Departure Tax Return to become compliant with the CRA if you have not submitted a tax return for the year you left Canada. Second, you can submit form NR73, which determines your residency status upon leaving Canada. This option is advisable if you incorrectly filed a full-year resident tax return without disclosing your departure date. If the CRA determines that you became a non-resident, you should then file a T1 Adjustment with the CRA, including the relevant departure schedules.
A factual resident of Canada maintains at least one primary tie (e.g., a house, spouse, or children) or multiple secondary ties (e.g., driver’s license, health card, Canadian phone number, or mailing address). In contrast, a deemed resident is classified as a resident based on the rules of a tax treaty Canada has with a foreign country. Most tax treaties follow the OECD model and designate a taxpayer as a resident if they have a permanent home or significant personal and economic ties to that country. Both factual and deemed residents must pay taxes to the CRA based on their global income.
Non-residents can collect CPP benefits if they are at least 60 years old and have previously contributed to the Canada Pension Plan. Additionally, non-residents can collect OAS benefits if they resided in Canada for at least 20 years after turning 18. You should inform Service Canada of your non-resident status so that the appropriate non-resident tax is withheld from your OAS and CPP benefits. If you reside in a country with a tax treaty with Canada that caps the non-resident tax rate, it may also be beneficial to complete form NR5 and submit it to the CRA.
Client Testimonial:
I run a small consulting firm in the US and Madan was incredibly helpful with providing advice on cross border tax issues. Particularly when it comes to a US company hiring an employee in Canada. I would highly recommend - A.J. Gherich
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Hello,
I am working in USA and I need to file Canada Ontario Tax. I have a house in ON and my wife has some income in Canada. I would like to know how you can help me to file my Canada tax and how much you will charge.
Thanks,
David
Hi David.
I can file your Canadian tax return for you for a fee of $200. I can also file your US tax return for you for a fee of $300. If I prepare both returns, then you will receive a 10% discount from the total price.
Hello, I will be relocating to Dubai for the next 5 years and would like to become a non-resident at departure. However, I need to maintain my primary residence for my unemployed, retired mother to live in. Are there an exemptions for this or will I be deemed a resident as I still have primary ties?
Thank you.
KJ
Hi KJ, If you maintain a dwelling in Canada and support your mother who is living in Canada, then you will be classified as a tax resident of Canada.
I’m a non resident Canadian recently relocated from UAE to USA.
I have an investment property in Toronto mortgage with bank and need to file 2017 taxes for reimbursement of withholding income taxes?
Can you file my return and what’s your charge?
My spouse and I Just received lump sum distributions on our 403B and 401A accounts from our US retirement plans. The payee withheld the 30% withholding tax but no 10% early withdrawal penalty was assessed. We have been back in Canada now for 14 years working here but wanted to have these monies here instead of in the US. If I was not charged the 10% penalty by Fidelity does that mean I do not have to pay it? If I do how do I go about this so that I can utilize it as part of the foreign tax credit for the 2018 tax year.. I was originally under the assumption that I did not have to file US taxes and that the lump sum withholding tax would serve as my tax obligation
Hi Landon, the gross amount of the withdrawals (before withholding taxes) must be included in your Canadian tax return, because they are taxable in Canada. You can claim a foreign tax credit on your Canadian return for the amount withheld.
The US taxes withheld represent your final obligation to the IRS, and you do not have to file a US tax return to report the withdrawals. Finally, if you were not charged a 10% penalty, then do not pay it.
I am a Canadian who left and worked in HK 3 years ago. I have a property in Canada which I had rented out. I’ve declared non-resident and have been submitting NR4 and NR6 to CRA for my rental income. I’m hoping to buy a bigger apartment and would like to know how it works for a non-resident? Thank you
Hi Shirley, you can buy a bigger apartment without affecting your non-residency status with the CRA, so long as the apartment is a rental property. It is more difficult for non-residents of Canada to get financing for Canadian real estate.
We have sold our principle residence and are planning to move back to India next month. I have a rental property for which the tenant has prepaid rent until 2019 April. I would be filing departure taxes next year. Is my tenant obligated to remit taxes to CRA next month on prepaid rent or only after I file departure taxes and CRA acknowledges me as non resident.
Hi Bindu, withholding tax should not be deducted from prepaid rents and deposits. Once you leave Canada and become a non-resident, you have to remit a 25% tax equal to the rent collected in the month (or rent applied to the month from the prepaid balance). You should register for a non-resident account number first, so that you can begin remitting tax payments to the CRA through online banking.
