647-259-8806
info@turnkeyrentalmanagement.com
14B Harbour St
Toronto, ON, M5J 2Y4
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Non Residents
Are you a non-resident receiving rental income in Canada?
If so, you must adhere to specific tax obligations set by the Canada Revenue Agency (CRA). We’re here to help you navigate these requirements!
Rental income is subject to a 25% monthly tax on the gross rental amount unless you elect to file based on the net rental income.
As a non-resident, you will need a Canadian agent, such as our team, to assist with withholding and remitting the tax as the rent is received.
Once you elect a Canadian agent, you have several options, and we are here to assist you with every step of the process.
Example
Let's assume that the Non-Resident earns a rental income as follows:
$2,500 per month for 12 months in 2024
$24,000 is the projected costs over the 12 months in 2024
| Remit based on Gross Rent | Remit Based on Net Rent | |
|---|---|---|
| Gross Rent | $30,000 | $30,000 |
| Final Expenses | $24,000 | $24,000 |
| Taxable Income | $6,000 | $6,000 |
| 25% Monthly Remittance | $625 | $125 |
- The CRA must approve the NR6 application each year before we can remit taxes based on the net rental amount. Additionally, after filing the NR6 form, you must submit a Section 216 return by June of the following year.
- Filing the NR6 and Section 216 returns offers significant benefits for non-residents earning rental income in Canada. These filings enable Canadian agents to reduce the required withholding amounts and assist non-residents in lowering their monthly tax dues.
- It is important to adhere to all deadlines to avoid penalties, and paying close attention to withholding and filing requirements is essential.
- Regardless of the option you select, we will provide you with an NR4 form and a detailed yearly breakdown of your income and expenses. This information will be necessary for your accountant to file your Canadian taxes.
- If you don’t have an accountant in Canada, don’t worry—we can assist you with that as well.
