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International Taxation
International Taxation Services
You are considered a non-resident for tax purposes if you permanently live outside of Canada and you do not have any residential ties to Canada. However, you may have some tax obligations to attend to and ensure that you are non-resident tax compliant.
What taxes do non-residents pay?
Non-residents of Canada are required to pay tax on their income earned in Canada. The following sorts of income do not require a return to be filed. Income is deducted at source and remitted to CRA.
- Interest and dividends
- Rent and royalties
- Retiring allowances
- RRSP and RRIF payments
- Annuity payments and management fees
Income Tax returns are required to be filed for the following types of income :
- Business income earned in Canada, and
- Proceeds of disposition of taxable Canadian Property such as real estate and business interests
Non-Residents Investing in and Disposing of Canadian Rental Real Estate
Before the non-resident investor acquires Canadian rental real estate consideration should be given to the best manner in which such real estate should be held. For example – held personally by non-resident individuals, by a Canadian corporation, by a foreign corporation, by a trust or other family members.
As a Non-Resident owing a rental property in Canada, Electing under section 216 allows you to pay tax on your net Canadian-source rental income instead of on the gross amount. If the non-resident tax withheld by the payer is more than the amount of tax payable calculated on your section 216 return, CRA will refund the excess to you.
When a non-resident person disposes of Canadian real estate the CRA requires that 25% of the sale proceeds be withheld by the legal firm facilitating the transfer of title. The 25% withholding can be reduced by filing a request for a Certificate of Compliance with the CRA. Should there be a capital gain on the sale of the real estate we can reduce the withholding to 25% of the gain rather than the sale proceeds. Should there be no capital gain on the sale we can have the entire 25% withholding refunded.
Our Surrey accounting firm has years of experience and can assist in providing the services required to complete the Non-resident tax returns.
Non-residents of Canada tax services include:
- Determination of eligibility for treaty exemptions
- Non-resident owners of Canadian real estate
- Tax-efficient ownership structures for offshore owners
- Assistance with NR4/NR6 Canadian income tax filings
- Planning for disposition of Canadian real estate
- Clearance certificates
- Section ITA 115, ITA 116 and 216 Canadian income tax returns
- Employer compliance
- Assistance with Canadian income tax filings
- Treaty exemptions for employees
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International Taxation FAQ’S
The most frequently asked questions about international taxation services.
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
