Earning an income in a country where you are a non-resident is very common today. If you are a non-resident of Canada who works, owns property, or engages in business activities in Canada, there may be tax responsibilities that apply to you. At NBG Chartered Professional Accountants, we offer non-resident tax services that cater specifically to individuals living outside of Canada. Whether you generate rental income, receive dividends, or are contemplating property transactions, our comprehensive range of services is aimed at maximizing your tax efficiency and ensuring compliance with Canadian tax laws.
We understand the complexities of non-resident taxation and are committed to providing you with the best possible advice and assistance. Our team of experienced professional accountants in Hamilton will work closely with you to provide customized solutions tailored to your specific circumstances. We can provide guidance on filing obligations, assist in calculating Canadian taxes and help identify any potential tax credits or deductions that may be available to you. We can also help ensure that any applicable treaty benefits are taken advantage of for maximum benefit. At NBG, we are dedicated in making sure that your interests are protected and that you are compliant with all applicable Canadian tax laws.
With our expertise at your disposal, you can say goodbye to the stress and confusion of navigating Canadian tax obligations on your own. Our team will handle all the paperwork, ensuring that your tax returns are filed accurately and on time. This leaves you with more time to focus on what truly matters to you.
At NBG, our team of expert tax accountants are highly experienced in navigating the complexities surrounding non-resident tax filing obligations. We offer a comprehensive range of services tailored specifically to the needs of individuals dealing with Canadian non-resident tax obligations. Our services include the following but are not limited to:
If you would like to learn more about how we can help simplify your non-resident tax filings, please contact us today.
To determine when you have tax obligations as a non-resident of Canada, you first need to determine your residency status. The amount of tax you owe will depend on your residency status and the type of income you receive. Some of the common scenarios where you can have a non-resident tax filing obligation are listed below.
If you are a non-resident with Canadian rental properties, you have withholding tax obligations and may require filing a special return under the Canadian Income Tax Act.
If you are a non-resident and you dispose of taxable Canadian property, you have a withholding tax obligation on the capital gain realized on the disposition.
If you are carrying on a business in Canada as a non-resident, you will be required to file a personal or corporate tax return.
As a non-resident of Canada, you are subject to different tax rules than residents. If you are a non-resident of Canada, you are only liable to pay tax on income or gains from Canadian sources. Tax calculated on the income of a non-resident of Canada is known as non-resident tax. The amount of tax you owe as a non-resident of Canada will depend on the type of income you receive. A tax expert can make the assessment for you as to how much you owe in the form of non-resident tax.
As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. In general, non-resident income is subject to Part XIII tax or Part I tax in Canada. If you own a business in Canada or earn employment income in Canada, your income is subject to Part I tax.
Part XIII tax applies to dividends, rental payments, old-age pensions, retirement income payments, and annuity payments as well as other types of investment income. As a rule of thumb, a non-resident is subject to 25% withholding on their Canadian income. , However, if there is a tax treaty between the two countries, the tax rate can be reduced to 15%.
An individual may be considered a non-resident of Canada, for income tax purposes, if they:
Please note that an individual’s residency status is determined by a number of factors, including the length of time they have been in the country, their ties to Canada, and their intention to live in the country permanently.
Part XIII is a non-resident withholding tax charged at a rate of 25% and is deducted from the type of incomes listed below. However, if there is a tax treaty between Canada and your country or region of residence, the terms of the treaty may reduce the rate of non-resident withholding tax. Hence, to ensure that the correct Part XIII tax is deducted at source, it is important to tell Canadian payers from which you receive the following income that you are a non-resident of Canada, and also inform them of your country of residence.
The most common types of income subject to Part XIII are:
If the correct amount of Part XIII tax has been deducted from your income by your Canadian payer, you are not required to submit an annual Canadian income tax return. In that case, the Part XIII tax withheld would be considered your final tax obligation to Canada on that income.