Non-Residents

You are a non-resident for tax purposes if you routinely live in another country or do not have significant residential ties in Canada, or you stay in Canada for less than 183 days in a tax year.

Click here to see CRA website.

Non-residents landlords are required to deduct and pay 25% of the gross rent no later than the 15th day of the following month that the rental income was recieved. Generally this tax withheld is considered your final tax obligation. However, under section 216 of the Income Tax Act, you are allowed to pay tax on your net Canadian sourced rental income instead of the gross amount and you may pay less tax.

The NR4 slip details the gross rental income and non-resident tax withheld and remitted for the taxation year. Proactive Management will issue NR4 slips for all non-resident owner clients on or before March 31st every year.

An NR6 allows non-residents to withhold and remit non-resident tax at 25% of the net rental income amount instead of the gross rental income amount. At Proactive Mangement we assist in completing and filing the NR6 on behalf of non-resident owners each year.

As a non-resident of Canada, you can choose to send the CRA a seperate Canadian tax return to report your rental income from property in Canada. Choosing to send CRA this return is called 'Electing' under section 216 of the Income Tax Act.

We at Proactive Management can assist with the section 216 filing through our accounting team for a small fee.

Ask us how we can help with this.