Non-Resident Tax Services
Canadian tax for non-residents and departing residents.
Non-residents of Canada have specific tax obligations for Canadian-source income — and the rules differ significantly from resident taxation. Whether you are a non-resident earning rental income, receiving Canadian pensions, selling Canadian property, or navigating a departure return, we ensure you meet your Canadian tax obligations correctly and avoid costly withholding tax errors.
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What We Offer
Who Is This For?
Why Choose Synergy
Avoid Withholding Tax Penalties
Non-resident rental income is subject to 25% withholding tax unless a Section 216 election is filed. Without proper compliance, CRA can hold the property manager personally liable for withheld amounts. We ensure correct withholding, remittances, and treaty elections from the start.
Section 216 Election Savings
Filing a Section 216 return allows non-residents to pay tax on net rental income (after expenses) rather than gross rental income, often resulting in a significant refund of the 25% tax withheld. We file this return annually and recover excess withholding wherever applicable.
Clearance Certificate Support
Non-residents selling Canadian real estate must obtain a Section 116 clearance certificate from CRA before closing. Without it, the buyer must withhold 25% of the sale price. We prepare and submit the clearance certificate application promptly to avoid delays at closing.
Tax Treaty Benefits Applied
Canada has tax treaties with over 90 countries that reduce or eliminate withholding tax on various income types. We identify applicable treaty rates for your specific situation and ensure the treaty position is properly claimed on your Canadian returns.
Frequently Asked Questions
Do non-residents pay tax on Canadian rental income?
Yes. Non-residents earning rental income from Canadian property are subject to Part XIII withholding tax at 25% of gross rental income. The property manager or tenant is required to withhold and remit this tax to CRA. However, by filing a Section 216 election return, a non-resident can pay tax on net rental income after expenses at regular graduated rates — often resulting in a significant refund of the amount withheld.
What is a Section 116 clearance certificate?
When a non-resident sells taxable Canadian property (including real estate), Section 116 of the Income Tax Act requires the buyer to withhold 25% of the purchase price unless the seller obtains a clearance certificate from CRA before closing. Without a certificate, the buyer is personally liable for the withheld amount. We prepare the clearance certificate application and submit it to CRA — typically 30 days before the expected closing date. Processing times vary, so early application is critical.
I am leaving Canada permanently — do I need to file a departure return?
Yes. In the year you emigrate from Canada, you must file a departure return covering the period from January 1 to your date of departure. You are also deemed to have disposed of most of your assets at their fair market value on your departure date — a 'deemed disposition' that may trigger capital gains. Certain assets (Canadian real estate, business assets, pension plans) are excluded. We calculate your deemed disposition, identify any tax owing, and optimize your final Canadian return.
How are CPP and OAS pensions taxed for non-residents?
CPP and OAS payments to non-residents are subject to 25% Part XIII withholding tax (or a lower treaty rate if applicable). Under the Canada-US treaty, for example, the withholding rate is 15% for periodic pension payments. Non-residents can elect to file a return and pay tax at graduated rates if that produces a lower result. We analyze your specific pension income and country of residence to identify the most favourable approach.
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