I moved to the UK (dual citizen) in August, 2018. My bank was alerted, and I have filled out the form they sent me, declaring that I am now a non-resident of Canada for tax purposes. I have no significant ties to Canada (property, children, spouse), and have a few secondary ties (I’m in the process of severing most of them). I have an small RSP account, 1 bank account, and a pension (that is no longer being contributed to). I am a resident of the UK, work and pay tax here. For my final tax return (2018);
1. Am I considered a non-resident?
2. Do I need to file Deemed Disposition (departure tax) and List of Properties by an Emigrant forms if I have nothing to declare on them?
Many thanks for your help, and for running such an informative site.
Hi Cora,
You are a non-resident as of August 2018. You do not need to file form T1161 as you have no assets to report (other than a bank account and pension, which do not need to be disclosed on this form). You do not need to pay departure tax. However, you do have to file a FINAL Return (departure tax return) with the CRA to inform them of your non-resident status. You will be taxable in Canada up to your departure date in August 2018. Please let me know if you need my assistance to prepare your Final Return.
Hi, I have a facebook page that I started to earn money through ads on the videos, facebook team told me I should fill Form W8Ben and form W7 so they can update my account and I can start earning the money. I am a resident of Canada and not planning on going to the US. is that something you can help me to fill and file? Thank you
Hi Omar,
Yes, I can help you apply for a US Individual Taxpayer Identification Number (form W7) and I can help you complete form W8-BEN. In addition to providing a certified copy of your passport, the IRS will also require a signed letter from Facebook showing your name and verifying that an ITIN is needed to make payments to you that are subject to federal tax withholding. Please also complete this checklist and return it to me by email to amadan@madanca.com
http://madanca.com/us-individual-tax-identification-number-checklist/
I am a dual citizen (Canada & US). I’ve been living in the US since 2002 and contributing regularly to my organization’s 401(k) plan. I plan to retire at age 65 and return to Canada. Once I’m back in Canada (and retired) I’m wondering how my 401(k) withdrawals will be taxed. Will I be taxed by both the US and Canada? Or just by one country? Any information you could provide would be greatly appreciated!
Hi Mark,
You will be taxed in both countries in respect of the 401K withdrawals that you make after you return to Canada. However, you can claim a foreign tax credit on your Canadian tax return for the American taxes paid.
Hello,
I am a Canadian citizen retired in the Philippines. My final return was filed in 2007 and I paid departure tax at that time. Currently I file on form 917. Most of my income is by way of pension but I still hold some Canadian shares. Cra’s assessment of my 2017 and 2018 returns resulted in much higher refunds than anticipated. It appears that I have not taken advantage of the tax treaty between Canada and the Philippines and some recoveries for prior years is probable. If possible I need help with this and future filings. Thank you,
Paul
Hi Paul,
Thank you for your comments. I would be pleased to help you recover prior years’ over-payment of taxes by filing a Section 217 Return for those years. If you would like to proceed, please send an email to me. My email address is amadan@madanca.com
Hi there,
I’ve been living and working abroad in Hong Kong for the past two and a half years and am in the process of moving back, I never declared as a non-resident when I left, and kept all my bank accounts in Canada since my parents are still living there. I’m not sure what kind of steps I should be taking when I come back at the end of the year? Do I need to file my taxes for the income I made in Hong Kong? If there are certain steps that require your services, how much would it be?
Thank you for your time!
Hi Nicole,
The answer depends on when you left and the ties that you kept with Canada after leaving. I need the following information from you:
– When did you move to Hong Kong?
– Do you have a home in Canada?
– Are you married and do you have children? If yes, did they move with you and when?
– What assets did you own as of your departure date and what were they worth at that time?
– What are your ties to Canada?
– What is the last tax year for which you filed a tax return with the CRA? Did you specify your departure date on that return?
The fee for a 30-minute consultation with me for tax advice is $110 + tax. The fee to file a departure return starts from $200 and the fee to file a Part-Year Resident Return (upon your re-entry to Canada) starts from $200. To book an appointment with me, please contact my assistant Sade: sade@madanca.com
Hi Im a canadian who owns property in the USA i understand i need to get a ITIN and was wondering if you could assist with that?
