Tax forms for Canadian non-residents
7. Form NR4 – Statement of Amounts paid or credited to a Non-Resident of Canada
Tax Guides for Canadian non-residents
4. Income Tax Guide for Electing Under Section 216 – 2009 – When you receive rental income from real property in Canada, the payer, such as the tenant or a property manager, has to withhold non resident tax at the rate of 25% on the gross rental income paid or credited to you. The payer has to send us the tax on or before the 15th day of the month following the month the rental income is paid or credited to you.
Generally, the non-resident tax withheld is considered your final tax obligation to Canada on the rental income. However, if you elect under section 216 of the Income Tax Act, as explained in the next section, you may pay less tax. Also, you may receive a refund for some or all of the non resident tax withheld.
Note you may also want to consider having non-resident tax withheld on the net rental income instead of the gross amount. For more information, see “Withholding on net rental income (Form NR6)”.