Very informative and excellent explanation . I could complete the documents as you were explaining . Thanks for step by step guide with lot of patience and clarity
this very helpful, can you please explain what we should do at the end of year, how we can file the tax for this income, i have asked some accountant and they do not know
You should find an accountant that knows how to do this as they will need to file your taxes at the end of the year and this will be a part of that process. You can find more information at this website www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/rental-income-non-resident-tax/filing-reporting-requirements.html
Amazing Video as previously mentioned!! You should also do a video on T1159 Income Tax Return for Electing Under Section 216 the following year too, as well as NR4. That would be amazing!!
I appreciate that you've found this video helpful. I haven't personally filled out an NR4 before so I'm not to familiar with this. I'm sure there is a video somewhere on UA-cam that could help you with this.
Phenomenal explanation!! For having more than two properties, do you just attach an extra paper showing the total? I am using my brother as my agent, does he have to fill an NR4 form ?
Yes in my example I did 2 properties as well so you can follow my video. Yes you can use your brother or wife as your agent. Yes your brother needs to get the non resident tax number then file the NR6 then file the NR4’s.
Very helpful video Tim. Thank you. I'll be grateful if you can answer this question: Is it compulsory for a non-resident to file taxes if they only have a rental income for which the withholding tax has been paid?
I'm not 100% clear on your question. As a non-resident you MUST pay taxes on your rental property no matter what. You can choose to pay 25% of the GROSS in which I don't think you need an agent or 25% of the NET where you need to follow the process in this video. I hope that answers your question.
once again thank you for this life saver. One question about the "period end" filed in the payment. Shouldn't that be the end of the year we are paying the tax for? For example if paying for the whole year today May 24th 2024, what should be period end, Dec 2024?
@@hamash2289 I think you may be able to do this but you should call CRA to confirm. I've made over payments in the past and they did use the overpayment towards the payments for the year. You can call them at 1-855-284-5946
I just spoke to CRA and you can pay the entire year at once. Once you make this payment you'll need to do one more step. A few days after you make the payment you need to call CRA and tell the agent that you've paid for the whole year and they will adjust this on their end.
Hey Tim , very insightful, thank you , a question, can the non resident as an ages for himself without having to assign an agent ? If yes what will be subsequence for the other format flow need to be filled ?
I submitted my NR6 late on Jan 11, 2024 and it wasn't approved until Mar 12, 2024 so about 2 months. Ideally you should submit this before the end of the year. The CRA suggests submitting it in October so that it get's process right away in January. They do it in order of which it is received.
@@realestategame Wish I looked into this earlier. I'll be closing next week. Do you know what the right process/steps to take while you're waiting for the NR6 to get approved? Thank you so much for your response and the video. Tremendous help!!
@@EmJel-wd1fo You can search me online and contact me directly. I will discuss this over the phone with you as it's a longer conversation that will take too much time explaining through text.
Thanks for the amazing tutorial. I truly appreciate the flow from start to finish as it was easy to follow and absorb. I just have one question about the non-resident tax account, I noticed that you can open an account as a "Non-resident payee" while in your example you created an account with owner role "Withholding agent". Under what cases should a "Non-resident payee" account be created?
That's a good question. I've never really thought about this before and I'm not a tax accountant so take my opinions with a grain of salt. If this is important to you I'd call CRA to find out directly. I would assume that you'd select the "Non-resident payee" if you were the actual non-resident who wanted to create a Non-resident tax account. I would assume you'd have created this for other tax scenarios out of my scope of expertise. Perhaps to directly pay the full 25% of the GROSS taxes payable rather than having a withholding agent who has the option of paying only 25% of the NET taxes payable with the approval of the NR6.
I'm not sure of what factors specifically because I've never heard of anyone being rejected before. It's a pretty straight forward application so I don't see why you would be rejected. It doesn't matter really because at the end of the year when you file your taxes it will all be reconciled and any taxes owed or refunds will be calculated at that time. You can call CRA directly to see if they can give you scenarios where it could be rejected.
