Foreign, Foreign Income, Foreign Investments, Non-Residents

Non-Resident – Section 217 & 216.1 Explained

Understanding your residency status is critical for the purpose of filing your tax return with the Canada Revenue Agency. This link will explain it best!

Electing under Section 217 – Certain Canadian Sourced Income

If you want to pay taxes the same way Canadians do then file under Section 217 to report certain types of Canadian sourced income, such as OAS, CPP &QPP benefits, superannuation pension benefits, RRSP, PRPP, death benefits, EI etc. Review this link from the CRA for a complete list of income types you may have received.

How to apply

5013-SC Schedule C – Electing Under Section 217 of the Income Tax Act (for non-residents of Canada)

NR5Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld.

Non-residents who receive Canadian sourced pensions or other benefits who want to reduce their taxable income rate, can use the NR5 form. You are required to file one NR5 form every 5 years. Review this link for more detailed information.

Due date:

Section 217 returns must be filed with the CRA on or before June 30th. Ensure you send it on time, as this election will not be accepted afterwards. Your taxes withheld will become your final tax obligations to Canada. If more was withheld than the required amount of taxes, you will be sent a Notice of Assessment from the CRA for the difference. This link from the CRA will provide you with more information.

Electing under Section 216.1 – Actors ONLY

NR Actors will report any income or credited amounts that were given to you for film and video acting services issued in Canada for which you have paid taxes on.

Note: This election does not apply to anyone else within the movie industry, this is a strict “Actor’s” election for film or video services. For more detailed information, review this link from the CRA.

How to Apply

Complete Form T1287 Application by a Non-Resident of Canada (Individual) for a Reduction in the Amount of Non-Resident Tax Required to be Withheld on Income Earned From Acting in a Film or Video Production or

Form T1288 Application by a Non-Resident of Canada (Corporation) for a Reduction in the Amount of Non-Resident Tax Required to be Withheld on Income Earned From Acting in a Film or Video Production

Due Date:

You must file your Section 216.1 on or before April 30th. If, you are SE then you have until June 15th, but your balance owing is due on April 30th. CRA notes that if you elect to file under this section, write in caps at the top of your return “ACTOR’S ELECTION”. The same rules apply, if you miss the due date, your return will not be validated. The 23% of your taxes withheld will be considered your final tax obligations to the CRA.

For more information on electing under Section 216.1, review this link from the CRA.

This link will provide you with more detailed information on filing your non-resident tax return using TurboTax.

How do I send my non-resident tax return to the CRA?

As a non-resident you will not be able to NETFILE your tax return, you will have to print and mail or fax it to the CRA. Take note that faxing is a temporary measure that they have implemented due to the long international mail delays. Furthermore, If you are filing more than one person’s tax return, ensure that you send each person’s tax return separately. However, if you are filing more than one year for that specific person, you can put them all in one envelope.

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