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Information for Non-Residents

The following is a summary of the ongoing filing requirements for non-residents who own property in Canada.

Form

Reason

Period

Due Date to CRA

NR4

Reports gross Rent

Annual

Mar. 31 of the following year

Completed by your agent

NR6

Reduce Withholding tax

Following year

Dec. 31 of current year

Completed by non-resident and agent

GST

Report GST Collected/Paid Out

Annual

Mar. 31 of following year

T1

Personal Income Tax Return

Annual

June 30 but preferably no later than April 30 by non-resident

T1261

Application for an individual tax number (ITN) for a non-resident

One time in order to file a tax return

not applicable

Note 1: “the agent” must be a resident of Canada to whom the rental payments are paid or credited on behalf of the non-resident. The Canadian “agent” accepts responsibility to file an income tax return or pay tax according to the NR6 undertaking. KM Cox does not act as an agent for any non-residents.

Note 2: KM Cox & Company Inc. will act as your representative in matters pertaining to filing your GST and T1’s with Canada Revenue Agency. We will assist with completing your NR6, however your Canadian agent (usually the assigned property manager collecting rents on your behalf) must sign the form and take responsibility for remitting the withholding tax.
 

Selling Canadian real estate creates its own set of filing requirements for the non-resident. Any gain on the sale of rental or personal property in Canada will be subject to tax in Canada.

Form

Reason

Period

Due Date to CRA

T2062

Request for a certificate of compliance related to the disposition

Date of Sale

No later than 10 days after the date of disposition*

T1

personal tax return to report final sale

as above

as above

*The penalty for failing to submit notice on time is $25 per day to a maximum of 100 days of $2,500. Therefore, it is imperative that we receive the necessary information from your legal counsel in order to complete this notification on time.