Yes you are correct you can file them online. I just released a new video that shows you how to do this. ua-cam.com/video/Me3xQ7L8lhM/v-deo.htmlsi=qDA3Knq46yAzb6K4
Thank you for your detailed explanations step-by-step. Just have one question right now, who should send out my NR6 form and expense statement to CRA for me? My property manager or my accountant or myself? Thanks.
You're welcome. You can have anyone do this for you. Some property managers will offer this service so you will need to check with your property manager to see if they do. It might be at an extra charge. Your accountant can also do this again it might be an extra charge. You can also do this yourself free of charge.
You're welcome I'm glad I can help. I'm not sure what your question is. If the agent follows this video exactly they will be able to do the non-resident filing for you. Can you be more specific on what exactly you would like to know?
@realestategame Thank you for reaponding 🙏 I am going to ask a family member to be my agent so I wanna prepare the NR4 for them as well during tax season. Maybe I missed it in the video but didn't see any NR4 forms.
@@hamash2289 Ok that's perfect. They need to apply for the Non Resident Tax Number on your behalf and then file. They should follow the steps in the video NOT you. You just need to watch the Making a Payment chapter to file your NR4. I'm doing a digital filing and not using the form.
@@hamash2289first the deadline is dependant on the nature of the income (rental, interest, dividend) etc, the NR4 is what was paid to the non resident and it would have the amount separated from the withholding tax. A copy needs to be distributed as per guidelines Then there is the impact of any bilateral tax treaty or convention which takes precedence over the income tax act such that the rate of withholding may be reduced. Depending on the nature of the income you can elect section 216 and claim expenses and net difference between what was remitted and actual expenditure. All the best
Thanks a lot for this video. This will save me so much headache, as I am becoming a non-resindent in April. QQ though: 1. So this process needs to be done by my withholding agent, who will actually be my realtor in this case. The banking details entered in first section is the account of the agent or non resident or does it matter? Can I just open a new bank account and use that with my agent to collect rent and pay the withholding tax? 2. Also, at the end of the year when I am filing my taxes as a non-resident, this is all done by me in my own CRA account right? My agent does not need to do anything at that point? 3. Also, do initiate this process, I need to have all the properties rented already right? Asking as I will be renting my current house starting April, so I am guessing I cant start this process right now. Thanks a lot again.
1. Yes your Realtor will have to create an account as a withholding agent. If you see the my payment section you can see that anyone can make a payment for this account. You just need to have the account number. When I used to do this for my clients I usually had my clients pay me in advance and then I paid the account right after. However, you can do it whatever way you choose. 2. Yes you have to file your own taxes your agent will have nothing to do with that. Your agent has to file the NR6 for next year so that you only have to remit 25% of the net profits. 3. You must start this process as soon as you became a non-resident. If you're late to file you should contact your accountant to see how you can take care of the previous taxes. You should do this sooner than later. I wouldn't leave it longer than it should because you might have to pay penalties and interest. I hope this helps answer some of your questions.
@@realestategame Thanks a lot for the reply. 1. So my agent can just pay the withholding tax from his account, all he needs is the NR agent number? He is basically just a proxy in this case that CRA can go after if I dont pay. Can he submit the application to get this number before I become a non-resident or does it have to be after? 2. So NR6 needs to be files every year by my agent? 3. When you say I should start this process sooner, I am not sure if I can start this before I have officially become a non resident. Lets assume I know I am gonna leave Canada on April 1st. In this case, when can my agent apply to be a NR agent for me? Also, can he submit the NR6 immidietly after or does he need to wait for the NR agent confirmation letter in the mail before he can fill and submit NR6?
