Non-Resident
Tax Remittance

For out of the country real estate investors you need to report and remit taxes on rental income to Canada Revenue Agency (CRA).

As a non-resident of Canada, if you own and rent your Canadian property, you need to report and Remit Taxes on rental Income. You are subject to 25% tax
withholding on the gross rental income which must be remitted to CRA by the
15 th of the month, after the month the rental income is paid.

If a non-resident opted to withhold 25% of gross rental income, a return can be
filed within 2 years for the non-resident to claim a refund of all or part of the amount withheld based on the actual income and expenses incurred.

Another option that is available for non-residents is to withhold 25% income tax on expected net rental income instead of gross rental income. This can be established by completing and submitting the appropriate paperwork to CRA, which includes the NR6 form and corresponding expense sheet to be submitted prior to the first due rental payment. This will need to be filled up on annual basis each year the property is rented.

Some of the expenses that can be added to determine the estimated net rental
income are condo fees, property taxes, mortgage interest, rental fees, repairs,
property insurance. Should the estimated expenses be higher than the estimated
income, remittance can be nil. This is of course after receiving CRA approval of the submitted NR6. The NR6 form needs to be signed by the non-resident and a
local/resident agent, which in this case would be your property management company. Then the NR6 form is submitted to CRA for approval.

We recommend you connect with your accountant for further advise. If you do not have an accountant, we are happy to connect with one that works with section 216 filings.
NR6
NR4