Non Resident Section 217

The canada revenue agency allows those people to elect to file a canadian return and report pension as well as other canadian sourced income.

Non resident section 217. If you an non resident choose to file a tax return under section 217 you may pay tax on the eligible income using alternative method and my receive a refund of some or all of the non resident tax. Old age security pension. You have the option of sending a section 217 return for 2019 even if you did not submit form nr5 to the cra if you received any of the following types of canadian source income referred to as eligible section 217 income in 2019 while you were a non resident of canada.

The most common types of income which are subject to non resident withholding tax are. The section 217 tax return is due by june 30 th of the following year. To do so use form nr7 r application for refund of part xiii tax withheld.

Non resident withholding tax section 217 election when a canadian nonresident withdraws money from their pension the government applies a withholding tax at the source. The purpose of section 217 is to avoid placing the non resident recipient of such payments typically a retired individual in a less favourable position than if the recipient were resident in canada and entitled to the usual deductions permitted in determining taxable income and tax credits reducing tax payable under part i of the act. What is a section 217 election.

However section 217 of the income tax act permits non residents of canada to elect to file a canadian tax return if tax savings can be achieved. As such this income is not required to be reported on a canadian income tax return. If you are a non resident of canada canadian payers have to withhold non resident tax from qualifying canadian income paid or credited to you.

This pamphlet is useful to non residents of canada electing to file a canadian income tax return to report qualifying canadian income. The return is filed with the international tax services office. This application is used to determine whether filing a section 217 elective return will be beneficial for you.

However if there is a balance owing it is recommended that you pay and file by april 30 th to avoid interest from accruing. T4145 electing under section 217 of the income tax act 2019. You can view this publication in.