@@somneonfs 1. Yes that is correct. The CRA will go after him as you're not in the country anymore. I believe he can apply before. As you saw from the video it gives you a number right away. 2. Yes the NR6 has to be renewed every single year. Best time to do it is in Dec or Jan. Before tax season as they get busy at the CRA. 3. If you're leaving on April 1st I would get it started early so that when you leave you already have your NR6 approved so you're not paying 25% of the gross. He can only submit the 25% of net once he gets the NR6 approved.
@@realestategame I see. I think for NR6 I will need to wait till I know what price my primary residence will be rented for unfortunately. Can't fill it before that :(
Thank you so much for this!!! If we do have the mortgage statement (incl interest and principle breakdown), can we put the most recent month's interest payment?
I'm not quite understanding your question but if I were to rephrase it are you asking if you could use your last months interest payment to calculate it for the year? The short answer is you can put down whatever numbers you want to get the approval. You'll have to report your final numbers on your tax filing at the end of the year. Therefore the numbers will be adjusted accordingly. So yes you can just put the last months interest payment and then multiply it by 12 so you get the year then use this number to reduce your rental income so you can get the approval to pay only the 25% of net rent. Then at the end of the year you adjust it with the real numbers when you get your final mortgage statement with the actual interest numbers. I hope that answers your question.
If you are a non-resident you can file your taxes by yourself. However, you'll have to pay 25% of the Gross Rents every month and then get it back at the end of the year by filing a section 216. If you want to pay 25% of Net Rents you must designate an agent to do this. I believe that the tax man does this to have a resident of Canada to go after in case you don't pay your taxes. If you don't pay the agent is 100% responsible.
HI, I have a question. I am a non resident and paying my 25% withholding tax on gross rental income by myself (I have opened a non resident tax account as non resident payee). Can I file 216 next year to get refund? Do I still need a NR4 for filling 216? If yes, who will generate a NR4. I do not have with holding agent working on our behalf.
Since you’re managing the 25% withholding tax yourself, you can file a Section 216 return next year to be taxed on net rental income, which could lead to a refund or lower taxes. You’ll still need an NR4 slip to report your gross income and withholding taxes. In your case, since you don’t have a withholding agent, you’re responsible for generating the NR4 slip and submitting it to the CRA. I will be making an NR4 video soon as well because I will be doing this at the end of the year as an agent for someone I know. So stay tuned for this. If you want to create it sooner you can just contact CRA directly. If you need assistance with the process, you can always contact the CRA directly at 1-800-959-8281 (within Canada) or 1-613-940-8495 (outside of Canada). They can help guide you through the requirements.
Very good video. Thank you. Few questions 1) Can the non resident just keep paying the tax directly instead of the agent (to avoid hassle on the agent) 2) If the NR6 takes a while to get approved, so you keep paying 25% tax. However once the NR6 form is approved, can you eventually claim the expenses for the prior month during the end of year tax form 3) Maybe similar to Q2 above, what happens if we never fill the NR6 form. I understand we pay 25% tax but can we claim all expenses (property tax/insruance etc) at the year of the year final tax submission
Thank you! Great questions: 1) No, the CRA requires a withholding agent to remit the 25% withholding tax, not the non-resident themselves. It believe this is to ensure that the taxes get paid and to have someone local liable for the taxes. 2) Yes, once your NR6 is approved, you can retroactively apply the reduced tax rate (based on net rental income) and claim expenses from earlier in the year when you were still paying the full 25%. If you've overpaid you can apply that payment for the period so you're over paying for the remainder of the year. You can do this with a simple phone call into CRA to advise them to do this. I paid 25% of net on a property and it was more than 1 years worth after the NR6 approved. So I didn't have to pay for the remainder of the year. 3) Without filing an NR6, you’ll pay 25% on gross income, but you can still claim all eligible expenses at the end of the year when filing your Section 216 tax return. Hope this helps!
Thanks for a great video! I tried to submit the form on the CRA website but every time it says the service is not available and I cannot submit. Does anyone know why?
