Are you a non-resident earning income in Canada? The Canada Revenue Agency (CRA) has specific tax filing obligations for individuals who don’t reside in Canada but have Canadian-source income. This comprehensive guide outlines what non-residents need to know for the 2025 tax year—from determining residency status to understanding withholding taxes and elective filing options.
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🧭 Who Is Considered a Non-Resident for Tax Purposes?
You are a non-resident of Canada if you:
- Live in another country and do not maintain significant residential ties in Canada
- Stay in Canada for less than 183 days in the calendar year
- Are considered a resident of another country with a tax treaty with Canada
The CRA evaluates your residency status based on significant residential ties like a home, spouse, dependents, and social connections in Canada.
💼 Types of Canadian Income Taxable to Non-Residents
As a non-resident, you are only taxed on your Canadian-source income. Examples include:
- Rental income from Canadian property
- Employment income earned in Canada
- Business income carried on in Canada
- Capital gains from taxable Canadian property (TCP)
- Pensions, RRSP withdrawals, CPP, and OAS
💸 Withholding Tax Obligations
Non-residents typically have Part XIII withholding tax applied to income such as:
- Dividends
- Rental payments
- Pension income
- RRSP and RRIF withdrawals
The default withholding tax rate is 25%, but it may be reduced under a tax treaty between Canada and your country of residence.
📝 When Must Non-Residents File a Tax Return?
You must file a Canadian income tax return if:
- You earned employment or business income in Canada
- You elected under Section 216 or 217 of the Income Tax Act
- You disposed of taxable Canadian property and owe capital gains tax
Elective Filings:
- Section 216: For reporting rental income with the option to pay tax on net income instead of gross
- Section 217: For receiving Canadian pensions or OAS and requesting a refund if your effective tax rate is lower than withholding
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📅 Key Dates for 2025
- April 30, 2026: Standard filing deadline for most non-residents with employment income
- June 15, 2026: If you are self-employed or electing under Section 216
- December 31, 2026: Final date for filing Section 217 returns for 2025 income
📂 Required Forms
- T1 General – Income Tax and Benefit Return
- NR4 – Statement of Amounts Paid to Non-Residents
- Schedule A – Statement of World Income
- Form NR6 – Undertaking to File a Section 216 Return (if applicable)
📊 Common Deductions for Non-Residents
- Property tax and maintenance on Canadian rental income (Section 216)
- RRSP contributions if earned eligible income
- Moving expenses (if you returned to work in Canada)
📌 Tips for Filing Successfully
- Maintain records of Canadian-source income
- Verify your residency status annually
- Apply for a CRA Individual Tax Number (ITN) if you don’t have a SIN
- Use CRA-certified software or hire a tax advisor familiar with non-resident filings
✅ Final Thoughts
Filing taxes as a non-resident in Canada may seem complex, but with proper knowledge of CRA requirements and the right documentation, you can remain compliant and possibly even get a refund. Whether you’re earning rental income, pensions, or doing business in Canada, understanding your obligations will save you money and reduce audit risks.
Disclaimer: This blog is intended for informational purposes only and does not constitute legal or tax advice. Always consult a qualified tax professional for advice tailored to your unique situation.
