Are you a Non-Resident who receives Rental Income from a Canadian Property? This guide will help you understand the confusing process to Section 216 filings with CRA.
Canada is encountering inflated real estate prices in many large metropolitan centers due to the influx of Non-Residents purchasing residential units. The Revenue Service has been combating the lack of remitted taxes by cracking down and requiring Section 216 returns be filed, Canadian Agents being retained to receive the rent collected and remit monthly of 25% of the rent received in taxes to CRA. Cloudkeepers has teamed up with Agents in Toronto and Ottawa to offer a one stop shop for Agent appointment, Non-Resident Account Number, NR6 approval, Rent Collection, Property Management, Section VIII remittances, NR4 generation and Section 216 filings for all Non-residents. Yes, it all sounds confusing and a lot of red tape for the small amount of actual income generated from these properties, but with our help, we can save you on taxes and time - as well as a whole basket of issues with CRA.
Let's take the confusion away from being a landlord out of country and explain what all these things mean.
Non-Resident of Canada - You could be Canadian or not. What it means is that you simply don't reside in Canada. If you own property here and receive rent on that property, you have a hefty tax burden unless you make the right decisions.
Agent -A resident of Canada who receives the rental payments for you and remits the required Section VIII taxes to CRA. You must have an agent to file an NR6. The Agent takes on the same responsibilities as you do when it comes to taxes payable.
Find below our free downloadable Non-Resident rental guide, for all your Non-Resident and tax filing needs!