This unfortunately is an ongoing problem with the CRA website. Try using a different computer or a different IP address and hopefully you're able to submit. I think it's just the incompetence of the CRA.
If the properly is owned by husband/wife (both non-residents) then should the withholding agent submit two NR6? Also, would the withholding agent have one NR account and list both of them as two separate owners? Finally, the rental income and expenses would be 50-50 for both husband and wife individual filing?
I just spoke to CRA and you have to file 2 NR6's and another 2 NR4's for the year. However, you'll only pay into your 1 account so you wouldn't need to make 2 payments just one. At the end of the year when the husband/wife claims their taxes the accountant will take care of the rest.
Thank you for the video, it is very informative! I see now that you can actually submit NR6 online through CRA My account. I have a question, regarding submission. For example, the non-resident landlord designated a family member to be the agent, and the agent followed the steps in the video to open a non-resident tax account. After completing the NR6 form, does the agent or the landlord submit the NR6 form online?
Yes that is correct. Once you have your NR Number you can submit this form online. I'm actually in the process of releasing an updated video just explaining the NR6 video so it should hopefully be up this week or next week.
@@Chenbonbon Yes that is correct. Either the Non-Resident Property Owner or the Agent of the Non-Resident can submit it on the MyCRA account. Personally I've ONLY done it as an agent on behalf of the Non-Resident but I recall having a conversation about this with the CRA agent and he said either of us can submit the NR6. If you want to double check you can call the CRA Non Resident department directly at 1-855-284-5946. You will get correspondence through mail once they receive your NR6 request. It won't be processed until the New Year.
@@realestategame Thank you so much! Another question about the section 4 agent section, the agent just needs to fill in the NRV account, or does he need the CRA identifier number (SIN etc.) as well? I see from the video that you skipped that box but the form was still able to get approved.
@@Chenbonbon Yes I was able to get it done without putting in the SIN number but if you want you can put this in so the CRA can verify that it is the correct account. They can still find you from the NRV account but if you want you can fill in the SIN as well. I'll be releasing a NR6 video on Saturday so you can see what I do there if you want. On that video I put in the SIN number.
Yes it is compulsory to appoint an agent. If you don't pay then the Agent is responsible for the taxes. I think this is the way the government protects themselves by holding someone living in the country accountable for the taxes. If you don't have anyone to do this for you there are management companies that do charge you a fee to do this on your behalf.
Very informative and excellent explanation . I could complete the documents as you were explaining . Thanks for step by step guide with lot of patience and clarity
You're welcome I'm glad you found it useful. This is quite the process so I'm glad you were able to follow along.
wow very patient and step by step detailed explanation. Thanks. Very helpful!
You're welcome I'm glad you found it helpful.
Amazing tutorial Tim, Thank you so much for the walk through. Incredibly valuable.
You're welcome I'm glad I could help.
this very helpful, can you please explain what we should do at the end of year, how we can file the tax for this income, i have asked some accountant and they do not know
You should find an accountant that knows how to do this as they will need to file your taxes at the end of the year and this will be a part of that process. You can find more information at this website www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/rental-income-non-resident-tax/filing-reporting-requirements.html
@@realestategame thank you 🙏🏻
This is a great intro, very helpful, thank you!!
You're welcome. I'm glad I was able to help.
👍
Amazing Video as previously mentioned!! You should also do a video on T1159 Income Tax Return for Electing Under Section 216 the following year too, as well as NR4. That would be amazing!!
Fantastic Video. Thank you for demystifying this for us!
Our pleasure!
Wow super helpful. Your are the man! Do you have a video or an example on how to fill out an NR4? Thanks!!!!
I appreciate that you've found this video helpful. I haven't personally filled out an NR4 before so I'm not to familiar with this. I'm sure there is a video somewhere on UA-cam that could help you with this.
Phenomenal explanation!! For having more than two properties, do you just attach an extra paper showing the total?
I am using my brother as my agent, does he have to fill an NR4 form ?