Hi Rob,
Yes, I can help you apply for an ITIN. Please complete this checklist and return it to me by email. http://madanca.com/us-individual-tax-identification-number-checklist/ Note that my email address is amadan@madanca.com
Hi Allan,
I am currently in Berlin, Germany. I have pretty much been outside of Canada for over 2-3 years. My last return back I decided to go back and finish the last of my university degree (as an older student) that i left unfinished, i stayed for about 1 year. I have no apartments/property/ties etc.
I have a drivers license, credit cards, and bank account. I haven’t had a health card for 6+ years.
Also, i have generally lived outside of Canada, and maybe over the past 8-12 years have spent roughly 2-3 years in Canada.
My question is, I have non-interest/dividend bearing securities with TD Canada. I’ve done reading, it’s non taxable and okay to have a bank account from what I’ve gathered.
Second, my passport ran out of pages from so many years of travelling, i filed for one in germany, and maybe said i was a canadian resident?
I also just opened an account with a Commodity clearing house in Canada to have access to a futures exchange. I think i registered as a Canadian resident… but it wasn’t with any thought. I don’t plan on returning to Canada, and outside of my parents I don’t have any ties.
Thanks,
KB
Hi KB,
Based on the length of time that you have been outside Canada, and the fact that your permanent home is in Germany, you are a non-resident of Canada.
I worked in the US from January to May 2020 and worked from June to December 2020 in Canada. My house is in the US and driving every weekend to the US. I am staying in an AIR BNB during work days in Canada. Should I add my income from the US and Canada for my US tax return or Canada? Am I considered resident for tax purposes on both countries?
Thank
Kristian
Hi Kristian,
You are a tax resident of the US if you meet the substantial presence test, are a green card holder, or are a US citizen. As a tax resident of the US, you are taxable on global income. Furthermore, you are a non-resident of Canada, which means you pay tax in Canada on your Canadian income only.
Good evening,
A residential property located overseas was gifted by my father to me a few years ago. My parents residing in that foreign country rented out this property. The rent income generated is solely used by my parents living in that country instead of its sole proprietor living in Canada. Do I have to pay tax in Canada being a Canadian citizen on the income generated such as rent on my foreign property although the revenue/income was never received or used by me? Do I have to fill out T776 form or mention the income or profit on T1135 form? How will CRA look at this case?
Thank you
Hi Sarah,
You became the beneficial owner of the foreign property on the date that your father gifted the foreign property to you. While you do not have to pay tax on the gift received, you are responsible for reporting the rents collected and expenses paid in respect of the foreign property. In addition, you must report the cost amount of the foreign property on form T1135, if the total cost amount of your foreign property exceeds $100,000 at any time in the year. Your cost amount of the foreign property is equal to its market value on the date that the gift was made, expressed in Canadian dollars. A certified appraiser in the country where the foreign property is located should be hired to determine the property’s fair market value. If you meet the conditions of the Voluntary Disclosure Program (VDP), I suggest that you file under the VDP to avoid penalties. Please let me know if you need my assistance.
Hello there, I’m interested in knowing if you are able to efile 1040NR ? Thank you and God bless!!
Hi Rafael,
Yes, we can electronically file (e-file) a US 1040-NR Return. Our fee to prepare a US 1040-NR return starts from $300 CAD + disbursements and taxes. If you are interested, please send an email to me: amadan@madanca.com
How much you would charge for the year of departure from Canada? S216, T1161, T1-part year, and 45(2) election
Hi Katrina,
My services and fees are as follows:
– Departure Return – $200 (starting price)
– Form T1161 – $100
– Section 216 Non-Resident Return (with one property) – $350
– NR4 (statement of rents collected and taxes remitted) – $100
– T1 Part Year Resident Return – $200 (starting price)
– 45(2) Election – $300
– Disbursements and taxes are extra
Hello Alan,
I have a few questions regarding Non-residence. If I have many secondary ties and intending to come back to Canada in the future but not sure the time, would I consider a Canadian resident? I will have a driver’s licence, health card, Canadian Bank account, membership, clothing etc. However, I won’t have any significant ties. I don’t want to fill NR 73 now. The second question, let’s say if I decide to be a non-resident (intend not to come back), do I have to pay back the GST/ HST in the previous years that I took?
Thanks
Hi Adam,
If you intend to return to Canada with a reasonable time frame (e.g. within 2 years of your departure), you can argue that you never permanently left Canada and so you are a factual resident of Canada. Should it be determined that you collected GST/HST payments while you were a non-resident, then you will have to return the payments received.
