Non-Resident Tax

Whether you are a non-resident for tax purposes depends on your ties to Canada — not your citizenship or immigration status.

How we help

• Residency analysis based on residential ties, days in Canada and tax treaties
• Deemed residents and individuals with ties to more than one country
• Arrival and departure returns when your status changes

Rent paid to a non-resident is subject to Canadian withholding tax. Filing the right forms lets you pay tax on net income instead.

How we help

• Part XIII withholding of 25% on gross rent, remitted by your tenant or property manager
• NR6 undertaking to withhold on net rental income instead of gross rent
• Annual section 216 returns to report net income and recover over-withheld tax
• NR4 slips and agent obligations

Without a clearance certificate, the purchaser must hold back 25% of the sale price (50% for depreciable property).

How we help

• Section 116 clearance certificate applications (T2062 / T2062A) within 10 days of the sale
• Calculating the gain, recapture and the tax payable to obtain the certificate
• Final Canadian return for the year of sale to recover any excess holdback
• Coordinating with real estate lawyers on closing

Ontario's Non-Resident Speculation Tax and land transfer tax can sometimes be rebated or refunded.

How we help

• Eligibility review for Non-Resident Speculation Tax (NRST) rebates
• Applications and supporting documents for rebates and refunds
• First-time home buyer land transfer tax refunds

The Underused Housing Tax has been eliminated from 2025, but returns for 2022 to 2024 are still required. In our experience, CRA is now likely to review UHT filings when a property is sold, and late-filing penalties are significant. If you have not filed, we recommend coming forward through the Voluntary Disclosures Program (VDP).

How we help

• Determining whether you had to file for 2022–2024 and which exemptions apply
• Late UHT returns for 2022–2024
• Voluntary Disclosures Program (VDP) applications for penalty and interest relief
• Responding to CRA UHT reviews when a property is sold