Non-residents who earn income in Canada may have tax obligations, depending on the type of income, tax treaties, and withholding tax requirements. Whether you are a foreign business investing in Canada, a non-resident earning rental income, selling Canadian property, or receiving Canadian-source income, understanding your tax liabilities is crucial to avoid penalties and maximize tax savings.
At Lepore & Company, we provide expert tax services for non-residents, ensuring compliance with Canadian tax laws while minimizing unnecessary tax burdens.
Who is Considered a Non-Resident for Tax Purposes?
You are generally considered a non-resident of Canada for tax purposes if:
- You live outside Canada and do not maintain significant residential ties.
- You stay in Canada for less than 183 days in a tax year.
- You are a foreign business operating in Canada without a permanent establishment.
As a non-resident, your Canadian tax obligations depend on the type of income you earn and any applicable tax treaties between Canada and your home country.
Our Non-Resident Tax Services
1. Withholding Tax Compliance & Refunds
Most non-resident income earned in Canada is subject to withholding tax, typically at 25%, unless reduced by a tax treaty. We help:
- 📌 Determine the correct withholding tax rate based on tax treaties.
- 📌 Assist with tax exemption applications where applicable.
- 📌 Claim refunds for overpaid withholding tax.
We ensure you pay only what is required and recover any excess taxes paid.
2. Non-Resident Rental Income Tax Filing (NR4, NR6, Section 216)
If you own and rent out property in Canada, you have specific tax obligations. We assist with:
- Filing NR4 and NR6 forms to manage withholding tax obligations.
- Electing under Section 216 to file a tax return and reduce taxes on rental income.
- Maximizing deductions on property expenses to lower taxable income.
Proper tax planning ensures you comply with CRA regulations while optimizing rental income taxation.
3. Selling Canadian Property (Non-Resident Disposition – Section 116 Tax Compliance)
If you sell real estate or other taxable Canadian property as a non-resident, you must:
- 📌 Notify the CRA within 10 days of the sale to obtain a Clearance Certificate.
- 📌 Pay withholding tax, typically 25% to 50% of the gross sale price.
- 📌 File a Section 116 tax return to claim a refund if you overpaid taxes.
We handle all CRA reporting requirements, ensuring a smooth and tax-efficient property sale.
4. Non-Resident Business Tax & Permanent Establishment (PE) Considerations
If you are a foreign business operating in Canada, we help with:
- Determining whether your business has a Permanent Establishment (PE) under tax treaties.
- Registering for a Canadian Business Number (BN) and GST/HST accounts.
- Filing corporate tax returns for Canadian-source business income.
With proper structuring, we ensure your business stays compliant while minimizing Canadian tax exposure.
5. Non-Resident Employment & Investment Income Taxation
Non-residents earning employment, pension, dividends, or capital gains from Canada may have different tax rules. We assist with:
- 📌 Filing non-resident tax returns for employment or investment income.
- 📌 Applying for tax treaty benefits to reduce withholding tax.
- 📌 Maximizing foreign tax credits to avoid double taxation.
We ensure your Canadian-source income is taxed efficiently and in compliance with CRA regulations.
Why Choose Lepore & Company for Non-Resident Tax Services?
- ✅ Expert Guidance on Canadian Non-Resident Tax Laws – Ensuring full compliance with CRA requirements.
- ✅ Withholding Tax Reduction & Refund Claims – Helping you recover overpaid taxes.
- ✅ Specialized Tax Planning for Real Estate, Business & Investment Income – Tailored tax solutions for non-residents.
- ✅ Cross-Border Tax Optimization – Leveraging tax treaties for maximum tax efficiency.
- ✅ Hassle-Free CRA Filings & Representation – Managing all tax filings and CRA communications on your behalf.
Need Assistance with Your Non-Resident Tax Obligations?
At Lepore & Company, we specialize in non-resident tax planning, compliance, and advisory services, ensuring you meet all Canadian tax requirements while optimizing your tax position. Whether you are an investor, property owner, business, or individual earning income from Canada, we provide expert solutions tailored to your needs.
Contact us today for expert non-resident tax advisory services!