Non Resident Tax
PLEASE READ THE INFORMATION BELOW BEFORE FILING OUT THE FORM.
If you are a non resident you are required the remit the withholding tax from your rental income. If you are a non resident and you engaged Bolld Real Estate Management as your agent, we as your agent MUST remit the withholding tax to Canada Revenue Agency.
Who is a non resident?
Non resident is a person who does not live in Canada for the majority of the year. Even if you are a Canadian citizen you might be considered as a non resident if you live/work outside of Canada for the majority of the year. If you are not sure you can request a ruling from the Canada Revenue Agency which will decide whether you are considered a non resident or not on factual basis.
How much do I have to remit?
Every non resident is required to remit 25% of all gross rents collected unless an NR6 application was approved. If you have an NR6 application approved, you are required to remit 25% of net rental income based on your estimated net rental income calculation.
What is NR6 application and how can I apply?
NR6 application is meant to reduce a possible financial hardship that non residents might incur as a result of imposed non resident withholding tax. It is meant for persons whose net rental income is lesser or close to the 25% of their rent which would mean they would have to pay the withholding tax out of their pocket.
In order to have the NR6 application approved you must have a Canadian agent (like Bolld Real Estate Management). It does not have to be a property management. It can be your accountant or any Canadian resident the age of 19 or more. The chosen agent has to be aware of the liability comes with the role. If the non resident fails to file the tax return by June 30 of each year, the Canadian agent is responsible for payment of the difference between the remitted tax and the 25% of gross rent collected during the fiscal year.
The net rental income is calculated based on estimated rental income and anticipated expenses that are considered deductible. You can find a list of the typical expenses in the form below. Please note these are not expenses you incurred last year. It is estimated expenses for the year the NR6 application is meant for.
Can I get a refund on tax paid?
If you were remitting 25% of gross rent, you can get a refund based on actual expenses and income in the fiscal year after you file your taxes.
If you were remitting 25% of net rent as per approved NR6 application, you can still get a refund again based on actual expenses and income upon filing your tax return.