"The hardest thing in the world to understand is the income tax."
Author: Brad Howland
First Posted: Jan. 2, 2009
Canadian nonresidents who own Canadian rental property: everything needed to prepare for your Section 216 tax return is available to download on Canada Revenue Agency's website.
A General Overview of Requirements
Instructions on Completing the NR4 Return and Slips
The NR4 Return for 2008 should be filed by the rental/property manager with CRA by March 31, 2009.
The NR4 Slip should be provided to you by the rental/property manager by March 31, 2009.
Use Form NR6 to request approval from CRA to remit 25% of net income as tax in 2009, rather than 25% of gross income. It's due by Jan. 31 for 2009 rental income and withholdings.
Your 2008 Section 216 Canadian return is due two years after the end of the tax year if you didn't file Form NR6 for 2008 (and paid 25% tax on gross income), or six months after the end of the tax year if you did file Form NR6 for 2008 (and paid tax on net income).
Withholding tax payments to CRA are due on or before the 15th of the month for the previous month.
This information is provided without warranty of any kind. All readers wishing to take advantage of the information offered here should consult a qualified income tax preparer. In no event will Brad Howland, Howland Tax Services, or this website be liable for any damages, including lost profits, arising out of the information offered on this website.