I’m a non-resident owning rental property in Canada. I’m confused between the NR4 slip, and NR6 form.
Allan Madan, CA
By filling form NR6 with the CRA, your agent/tenant will only withhold 25% of the net amount of your monthly rent, versus 25% of the gross amount of your monthly rent. The NR6 form should be filed at the end of the year for the following year. For example, if your tenant pays you $3,000 per month in rent, without filing the NR6 form, the tenant/agent would have to remit 25% of the $3,000 to the CRA in the form of withholding taxes.
However, by filing the NR6 form with the CRA, the withholding tax would be reduce to 25% of your monthly net profit (rents collected minus rental expenses). The NR4 slip is due by March 31 of the following taxation year. This slip reports the total rent paid, and the amount of taxes withheld and remitted to the CRA for the calendar year. This slip is included with the Non Resident Rental Return (Section 216 Income Tax Return), which is filed annually.
It is important to note that the CRA only issues the NR4 slip to you if it’s requested by you.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
.png)
