If you are a Non-Resident of Canada and you have a property for rent, our firm will be able to remit the 25% of withholding tax for you with an annual admin fee of $150 + GST per person on title for NR4 Form, or $300 + GST per person on title for applying NR6 status.

NR4

If you declare yourself as Non-resident in Canada, our firm our firm will be able to remit the 25% of withholding tax from your Gross rental income per month for you as default. In every January, you will receive an annual rental statement and in late February or early March, you will receive a NR4 form from from our accounting department.

In order for us to produce the NR4 form, we need the following:

  1. Your SIN or ITN number
  2. Your foreign address

You will then bring along the Annual rental income statement and your NR4 to your personal income accountant to claim back some taxes from the prepaid tax. Our firm have remit the 25% tax for you based on your Gross rental income, however, you should be paying the 25% tax based on your Net income. You have expenses such as repair, management fees, mortgage interest, property tax and such.

Please bring along those information to your Accountant:

  1. Your annual rental statement (includes all the income and expense occurred during our management)
  2. Your NR4 or NR6 form
  3. Your Property Tax
  4. Your Utility Bill if applicable
  5. Your annual Mortgage statement
  6. Your repair bill
  7. Your Strata fee for the year
  8. Plus all the other income and expense you have occurred during the year

NR6

If you wish to pay a “reduced” withholding tax, then our firm can apply NR6 for you, this needs to be approved by the CRA, the usual deadline for the year is the previous year’s December 31. E.g. For applying to Year 2022, the deadline for applying to NR6 is Dec 31 2021. You can still apply in the mid-year, but CRA decides on when this will take effect.  With NR6 status, you can pay the 25% of the withholding tax based on NET rental income.

In order for us to apply NR6 for you, we need the following:

  1. Your SIN or ITN number
  2. Your foreign address
  3. Your Estimated Net Income including income and any expense during the year

Applying NR6 does not mean there is no withholding tax, it is just “reduced”. If your NET rental income turns out to be $6000 a year, then our brokerage still needs to send $500 to the CRA monthly ($6000 divided by 12 months = $500)

You will then need to file taxes with certain deadline or penalty from the CRA could apply.

Please consult your Personal Income Tax Professional Accountant for Details