Yes in my example I did 2 properties as well so you can follow my video. Yes you can use your brother or wife as your agent. Yes your brother needs to get the non resident tax number then file the NR6 then file the NR4’s.
Thanks so much for the tutorial!
Just a question, do you need to file the 216 every single year?
Sorry I meant the NR6 form* do you need to file that for every single year?
You're welcome!
Yes you do have to file this every year. Sorry I will be making a video for an NR4 as well next month. You also need to do this every year.
@@realestategame Is the NR4 only when you have to withhold taxes? If there is a net loss, then do you still need to do NR4?
Thank you so much. It was vey helpful!
Glad it was helpful!
Very helpful video Tim. Thank you. I'll be grateful if you can answer this question: Is it compulsory for a non-resident to file taxes if they only have a rental income for which the withholding tax has been paid?
I'm not 100% clear on your question. As a non-resident you MUST pay taxes on your rental property no matter what. You can choose to pay 25% of the GROSS in which I don't think you need an agent or 25% of the NET where you need to follow the process in this video. I hope that answers your question.
once again thank you for this life saver. One question about the "period end" filed in the payment. Shouldn't that be the end of the year we are paying the tax for? For example if paying for the whole year today May 24th 2024, what should be period end, Dec 2024?
You have to pay the tax every single month unless you have a nil remittance balance. Does that answer your question?
@realestategame thanks, my question is can I pay for the remainder of the year at once?
@@hamash2289 I think you may be able to do this but you should call CRA to confirm. I've made over payments in the past and they did use the overpayment towards the payments for the year. You can call them at 1-855-284-5946
I just spoke to CRA and you can pay the entire year at once. Once you make this payment you'll need to do one more step. A few days after you make the payment you need to call CRA and tell the agent that you've paid for the whole year and they will adjust this on their end.
Hey Tim , very insightful, thank you , a question, can the non resident as an ages for himself without having to assign an agent ? If yes what will be subsequence for the other format flow need to be filled ?
No you must designate a Canadian Resident as an agent.
Such a helpful video! Thank you!!! How long did it take you to get the NR6 approved?
I submitted my NR6 late on Jan 11, 2024 and it wasn't approved until Mar 12, 2024 so about 2 months. Ideally you should submit this before the end of the year. The CRA suggests submitting it in October so that it get's process right away in January. They do it in order of which it is received.
@@realestategame Wish I looked into this earlier. I'll be closing next week. Do you know what the right process/steps to take while you're waiting for the NR6 to get approved? Thank you so much for your response and the video. Tremendous help!!
@@EmJel-wd1fo You can search me online and contact me directly. I will discuss this over the phone with you as it's a longer conversation that will take too much time explaining through text.
Very detailed, exactly what I was looking for thankyou
You're welcome, I'm glad you found it helpful.
Thanks for the amazing tutorial. I truly appreciate the flow from start to finish as it was easy to follow and absorb. I just have one question about the non-resident tax account, I noticed that you can open an account as a "Non-resident payee" while in your example you created an account with owner role "Withholding agent". Under what cases should a "Non-resident payee" account be created?
That's a good question. I've never really thought about this before and I'm not a tax accountant so take my opinions with a grain of salt. If this is important to you I'd call CRA to find out directly. I would assume that you'd select the "Non-resident payee" if you were the actual non-resident who wanted to create a Non-resident tax account. I would assume you'd have created this for other tax scenarios out of my scope of expertise. Perhaps to directly pay the full 25% of the GROSS taxes payable rather than having a withholding agent who has the option of paying only 25% of the NET taxes payable with the approval of the NR6.
I just spoke to CRA and you can actually pay WHT on gross rent using this account and it is not compulsory to have an agent. This is the option I use
@@AbcAbc-ii8zm thanks, this is what I’m doing currently as well.
Great tutorial.
Thanks.
Is very helpfully for me !!! Thanks !!!
