Taxes for Non-Residents

Are you a non-resident in Canada and looking for handling all your individual and business’s tax needs. You can trust Filing Taxes, as they know the international & cross border taxes.

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Information regarding income tax for Non-Resident Corporations

A non-resident corporation should file a T2 return with the Canada Revenue Agency. You can hire Filing Taxes who are capable of making the process easier for all non-resident corporations in filing their T2 return, schedules, and General Index of Financial Information. It will help the non-residents to obey with the income tax rules and regulations.

Schedule-97 Additional information on Non-Resident Corporations in Canada

  • Schedule 91 has been developed for all non-resident corporations. It is information regarding claims for Treaty-Based exemptions.
  • A non-resident corporation must complete Schedule 97 i.e. Additional Information on Non-Resident Corporations in Canada. This schedule has been evolved to recognize the type of income earned by all non-resident corporations in Canada.
  • If the corporation gets rid of TCP (Taxable Canadian Property), then notification must be sent to the CRA by the corporation, and you must get a certificate of acceptance.
  • If you receive any payment for the services provided in Canada, that must be subjected to a 15% tax retainer. It should be sent to the CRA by the person who's making the payment.
  • A non-resident corporation must also register for a payroll deductions account.
  • If you receive a passive income from Canada, you may have to pay tax. Also, a non-resident corporation whose business is in Canada may have to withhold tax under Part XIII of the Income Tax Act if it pays a specific kind of income to another non-resident.
  • The Canadian agents and their non-resident clients will be noted of the charges beared when they will file their Form NR6 for a tax year.
  • The non-residents who invest their money in Canadian mutual fund investments may be determined non-resident withholding tax.

Information on income tax for Non-Resident Individuals

Filing Taxes can help prepare to file your non-resident tax return by estimating taxes on all income sources related to Part I Tax & Part XIII Tax. They will also help you file section 216 return & section 217 return by fulfilling various forms like Form NR73 & Form T1161. We will also help you to create slips like NR4 Slip, NR4 ProForma Letter, NR6 Slip. And lastly, we will help you file the Departure Tax Return for non-residents.

Are you a non-resident in Canada, and seeking help to file your non-resident return, then you can contact us today.

  1. What do you mean by non-resident tax?
  2. If a person spends a good amount of time in two different countries, that individual must file a tax return as a resident of one country and a non-resident of another country. If you have invested in a country but do not hold permanent citizenship, then you must also file a non-resident tax return for that particular country. Non-resident tax is the tax estimated on the income of a non-resident.

  3. Should a non-resident file corporation income tax?
  4. Yes, all non-residents need to file a corporation income tax (T2) in the following circumstances:

    • If he has a business in Canada
    • If he has a taxable capital gain
    • If it is liable of Canadian taxable property
  5. Do non-resident individuals pay tax in Canada?
  6. Being a non-resident in Canada, you pay tax on income you get from the sources in Canada. What type of tax you must pay and the requirement to file an income tax return depends on the type of income you gain. In general, the Canadian income obtained by a non-resident is usually subjected to Part XIII tax or Part I tax.

    According to the rule, a non-resident usually pays 25% in taxes. But the tax rate can lower down to 15% if there is a tax agreement between the two countries.

  7. Can a non-resident invest in Canada?
  8. Yes, a non-resident individual can invest in Canada. There are certain limitations to non-residents in Canada, but normally it is easy for non-residents to invest in Canada. Many non-residents invest in Canadian real estate.

    According to the Canada Revenue Agency, any income earned by a non-resident in Canada is subject to Canadian tax. As per the rule, a non-resident generally pays 25% in taxes. The tax rate can lower down to 15% if there is a tax agreement between the two countries.

  9. What do you mean by Canadian non-resident?
  10. For income tax reasons, you are regarded as a non-resident of Canada, if you generally live in another country. Another reason maybe if you have lived outside Canada throughout the year or stayed in Canada for less than 183 days.

    If you are a non-resident of Canada, it does not mean you have to give up your permanent citizenship. You become a non-resident only for tax reasons. However, you must do without your health care and child benefits. But once you return to Canada, your health care and child benefits will be set in motion within a few months.

  11. Who is a tax resident of Canada?
  12. If you keep important links in Canada when living or travelling outside the country, then you are a factual resident of Canada for tax purposes. The term factual resident means that though you left Canada, you are still regarded as a resident of Canada for income tax purposes.

  13. Can a non-resident in Canada purchase a house?
  14. If you purchase a property in Canada, the non-residents are subjected to the same taxes as Canadian residents. Non-residents who buy a residential property in or near Toronto will be needed to pay Ontario's Non-Resident Speculation Tax. That tax is 15 percent of the purchase price.

  15. Can I be resident in 2 countries?
  16. There is a possibility of being a resident in more than one country simultaneously for tax reasons. It is known as a dual residence. If you are resident in the US and another country, you must look at the tax agreement between the two countries to know where you should pay tax.

  17. Can a non-resident open a bank account in Canada?
  18. Yes, you can open a bank account if you have proper identification in Canada. To open a bank account, you must visit the financial institution personally.