Non-residents with Canadian sourced income - S115 or S216 returns
Non-residents of Canada are required to report only their Canadian sourced income to Canada. There are four common types of income that a non-resident of Canada might have that would require filing a Canadian tax return.
One of the most common scenarios is a non-resident with a Canadian rental property. In many cases this results when a Canadian citizen who has been transferred abroad for a year or more who rents out their principal residence while gone. There are several forms that must be filed when a non-resident owns Canadian real estate that is rented out including NR6's, NR4's, and S216 tax returns. If you or your property manager are not familiar with these you should contact me immediately. I can provide a list of property managers that have many non-resident clients and will file the appropriate paperwork on time. Alternatively I can file the paperwork for you if you or a friend manages your property. Services I offer to a non-resident of Canada with Canadian real estate include:
Another common scenario is a non-resident with investments held by a Canadian bank or investment company. While not all such income is taxable, I can help you sort out what is and isn't taxable according to the treaty with your country of residence and help you deal with reporting it properly. Most times the bank or investment company will do it for you as long as you tell them ahead of time that you are a non-resident of Canada.
The third scenario that I deal with occasionally is that of a non-resident in Canada working on a short term assignment of usually less than the 183 days in a year necessary to trigger Canadian tax residency although longer stays are possible as a non-resident by invoking the tax treaty between Canada and your country of residence. This reports income earned while in Canada and typically applies to a foreign national in Canada on a short term or rotational assignment who is exempted from being a tax resident of Canada because of the income tax treaty.
The final scenario involves senior non-residents that are abroad but continue to collect Canadian pensions. This is an optional tax return reporting pension income (RRSP's, company pension or CPP/OAS) and it may be beneficial to file this return if you have little or no other sources of income worldwide. It allows you to access personal tax credits and the low graduated tax rates of a Canadian resident which would reduce the taxes below the rate usually withheld at source.
One of the most common scenarios is a non-resident with a Canadian rental property. In many cases this results when a Canadian citizen who has been transferred abroad for a year or more who rents out their principal residence while gone. There are several forms that must be filed when a non-resident owns Canadian real estate that is rented out including NR6's, NR4's, and S216 tax returns. If you or your property manager are not familiar with these you should contact me immediately. I can provide a list of property managers that have many non-resident clients and will file the appropriate paperwork on time. Alternatively I can file the paperwork for you if you or a friend manages your property. Services I offer to a non-resident of Canada with Canadian real estate include:
- Counseling before you leave to explain all the rules.
- Filing a 45(2) election at departure to deem your house your principal residence while gone.
- File NR6's in November each year to reduce the required withholdings to 25% of estimated net income.
- File NR4's in January/February each year to report actual collected rents and taxes withheld.
- Prepare and mail your Canadian tax return reporting just the rental income before the June 30th deadline.
- Obtain a clearance certificate if you sell the property while a non-resident.
- Act as your mailing address for any correspondence from the Canada Revenue Agency if you wish.
- Deal with the Canada Revenue Agency on your behalf to straighten out any issues that may arise.
Another common scenario is a non-resident with investments held by a Canadian bank or investment company. While not all such income is taxable, I can help you sort out what is and isn't taxable according to the treaty with your country of residence and help you deal with reporting it properly. Most times the bank or investment company will do it for you as long as you tell them ahead of time that you are a non-resident of Canada.
The third scenario that I deal with occasionally is that of a non-resident in Canada working on a short term assignment of usually less than the 183 days in a year necessary to trigger Canadian tax residency although longer stays are possible as a non-resident by invoking the tax treaty between Canada and your country of residence. This reports income earned while in Canada and typically applies to a foreign national in Canada on a short term or rotational assignment who is exempted from being a tax resident of Canada because of the income tax treaty.
The final scenario involves senior non-residents that are abroad but continue to collect Canadian pensions. This is an optional tax return reporting pension income (RRSP's, company pension or CPP/OAS) and it may be beneficial to file this return if you have little or no other sources of income worldwide. It allows you to access personal tax credits and the low graduated tax rates of a Canadian resident which would reduce the taxes below the rate usually withheld at source.
2018 - 2019 Canadian Non-Resident Rental Return (S216) - Due June 30th, 2020 - 1 or 2 taxpayers/1 rental property
If you are a non-resident of Canada for tax purposes but have Canadian real estate rental income then you need this kind of return. If you select this option I will need you to authorize me as a representative at some point. Please authorize Expatax now if you have any earlier issues you need cleaned up otherwise you may do so later. Once you order this return, we will send you a link to a dropbox folder and you can upload any scanned documents that you have so that we can get started.
Your tax return will be returned to you via Box or DropBox (if you have a preference please indicate in notes to seller at checkout) and you will receive an email with a link to click on to retrieve your password protected file once it is complete.
Your tax return will be returned to you via Box or DropBox (if you have a preference please indicate in notes to seller at checkout) and you will receive an email with a link to click on to retrieve your password protected file once it is complete.