Wednesday, 6 March 2013

Rent of Canadian Real Estate by a Non-resident

If you are a non-resident of Canada and own real estate in Canada which is rented then you must file a Canadian Section 216 tax return.  The non-resident must file its returns within two years in order to claim refund of withholding tax. A tenant paying rent to a non-resident is required to withhold 25% of the  gross rent and pay it to Canada Revenue Agency(CRA).  If a form NR6 has been filed with CRA and has been approved the withholding tax is levied on the net amount of rent (gross amount less expenses).  In this latter case Section 216 tax return should be filed within six months.   Also, in the event of the non-resident wishing to sell the property all outstanding returns should be filed.

for more information on taxes when a non-residents sells Canadian real estate.

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1 comment:

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