2023 Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada – New for 2023 and Before you file your return

New for 2023

This section generally includes proposed, announced and enacted tax changes for the year. When tax changes become law as proposed or announced, they will be effective for the tax year or as of the dates given. If new legislation is introduced, information will be available at Personal income tax: What's new for 2023.

New items are flagged with New throughout this guide.

The CRA's services

Electronic remittances or payments above $10,000

As of January 1, 2024, remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically. For more information, go to Payments to the CRA.

Individuals and families

Advanced Canada workers benefit (ACWB) 

Advance payments of the Canada workers benefit (CWB) are now issued automatically under the ACWB to those who received the benefit in the previous tax year. As a result, Form RC201, Canada Workers Benefit Advance Payments Application, has been discontinued.

Starting in 2023, amounts from your RC210 slip are to be reported on Schedule 6, Canada Workers Benefit, in order to calculate the amount to enter on line 41500 of your return. If you have an eligible spouse, you can choose who will claim the basic amount for the CWB regardless of who received the RC210 slip for the basic amount. For more information about the ACWB, go to Canada Workers Benefit.

Deduction for tools (tradespersons and apprentice mechanics)

Starting in 2023, the maximum employment deduction for tradespersons’ eligible tools has increased from $500 to $1,000. As a result, the threshold for expenses eligible for the apprentice mechanics tools deduction has also changed. For more information about tools deductions for tradespersons and apprentice mechanics, go to line 22900 or see Guide T4044, Employment Expenses.

Federal, provincial and territorial COVID-19 benefit repayments

Federal, provincial and territorial COVID-19 benefit repayments made after December 31, 2022 can be claimed as a deduction on line 23200 of your 2023 return.

First home savings account (FHSA)

The FHSA is a new registered plan to help individuals save for their first home. Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax-free. If you opened one or more FHSAs in 2023, complete Schedule 15, FHSA Contributions, Transfers and Activities. For more information about the FHSA, go to First Home Saving Account.

Multigenerational home renovation tax credit (MHRTC)

The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make. For more information and to make a claim, see Schedule 12, Multigenerational Home Renovation Tax Credit.

Property flipping

Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events. For more information about flipped property and life-event exceptions, go to Residential Property Flipping Rule or see Schedule 3, Capital Gains (or Losses).

Before you file

This guide provides you with the basic information you need to complete your 2023 Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada. Use the information in this tax package, along with your information slips, receipts and supporting documents, to complete your return.

Note

Even if you did not have any income in the year, you still have to file a return to get the benefits, credits and refund you may be entitled to.

Find out if this guide is for you

Use this guide if any of the following applies to you:

  • You were a deemed resident of Canada on December 31, 2023 (for exceptions, see Which tax package is for you)
  • You were a non-resident of Canada throughout 2023 reporting Canadian-source income other than income from employment in Canada, from a business with a permanent establishment in Canada, from rental income from real or immovable property located in Canada or from timber royalties on a timber resource property or a timber limit in Canada. (for more information, see Guide T4058, Non-Residents and Income Tax)
  • You were a non-resident of Canada throughout 2023 and are filing a return to elect under section 217 or section 216.1

Note

For definitions of deemed resident of Canada and non-resident of Canada, see Determining your residency status

If these conditions do not apply to you, see Which tax package is for you

Who has to file a return

File a 2023 return if:

Note

If you have a spouse or common-law partner, they also have to file a return.
For more information, see Booklet T4114, Canada Child Benefit and related federal, provincial, and territorial programs, and Guide RC4210, GST/HST Credit, and RC4215 Canada Carbon Rebate.

Deceased persons

If you are the legal representative (executor, administrator or liquidator) for the estate of a person who died in 2023, you may have to file a 2023 return for that person.

Send the legal document that names you as the legal representative, such as a complete copy of the will, grant of probate or letters of administration, to the CRA.

If there is no legal document naming a legal representative, you may request to be the  representative by completing Form RC552, Register as Representative for a Deceased Person.

Send the document to the CRA online using Represent a Client or by mail to the tax centre of the person who died.

For more information, see Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to Do Following a Death (includes “Request for the Canada Revenue Agency to Update Records”).

