Non Resident Individual Tax Services

Navigate Non resident tax challenages with ease

What are some factors the CRA reviews in determining your tax residency status?

working women sitting on office desk
working women sitting on office desk

Non resident taxation in Canada

You are obligated to submit Canadian tax returns when you earn income from Canadian sources through the following avenues

Earning Employment Income

Dividends or Capital Gains

Retirement and pension payouts

Annuity and registered fund payments

Rental Income

Sale of property

Key Considerations When Severing Residential Ties with Canada

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Tax Residential Ties

Ensure the proper severance of your tax residential ties with Canada.

Asset Valuation

Obtain a comprehensive valuation of all your assets since a deemed disposition may apply.

Income Strategy

Plan a strategy for any future income generated and assess potential tax implications.

Canadian Corporation

If you own a Canadian corporation, be aware that your residency status may change, which could necessitate filing requirements.

Non-Resident Account

Consider the need to register a non-resident (NR) account if you will earn rental or other investment income earned in Canada.

window office desk

Non resident CRA services we can assist with

Clearance certificate for disposition of real estate property in Canada

25% withholding of Non-Resident Rent Collectors-Sec 216 (NR4 and NR6 filing)

Employment and Contractor income(Processing T4 & T4A-NR)

Treaty based exemptions (Regulation 102 and Regulation 105)

Tax waivers based on treaty agreements

Investment income reporting

Why Us

Financial Education

We prioritize educating our clients, equipping them with the knowledge to make sound financial decisions for their future success.

Seasoned Experts

Our experienced team offers deep expertise, ensuring reliable and comprehensive solutions for all accounting and tax needs.​

Personalized Solutions

Tailoring our services to each client's unique circumstances, we deliver customized solutions that address specific goals and challenges effectively.​

Modern Approach

Embracing cutting-edge technologies and innovative methods, we provide efficient and forward-thinking accounting and tax services to meet the demands of today's business landscape.​

FAQ

A non-resident for tax purposes in Canada is an individual who doesn’t reside in Canada or doesn’t have significant residential ties in the country, as defined by the Canada Revenue Agency (CRA).

Your residency status is determined by factors like the number of days you are physically present in Canada, residential ties, location of your primary home and direct family. Also, you can file a NR73 or NR 74 forms with the CRA for them to determine your residential status.

The main difference is that residents are taxed on their worldwide income, while non-residents are generally only taxed on their Canadian-sourced income.

Common types of taxable income for non-residents include employment income, business income, rental income, pension income, and taxable capital gains realized from Canadian sources.

Depending on the type of income, non-residents may claim certain deductions and tax credits, but they are typically more limited compared to residents.

It’s essential to retain records such as pay stubs, rental income statements, tax receipts, and any correspondence related to your Canadian tax affairs. Keeping organized records can help support your tax return in the potential case of CRA audit.

Penalties can apply if you fail to file your tax return on time or if you provide inaccurate information. Penalties are assessed on a case-by-case basis and can include fines and interest on overdue taxes.

Non-residents of Canada are subject to tax on income received from sources in Canada. The specific tax treatment can vary based on the type of income. Generally, the Canadian income is subject to Part XIII tax (through withholding) or Part I tax (filing income tax return).

International investors are subject to Part XIII (withholding) tax on common types of Canadian income such as dividends, rental income, pension payments, registered retirement savings plan payments and management fees. Generally, interest income is exempt from Part XIII tax if the payer is not related to you. The amount of Part XIII that the payer will withhold from your income is typically 25% of the income. However, a tax treaty between Canada and your home country can reduce the rate. The withholding tax is considered the final tax obligation and no Canadian income tax return is required.

Canada has tax treaties with many countries, and these treaties often reduce the Part XIII tax. The specific rates can vary based on your home country. For example, if you are an international investor who is a US tax resident, then your Canadian dividend income can benefit from a lower (15%) withholding tax rate.

International investors may be eligible to claim a foreign tax credit in their home country for taxes paid in Canada to avoid double taxation.

Non-residents need to pay Part I tax on certain types of Canadian income, where they have to file a Canadian income tax return to calculate the final tax obligation to Canada. Common types of income subject to Part I tax are employment income in Canada, business income in Canada, and taxable capital gains from selling Canadian real estate property.

Without planning, the Canadian payer will withhold 25% from the gross rent and remit to Revenue Canada. However, by filing the NR6 undertaking and sec 216 elective return, you can effectively pay tax on net rental income earned in Canada.

How much will it cost for TMP non-resident Corporate services?

Clearance Certificate

$1,200-$1,500 CAD

Non resident Personal tax filing

$500 CAD

NR6 Elections

$750 CAD

Special Elections and waivers

$950-2,000 CAD

Next Steps

Step 1

Please fill in this questionnaire

Step 2

Schedule a consultation with one of our CPAs to receive a final quote and a checklist of the required data

Step 3

Upload requested data onto cloud folder shared

Let’s collaborate!

Have a question, an idea, or just want to learn more about Triple M Professional Corp.? We’re all ears. Fill out the form or Email us and we’ll connect with you soon.

Markham Office
905-237-6424
675 Cochrane Dr East Tower 6th Floor, Markham, ON, L3R 0B6
Toronto Bay Street Office
416-333-1116
401 Bay Street, 16th Floor Toronto, ON, M5H 2Y4
San Francisco Office
415-366-5667
590 California Street 16th Floor, San Francisco, CA 94104
New York Office
212-651-9101
555 Madison Ave 5th Floor Manhattan,
NY 10022
Toronto King Street West Office
416-333-1116
100 King Street West, Suite 5600, Toronto, ON, M5X 1C9
Markham Office
905-237-6424
675 Cochrane Dr East Tower 6th Floor, Markham, ON, L3R 0B6
Toronto Bay Street Office
416-333-1116
401 Bay Street, 16th Floor Toronto, ON, M5H 2Y4
San Francisco Office
415-366-5667
590 California Street 16th Floor, San Francisco, CA 94104
New York Office
212-651-9101
555 Madison Ave 5th Floor Manhattan,
NY 10022
Toronto King Street West Office
416-333-1116
100 King Street West, Suite 5600, Toronto, ON, M5X 1C9