Non-Resident Rental Property Claim Non-Resident Rental Property Claim

Introduction to Canadian non-resident real estate rental tax declaration services

Canadian Revenue Agency stipulates that non-tax residents (such as investors from China, the United States or outside Canada) The rental income of real estate in Canada is subject to 25% withholding tax at the source of incomeThis prepaid tax is often more than the actual amount that should be paid. In April next year, you can declare the non-resident tax to return the overpaid tax from the Canada Revenue Agency.

Why is this happening? This is because the Canadian tax base is based on the net rent (that is, the gross rental income minus the property-related expenses, such as land tax, management fees, etc.), and the withholding is based on the proportion of the gross rent income. , so Canadian non-residents who have rental income in Canada generally pay more taxTherefore, the Canada Revenue Agency allows Canadian non-tax residents to file tax returns in terms of rent taxation to refund overpaid taxes This is called "Income Tax Filing for Electing Under Section 216"

Who is a non-tax resident of Canada

  1. Foreign residents, persons without Canadian permanent resident status or Canadian citizenship
  2. Persons who have left Canada for a long period of time and have no ties to Canada, including Canadian permanent residents and Canadian citizens

Declaration price of rental income for non-tax residents

1. The annual tax return price for a non-tax resident without a Canadian agent is $300. This tax return includes:

  • Prepaid tax settings for 12 months of the year;
  • Reconcile with the tax bureau at the end of the year and apply for NR4;
  • and finally gather information from clients and submit tax forms

2. The annual tax return price for a non-tax resident with a Canadian agent is $400. This tax return includes:

  • At the beginning of the year, remind guests to collect materials for NR6 application and submit;
  • According to the feedback from the tax bureau, set up the annual prepayment tax or directly help customers to pay the prepaid tax to the tax bureau;
  • and all other services included in 1.

Our non-resident property rental tax declaration service process steps are

  1. Sign a Canadian personal tax declaration service agreement with customers;
  2. Send the Canadian personal tax declaration information collection form to the client, the client fills it out carefully, and collects relevant tax declaration information at the same time; if your Canadian real estate agency has helped you withholding, please provide the proof of withholding (NR4 form)
  3. We will process the Canadian non-resident rent tax form according to the information and materials provided by the customer and after confirmation with the customer;
  4. After completing the personal tax form, ask the customer to sign for confirmation;
  5. Submit the personal tax form by mailing to complete the Canadian non-resident real estate rental tax declaration;

Benefits of NR6

By submitting NR6 application to CRA, the property owner only needs to pay 25% of the monthly net rental income (net amount) in addition to tax deductible expensesThis can significantly reduce taxes on rental income and increase cash flow from rental properties

Steps for non-residents to pay NR6 tax on rental income in Canada

1. After purchasing the property, find a Canadian agent to manage your rental property

2. Ask your accountant to submit your NR6 form based on the estimated income and expenditure of the rental property for the year, of course, you can also submit it yourself

Important: The NR6 filing deadline is December 31st of the year preceding the rental property, but it is worth noting that you need to have Get the approved letter of NR6

For example: If you want to rent out your property in January 2019, it is planned that you will receive your January rent on January 10, which means , before January 10, 2019, you need to have the approved letter of NR6Therefore, although the deadline is December 31, we recommend that you apply as early as possible, because it takes a long time for the tax bureau to review NR6

3. As stated above, you need to have a real estate tax withholding agent and the agent must be a resident of Canada

4. The agent shall deduct 25% of the net rental income according to NR6 calculation every month

5. Prepare to submit the form by March 31 of the following year

6. Prepare and file a Canadian Non-Resident Income Tax Return under Section 216 of the Canada Income Tax Act for net taxable rental income

7. Once your income tax return has been assessed and you have received a non-resident tax assessment from the CRA, please review it carefully as the CRA may make changes after review

* Repeat steps 2 to 7 each year until the property is sold or you become a Canadian tax resident


Question: I never thought about filing a tax return to get back the excess tax. Is it still too late?
Answer: Everything has a time limitThe Canada Revenue Agency stipulates that within two years from December 31 of the tax year, you can return the tax related to the overpaid rental income by declaring the Canadian non-resident taxThat is, your overpaid withholding tax in 2018 can be returned before December 31, 2020After 2020, you cannot apply for refundThe following year, and so on

Canadian non-resident real estate rental tax declaration service charges:
Our charges have always been clearly marked and have not changed in the past five years: 300 per person per property per year Our service tenet is to improve efficiency, reduce unnecessary costs, and maintain high-quality and low-cost services

Q: My gross rental income has been withheld by the agency, how should I file a tax return?
Answer: Please provide us with the Canadian intermediary withholding certificate, which is called NR4, and we can combine the real estate information you provide to help you with the Canadian non-resident real estate rental tax declaration

Q: How long will the tax filing service take?
Answer: Generally speaking, we will process the tax form within seven working days when the information and materials submitted by the customer are complete.

Q: Are your tax returns submitted electronically or by mail?
Answer: The Canada Revenue Agency stipulates that tax returns for non-resident rental income in Canada must be submitted by mailingWe usually submit by express forwarding

Q: Do you provide consulting services for Canadian real estate rental taxation?
Answer: We provide customers with financial, taxation and business consulting all year round24/7 online consultationopen seven days a weekIf you need anything, you can make an appointment in advance

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