Ruby Tax files Canadian tax returns for non-residents, including Section 216 returns on Canadian rental income, Section 116 clearance certificates when Canadian property is sold, and departure returns for people leaving Canada. All of it is handled remotely from our North York office.
If you left Canada but still own property here, or you are a non-resident earning Canadian income, you have filing obligations that are easy to miss and expensive to miss for long. This is specialist work and we do it regularly for clients living abroad.
What we handle
- Section 216 returns for Canadian rental income
- NR4 slips and non-resident withholding
- Section 116 clearance certificates on property sales
- Departure returns and deemed disposition
- Residency determination
- Treaty-based positions
What it costs
Quoted per file. Non-resident work varies a great deal depending on how many properties are involved, how many years are outstanding and whether a clearance certificate is needed. You get a fixed price before we begin.
Rental income and the 25% withholding
Rent paid to a non-resident is subject to 25% withholding on the gross amount. Filing a Section 216 return lets you be taxed on net rental income instead, after expenses, which is almost always a lower number. The election has deadlines attached to it. If you have been withholding without filing, or not withholding at all, talk to us about where you stand before it compounds further.
Selling Canadian property
A non-resident selling Canadian real estate needs a Section 116 clearance certificate, and the buyer withholds a portion of the sale price until it is issued. Starting this early matters. It holds up closings when it is left to the last minute, and the funds stay locked up until CRA processes it.
Ask about your situation
We work with clients in different time zones and everything can be handled remotely. Call 647-990-7258 or email raj@rubytax.ca and we will come back within one business day.
Common questions about non-resident returns
Do I have to file a Canadian tax return if I live abroad and rent out a Canadian property?
Rental income paid to a non-resident is subject to Canadian withholding tax on the gross rent. You can instead elect under Section 216 to file a Canadian return and be taxed on the net rental income after expenses, which is usually far less. The election has filing deadlines, so it is worth getting advice before the year closes.
What is a Section 116 clearance certificate?
When a non-resident sells taxable Canadian property, CRA must be notified and a clearance certificate obtained. Without it the purchaser is required to withhold and remit a portion of the sale price, so the certificate is what releases the funds. It is a process with its own deadlines and is best started before closing.
What is a departure return?
A departure return is the return you file for the year you cease to be a Canadian resident. It sets your date of departure, reports a deemed disposition of certain property, and closes out your Canadian residency for tax purposes. Getting it right matters, because it determines what Canada can tax afterwards.
Can you prepare my return if I am outside Canada?
Yes. Non-resident work is remote by nature. Documents are exchanged electronically and we file for clients living outside Canada as a matter of course.
Related services
Also see personal tax returns and corporate tax returns.