Hello, I’m a Canadian non-resident whose sole source of Canadian income is dividends/distributions on investments (through Questrade Brokerage). Withholding tax of 25% is automatically deducted. My information was to NOT file, however, last year I DID file through an Edmonton-based accountant that I found online. Even though Questrade withheld appropriate taxes for 2021, CRA claimed that I still owed several thousand dollars, which I paid. Between Questrade, CRA and my accountant, nobody has been able to explain why I seem to have paid taxes twice. Questrade has verified that the information it sent to CRA is correct. CRA seems to think the accountant is at fault, and I tend to agree, though this doesn’t resolve matters. Please advise if I need to refile, delete the filing or other steps. Also, please include possible fees and other necessary details
As a non-resident of Canada, the only time you have to file a tax return is if you worked in Canada, carried on a business in Canada or sold Canadian real estate. In all other cases, do not file. The withholding tax deducted represents your final tax obligation.
Please provide a copy of the return you filed and the related tax slips so I can see what happened. My email address is amadan@madanca.com
Hello Team,
I want to remain resident of Canada for tax purposes but want to locate to India soon. If I keep only secondary ties(no dwelling in Canada) and become factual resident, can I provide international address(mailing address in India) to CRA. Is there a challenge to file taxes while staying outside canada? Thank you!!
Hi Ashu,
To remain a factual resident of Canada, you must ordinarily reside in Canada, or at least have one primary tie to Canada (house, spouse, children). Keeping a mailing address and several secondary ties does not make you a factual resident. In any case, the Indian-Canada tax treaty will deem you to be a resident of India, because that’s where you will ordinarily reside and pay tax.
I want to file taxes for myself and my husband for Canada and USA for 2023
What are your charges?
Hi Kitu,
My fees are as follows:
1.US 1040 Return (married filing jointly) – $700
2.T1 Personal Tax Return – $270/person
3.Disbursements and taxes are extra. All prices are in Canadian dollars.
The above is an estimate only. I will need more information to give you an accurate quote.
I moved to Germany in October 2023 on a temporary youth mobility visa. I had worked in Canada till September 2023, for which I filed taxes as a resident. I did not declare to CRA about my departure as I was not sure if I will be returning to Canada soon. I have now found a job in Germany. I will start working from May 2024 in Germany. I do not have any property in Canada. I will not have any income in Canada. I maintain a bank account, credit cards with TD and a TFSA with 200-300 CAD investment. Will I be considered a non resident of canada for tax purposes or deemed non resident of Canada. I will have a permanent job and residential address in Germany. I do not want to emigrate from Canada just yet, I want to maintain the bank account and credit cards. How will the taxes work for me considering only salary income solely in Germany, will the tax treaty between Germany and Canada help in my case?
Hi Abhinav,
If you plan to stay in Germany permanently, you will be a deemed non-resident of Canada under the Canada-Germany Tax Treaty. You do not have any Primary ties to Canada and only a limited number of Secondary ties to Canada.
Can you please clarify what “Canadian asset ” is.Is it what was bought in Canada? For example, if an immigrant citizen wishes to leave Canada, is property they had before coming to Canada consideredCanadian Asset? Thank you
Hi Nikki,
The deemed disposition rule for emigrants of Canada applies to all assets, both Canadian and foreign. Certain assets are excluded from the deemed disposition rule such as Canadian real estate held by an individual, RRSPs, TFSAs, RESPs, and cash. Immigrants who were residents of Canada for less than 60 months are subject to the deemed disposition rule only on assets (Canadian and foreign) purchased during their Canadian tax residency period.
My wife and I left Canada in 2022 and moved to Colombia, South America. We filed a final tax return and deemed ourselves non residents with our tax filing for the 2022 tax year. We sold our primary residence and have no real ties no Canada. We have our bank accounts and RRSPs etc. we did not have any pension income for the 2023 tax year but as of this year I started to receive my CPP. Although we had done a final tax filing in 2022 will we have to start filing again because I am now receiving income via my CPP. Thanks
Hi James,
Do not file a Canadian income tax return to report income from CPP benefits if you are a non-resident of Canada. Service Canada/CRA should deduct a non-resident tax at source and issue a non-resident tax slip to you. You have the option of filing a Section 217 Non-Resident Return to recover a portion or all of the tax deducted.