I'm glad you were able to find the video helpful.
Do a video on NR4 as well please. I know you have not done it yourself before.
I will be making one for the NR4 in the near future. If you haven't filed it yet you're late.
On what factors it depends if NR6 will be approved or not. What are the factors that could result in acceptance or rejection? Excellent information!!
I'm not sure of what factors specifically because I've never heard of anyone being rejected before. It's a pretty straight forward application so I don't see why you would be rejected. It doesn't matter really because at the end of the year when you file your taxes it will all be reconciled and any taxes owed or refunds will be calculated at that time. You can call CRA directly to see if they can give you scenarios where it could be rejected.
most helpful
Thank you for watching.
I’m glad it helped.
This is very helpful Tim. I believe the NR6 can be filed online now.
Yes you are correct you can file them online. I just released a new video that shows you how to do this. ua-cam.com/video/Me3xQ7L8lhM/v-deo.htmlsi=qDA3Knq46yAzb6K4
Thank you for your detailed explanations step-by-step. Just have one question right now, who should send out my NR6 form and expense statement to CRA for me? My property manager or my accountant or myself? Thanks.
You're welcome. You can have anyone do this for you. Some property managers will offer this service so you will need to check with your property manager to see if they do. It might be at an extra charge. Your accountant can also do this again it might be an extra charge. You can also do this yourself free of charge.
Very very helpful 👏
Can you also explain how the NR4 filing should be done by the agent?
You're welcome I'm glad I can help. I'm not sure what your question is. If the agent follows this video exactly they will be able to do the non-resident filing for you. Can you be more specific on what exactly you would like to know?
@realestategame Thank you for reaponding 🙏 I am going to ask a family member to be my agent so I wanna prepare the NR4 for them as well during tax season. Maybe I missed it in the video but didn't see any NR4 forms.
@@hamash2289 Ok that's perfect. They need to apply for the Non Resident Tax Number on your behalf and then file. They should follow the steps in the video NOT you. You just need to watch the Making a Payment chapter to file your NR4. I'm doing a digital filing and not using the form.
@@hamash2289first the deadline is dependant on the nature of the income (rental, interest, dividend) etc, the NR4 is what was paid to the non resident and it would have the amount separated from the withholding tax. A copy needs to be distributed as per guidelines Then there is the impact of any bilateral tax treaty or convention which takes precedence over the income tax act such that the rate of withholding may be reduced. Depending on the nature of the income you can elect section 216 and claim expenses and net difference between what was remitted and actual expenditure. All the best
Thanks a lot for this video. This will save me so much headache, as I am becoming a non-resindent in April.
QQ though:
1. So this process needs to be done by my withholding agent, who will actually be my realtor in this case. The banking details entered in first section is the account of the agent or non resident or does it matter? Can I just open a new bank account and use that with my agent to collect rent and pay the withholding tax?
2. Also, at the end of the year when I am filing my taxes as a non-resident, this is all done by me in my own CRA account right? My agent does not need to do anything at that point?
3. Also, do initiate this process, I need to have all the properties rented already right? Asking as I will be renting my current house starting April, so I am guessing I cant start this process right now.
Thanks a lot again.
1. Yes your Realtor will have to create an account as a withholding agent. If you see the my payment section you can see that anyone can make a payment for this account. You just need to have the account number. When I used to do this for my clients I usually had my clients pay me in advance and then I paid the account right after. However, you can do it whatever way you choose.
2. Yes you have to file your own taxes your agent will have nothing to do with that. Your agent has to file the NR6 for next year so that you only have to remit 25% of the net profits.
3. You must start this process as soon as you became a non-resident. If you're late to file you should contact your accountant to see how you can take care of the previous taxes. You should do this sooner than later. I wouldn't leave it longer than it should because you might have to pay penalties and interest.
I hope this helps answer some of your questions.
@@realestategame
Thanks a lot for the reply.
