非税务居民楼花转让

Transfer of uncompleted property for non-tax residents

Non-tax residents cannot avoid tax clearance when selling houses or pre-sale properties. If you cannot get the tax clearance certificate in one day, you cannot get the full sale proceeds in one day. Many customers are confused about whether they are tax residents or non-tax residents, and think that as long as they take the initiative to file taxes, they are tax residents. As a result, when the house is sold, the sale proceeds are withheld by lawyers and cannot be recovered for a year or two. They may even have to "fly back to Canada" twice to handle taxes, causing a lot of unnecessary losses. We recommend that you consult professionals to understand the rules and steps, and maximize your benefits in the most worry-free way.
Tax law S116 stipulates that non-tax residents who sell investment properties in Canada must also submit 25% of the mortgage sales price to the tax bureau, and your lawyer will be responsible for withholding it. Within 10 days after the property is transferred, you need to apply to the tax bureau through an accountant Tax clearance certificate certificate of compliance ), which is used to review the net income generated after the sale of the property. Once approved, the lawyer will return the remaining amount of the previously withheld amount. If you have more than one property to deal with, you need to submit a tax clearance application separately. At the same time, you need to be aware that the application takes time, and the fastest tax clearance certificate will take three months. If you cannot obtain the tax clearance certificate on time, the lawyer will hand over the withheld 25% directly to the tax bureau.

Of course, considering that there will be expenses such as attorney fees after the property is handed over, the seller can report the expenses to the tax bureau again before April 30 of the second year after the property is handed over and sold, so as to further reduce the net income and obtain a corresponding tax refund.

Various audits and calculations, from selling a house to finally getting a tax refund, this whole process is conservatively estimated to take at least one and a half years. Indeed, due to its large size, the system will appear clumsy during operation. But each step has its meaning, it is to serve more ordinary people more fairly and justly, and it is finalized after discussions among all parties. Jump out of the victim's perspective and change your thinking. In fact, it is not difficult to find that if we can follow the rules step by step, although it seems to be a detour, it is actually the most time-saving, labor-saving and cost-saving way (you can refer to Article here for more details).

back to blog

GST/HST Housing Tax Rebate