Are you a non-resident of Canada?
- Please review the CRA website for the requirements for being considered a non- resident of Canada. LINK HERE
- We are not tax consultants; if you have questions pertaining to your status, they should be made to your accountant. (Or you can contact our accountant Homa Pashaye at homa@downtownsuites.com if you wish.)
- The non-resident tax is currently set at 25% of net income which is favorable.
- All non-resident owners are required by the Canadian Government to obtain either a Social Insurance Number (SIN) or an International Tax Number (ITN). Our accounting office will send you the online forms for application or download HERE.
- It takes approximately eight weeks to process an ITN number.
- We cannot pay any funds to a non-resident owner without either of the above.
- The managing agent is responsible for withholding and remitting 25% of the gross rent collected each month unless the managing agent agrees to co-sign an NR6 form. The NR6 form is a statement of projected revenue and expense of the property that enables the Non-Resident to pay taxes on the net rental income which helps their cash flow. Downtown Suites Ltd. does this as a favor, as we assume liability for the Owners’ taxes should they not file.
- Non-residents are required to file income tax on an annual basis. Those who have paid the 25% on gross rent have two years to file their taxes, which results in receiving a refund because they are allowed to report their expenses. Those who have filed NR6 because they only paid tax on their projected net rental income have only 6 months to file their taxes, and in most cases either they have to pay or have a zero balance.
- We require all Owners to provide us with a copy of their tax remittance by May 31 of each year, failure to do so will result in us AUTOMATICALLY filing for the Owner and the fee is $500 + HST for this service.
- We report to CRA the owner’s rental income and withholding tax on an NR4 information return which is due by March 31st. A copy is also sent to the owner or their accountant.
- Our fee for remitting monthly taxes to CRA filing NR4, filing necessary paperwork and liaising with the Canadian Revenue Agency (CRA) is $30 per month.
- All our fees are tax deductible and subject to HST.
- For more information, please review the CRA website.
In this video, Nicholas Meyer outlines information for Non-Resident Owners contemplating a sale of their property.
Please contact us for more information about how Downtown Suites can help you with your property.
Email nic@downtownsuites.com, or phone 604- 694-8801.
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