Taxes for Non-Residents

GTA Accounting is fully aware of the complex nature of international & cross border taxes.
We can handle all your individual and business needs for filing non-resident taxes with CRA.

Income Tax Information For Non-Resident Corporations

GTA Accounting is fully capable to facilitate all non-resident corporations in filing their T2 return, schedules, and General Index of Financial Information. In order to fully comply with income tax rules and regulations for non-residents,

We Relieve The Pain From The Following Tax Obligations

  • Corporations must complete Schedule 91 i.e. Information concerning claims for Treaty-Based Exemptions.
  • If you are a non-resident corporation, complete Schedule 97 i.e. Additional Information on Non-Resident Corporations in Canada. This schedule has been developed to identify the type of income earned in Canada by all non-resident corporations.
  • If the corporation disposes of TCP (Taxable Canadian Property), the corporation must notify the CRA, and obtain a certificate of compliance.
  • Any payment received for services provided in Canada is subject to a 15% tax withholding, which must be remitted to the CRA by the person making the payment.
  • Non-resident corporations may also register for a payroll deductions account.
  • A non-resident corporation may have to pay tax on passive income it receives from Canada. As well, a non-resident corporation carrying on business in Canada may be required to withhold tax under Part XIII of the Income Tax Act if it pays or credits certain kinds of income to another non-resident.
  • Canadian agents and their non-resident clients are reminded of the obligations assumed when they filed their Form NR6 for a tax year.
  • Non-residents who invest in Canadian mutual fund investments may be assessed non-resident withholding tax.

Income Tax Information For Non-Resident Individuals

GTA Accounting can also help you file your non-resident tax return by calculating taxes on all income sources which are related to Part I Tax & Part XIII Tax; filing section 216 return & section 217 return; completing different forms like Form NR73 & Form T1161; generating slips like NR4 Slip, NR4 Pro Forma Letter, NR6 Slip and finally filing of a Departure Tax Return for non-residents.

If you are a non-resident looking to file your non-resident return or looking to become a non-resident for tax purposes, then feel free to reach out to us.

What is a non-resident tax?

When an individual spends considerable time in two countries, they must file a tax return as a resident of one country and a non-resident of the other. You also need to file a non-resident tax return if you have invested in a country where you do not hold a permanent residency or citizenship. Tax calculated on the income of a non-resident is known as non-resident tax.

Is it necessary for a non-resident to file a corporation income tax?

Yes, it is necessary for all non-residents to file a corporation income tax (T2) in the following situations:

  • it carried on business in Canada
  • it had a taxable capital gain
  • it disposed of taxable Canadian property

Do non-residents pay tax in Canada?

As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.

As a rule of thumb, a non-resident generally pays 25% in taxes. The tax rate can come down to 15% if there is tax treaty between the two countries.

Can I invest in Canada as a non-resident?

Yes, you can invest in Canada as a non-resident. There are certain restrictions on a non-resident but generally it is easy for non-residents to invest in Canada. A lot of non-residents invest in Canadian real estate.

According to the Canada Revenue Agency, as a non-resident, any income you earn in Canada is subject to Canadian tax. As a rule of thumb, a non-resident generally pays 25% in taxes. The tax rate can come down to 15% if there is tax treaty between the two countries.

What is a Canadian non-resident?

You are considered a non-resident of Canada, for income tax purposes, if you normally or routinely live in another country, or if you don't have significant residential ties in Canada and you lived outside the country throughout the year or your stay in Canada was less than 183 days.

Being a non-resident of Canada does not mean that you have to give up your permanent residence or citizenship. You become a non-resident only for tax purposes. Although you must forego your health card and children benefits. But once you are back in Canada both health card and child benefits will be instated in couple of months.

Who is a tax resident of Canada?

You are a factual resident of Canada for tax purposes if you keep significant residential ties in Canada while living or travelling outside the country. The term factual resident means that, although you left Canada, you are still considered to be a resident of Canada for income tax purposes.

Can a non-resident buy a house in Canada?

Non-residents are subject to the same land transfer taxes as Canadian residents when they purchase property here. Those buying residential property in or near Toronto will be required to pay Ontario's Non-Resident Speculation Tax, which is 15 per cent of the purchase price.

Can I be resident in 2 countries?

It is possible to be resident for tax purposes in more than one country at the same time. This is known as dual residence. If you are resident in the UK and another country, you must look at the tax treaty between the two countries to find out where you should pay tax.

Can I open a bank account in Canada as a non-resident?

You may be able to open a bank account with the proper identification in Canada if you're not a Canadian citizen or if you live in another country. You may need to go to the financial institution in person to open a bank account.

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