1. So my agent can just pay the withholding tax from his account, all he needs is the NR agent number? He is basically just a proxy in this case that CRA can go after if I dont pay.
Can he submit the application to get this number before I become a non-resident or does it have to be after?
2. So NR6 needs to be files every year by my agent?
3. When you say I should start this process sooner, I am not sure if I can start this before I have officially become a non resident.
Lets assume I know I am gonna leave Canada on April 1st. In this case, when can my agent apply to be a NR agent for me? Also, can he submit the NR6 immidietly after or does he need to wait for the NR agent confirmation letter in the mail before he can fill and submit NR6?
@@somneonfs 1. Yes that is correct. The CRA will go after him as you're not in the country anymore. I believe he can apply before. As you saw from the video it gives you a number right away.
2. Yes the NR6 has to be renewed every single year. Best time to do it is in Dec or Jan. Before tax season as they get busy at the CRA.
3. If you're leaving on April 1st I would get it started early so that when you leave you already have your NR6 approved so you're not paying 25% of the gross. He can only submit the 25% of net once he gets the NR6 approved.
@@realestategame
I see. I think for NR6 I will need to wait till I know what price my primary residence will be rented for unfortunately. Can't fill it before that :(
@@somneonfs yes that is true you'll need to know the rent price to do the worksheet.
Thank you so much for this!!! If we do have the mortgage statement (incl interest and principle breakdown), can we put the most recent month's interest payment?
I'm not quite understanding your question but if I were to rephrase it are you asking if you could use your last months interest payment to calculate it for the year? The short answer is you can put down whatever numbers you want to get the approval. You'll have to report your final numbers on your tax filing at the end of the year. Therefore the numbers will be adjusted accordingly. So yes you can just put the last months interest payment and then multiply it by 12 so you get the year then use this number to reduce your rental income so you can get the approval to pay only the 25% of net rent. Then at the end of the year you adjust it with the real numbers when you get your final mortgage statement with the actual interest numbers. I hope that answers your question.
Is that possible to file the NR4 ourself ?
If you are a non-resident you can file your taxes by yourself. However, you'll have to pay 25% of the Gross Rents every month and then get it back at the end of the year by filing a section 216. If you want to pay 25% of Net Rents you must designate an agent to do this. I believe that the tax man does this to have a resident of Canada to go after in case you don't pay your taxes. If you don't pay the agent is 100% responsible.
HI, I have a question. I am a non resident and paying my 25% withholding tax on gross rental income by myself (I have opened a non resident tax account as non resident payee). Can I file 216 next year to get refund? Do I still need a NR4 for filling 216? If yes, who will generate a NR4. I do not have with holding agent working on our behalf.
Since you’re managing the 25% withholding tax yourself, you can file a Section 216 return next year to be taxed on net rental income, which could lead to a refund or lower taxes. You’ll still need an NR4 slip to report your gross income and withholding taxes. In your case, since you don’t have a withholding agent, you’re responsible for generating the NR4 slip and submitting it to the CRA.
I will be making an NR4 video soon as well because I will be doing this at the end of the year as an agent for someone I know. So stay tuned for this. If you want to create it sooner you can just contact CRA directly.
If you need assistance with the process, you can always contact the CRA directly at 1-800-959-8281 (within Canada) or 1-613-940-8495 (outside of Canada). They can help guide you through the requirements.
Very good video. Thank you. Few questions
1) Can the non resident just keep paying the tax directly instead of the agent (to avoid hassle on the agent)
2) If the NR6 takes a while to get approved, so you keep paying 25% tax. However once the NR6 form is approved, can you eventually claim the expenses for the prior month during the end of year tax form
3) Maybe similar to Q2 above, what happens if we never fill the NR6 form. I understand we pay 25% tax but can we claim all expenses (property tax/insruance etc) at the year of the year final tax submission
Thank you! Great questions:
1) No, the CRA requires a withholding agent to remit the 25% withholding tax, not the non-resident themselves. It believe this is to ensure that the taxes get paid and to have someone local liable for the taxes.
