Non-Resident Income & Rental Tax Return
Unravelling the complex nature of non-resident related tax matters.
Non-Resident Income & Rental Tax applies if you are not a resident of Canada and earn rental income from a Canadian property. If you are a non-resident of Canada who owns and rents out property here, you may be wondering about tax requirements for non-residents who earn rental income. The payer has to withhold non-resident taxes at a rate of 25% on the gross rental income. The payer has to send the tax payments to the CRA by the 15th day of the month following the month of the rental income. You can file a non-resident income tax return to claim the expenses related to the property.
Non-residents would also have the ability to remit taxes on the net rental income basis (rental revenue minus all rental expenses) by completing an NR6 form. Note that most property management firms do not offer to file through this method as it creates additional responsibilities and penalties for non-compliance. The non-resident cannot request to file an NR6 form themselves, as it must be completed through an agent and that agent cannot be a family member. Even though there is a turnaround time for CRA to process your return and give you back your refund, it really is a short term cash flow issue when you think about it.
If you are a non-resident and have rental income, please contact us for a consultation for accounting services Vancouver, before you are issued a penalization by the government.
Non-Resident Income & Rental- Services Include:
- Report income & paid taxes
- Using related costs for reducing taxes
- Applying for obtaining ITN and NR number for non-residents
- Report monthly remittances & taxes to CRA
- Issuing NR4
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