2) Yes, once your NR6 is approved, you can retroactively apply the reduced tax rate (based on net rental income) and claim expenses from earlier in the year when you were still paying the full 25%. If you've overpaid you can apply that payment for the period so you're over paying for the remainder of the year. You can do this with a simple phone call into CRA to advise them to do this. I paid 25% of net on a property and it was more than 1 years worth after the NR6 approved. So I didn't have to pay for the remainder of the year.
3) Without filing an NR6, you’ll pay 25% on gross income, but you can still claim all eligible expenses at the end of the year when filing your Section 216 tax return.
Hope this helps!
Thanks for a great video! I tried to submit the form on the CRA website but every time it says the service is not available and I cannot submit. Does anyone know why?
This unfortunately is an ongoing problem with the CRA website. Try using a different computer or a different IP address and hopefully you're able to submit. I think it's just the incompetence of the CRA.
@@realestategame I tried again with a different account and it worked. Thanks again!
@@Yukizhong That's great I hope CRA fixes whatever issues they are having as I get this all the time.
If the properly is owned by husband/wife (both non-residents) then should the withholding agent submit two NR6? Also, would the withholding agent have one NR account and list both of them as two separate owners? Finally, the rental income and expenses would be 50-50 for both husband and wife individual filing?
This is a good question. I can find out the answer to your question by calling CRA tomorrow morning and letting you know.
I just spoke to CRA and you have to file 2 NR6's and another 2 NR4's for the year. However, you'll only pay into your 1 account so you wouldn't need to make 2 payments just one. At the end of the year when the husband/wife claims their taxes the accountant will take care of the rest.
@@realestategame Thank you!
Very good and informative video. Can you share the excel sheet so we can reuse it
Appreciate the feedback. I've added the link to the spreadsheet in description of the video. Let me know if you have any other questions.
Thank you for the video, it is very informative!
I see now that you can actually submit NR6 online through CRA My account.
I have a question, regarding submission. For example, the non-resident landlord designated a family member to be the agent, and the agent followed the steps in the video to open a non-resident tax account. After completing the NR6 form, does the agent or the landlord submit the NR6 form online?
Yes that is correct. Once you have your NR Number you can submit this form online. I'm actually in the process of releasing an updated video just explaining the NR6 video so it should hopefully be up this week or next week.
@ So it doesn’t matter if the landlord submit NR6 form in her own CRA account or the agent submit in the agent’s CRA account?
@@Chenbonbon Yes that is correct. Either the Non-Resident Property Owner or the Agent of the Non-Resident can submit it on the MyCRA account. Personally I've ONLY done it as an agent on behalf of the Non-Resident but I recall having a conversation about this with the CRA agent and he said either of us can submit the NR6. If you want to double check you can call the CRA Non Resident department directly at 1-855-284-5946. You will get correspondence through mail once they receive your NR6 request. It won't be processed until the New Year.
@@realestategame Thank you so much! Another question about the section 4 agent section, the agent just needs to fill in the NRV account, or does he need the CRA identifier number (SIN etc.) as well? I see from the video that you skipped that box but the form was still able to get approved.
@@Chenbonbon Yes I was able to get it done without putting in the SIN number but if you want you can put this in so the CRA can verify that it is the correct account. They can still find you from the NRV account but if you want you can fill in the SIN as well. I'll be releasing a NR6 video on Saturday so you can see what I do there if you want. On that video I put in the SIN number.
Is it compulsory to appoint an agent or a non residentbcan himself do all these things and no need to appoint agent
Yes it is compulsory to appoint an agent. If you don't pay then the Agent is responsible for the taxes. I think this is the way the government protects themselves by holding someone living in the country accountable for the taxes. If you don't have anyone to do this for you there are management companies that do charge you a fee to do this on your behalf.