Determining your residency status

Residential ties

To determine an individual's residency status, all of the relevant facts in each case must be considered, including residential ties with Canada and the length of time, purpose, intent and continuity of the stay while living inside and outside Canada.

Significant residential ties to Canada include:

  • a home in Canada
  • a spouse or common-law partner in Canada
  • dependants in Canada

Secondary residential ties that may be relevant include:

  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • a Canadian passport
  • health insurance with a Canadian province or territory 

Note

You are a factual resident of Canada for tax purposes if you keep significant residential ties in Canada while living or travelling outside the country.

For more information, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.

Non-residents of Canada

You are a non-resident of Canada for tax purposes throughout any period that you normally live in another country, do not have significant residential ties in Canada and are not a deemed resident of Canada.

Income you should report

Report your income from Canadian sources such as the taxable part of your scholarships, fellowships, bursaries, net research grants, income from employment in Canada or a business that does not have a permanent establishment in Canada, net partnership income (limited or non-active partners only), and taxable capital gains from disposing of taxable Canadian property, as shown under the income lines applicable to non-residents of Canada in the guide.

Other types of income are not reported but must be entered on Schedule A, Statement of World Income. For more information, see Schedule A or contact the CRA.

If you were a non-resident of Canada in 2023 wanting to elect under section 217

Under section 217 of the Income Tax Act, you can choose to file a Canadian return and report certain types of Canadian-source income. You are then electing under section 217 of the Income Tax Act. By doing this, you may pay tax on this income using an alternative method and may receive a refund of some or all of the non-resident tax withheld.

If you were a non-resident of Canada in 2023 wanting to elect under section 216.1

Under section 216.1 of the Income Tax Act, if you are a non-resident actor, you can choose to report amounts paid, credited or provided as a benefit to you for film and video acting services rendered in Canada on a Canadian return and pay tax on that income using an alternative taxing method. Choosing to do this is called "Electing under section 216.1."

Deemed non-residents of Canada

You were a deemed non-resident of Canada in 2023 if you would have been considered a resident of Canada (or a deemed resident of Canada) but, under a tax treaty between Canada and another country, you were considered a resident of the other country.

You become a deemed non-resident of Canada when your ties with the other country are such that, under the tax treaty, you would be considered a resident of that other country and not of Canada. In this case, the same rules that apply to non-residents of Canada will apply to you as a deemed non-resident (including the way you complete your return).

Deemed residents of Canada

You were a deemed resident of Canada for tax purposes if you did not have significant residential ties in Canada, but you stayed in Canada for 183 days or more in 2023 and, under a tax treaty between Canada and another country, you were not considered a resident of another country.

Additionally, you may be considered a deemed resident of Quebec if you stayed in the province of Quebec during that period. For more information, contact Revenu Québec.

You were also a deemed resident of Canada if you lived outside Canada during 2023, you were not considered a factual resident of Canada because you did not have significant residential ties in Canada, and you were one of the following:

  • a member of the Canadian Forces overseas school staff and you choose to file a return as a deemed resident of Canada (if you left Canada during 2023, see If you were a member of the overseas Canadian Forces school staff who left Canada in 2023)
  • a federal or provincial government employee and you were either a resident of Canada just before being posted abroad or you received a representation allowance for 2023
  • a person working under a Global Affairs Canada assistance program if you were a resident of Canada at any time during the three-month period just before you began your duties abroad
  • a member of the Canadian Forces at any time in 2023
  • a person who, under a tax treaty, agreement, or convention between Canada and another country, is exempt from tax in that other country on 90% or more of your income from all sources because of your relationship to a resident (including a deemed resident) of Canada
  • a dependent child of one of the first four persons described earlier in this section and your net world income in 2023 was not more than the basic personal amount in Canadian dollars
Income you should report

Report your 2023 world income. World income is income from all sources both inside and outside Canada.

If you were a member of the overseas Canadian Forces school staff who left Canada in 2023

If you were a member of the overseas Canadian Forces school staff who left Canada in 2023 and severed residential ties, you became a non-resident of Canada. Use the 2023 income tax package for the province or territory where you lived just before you left Canada. Go to Individuals – Leaving or entering Canada and non-residents for the special rules that apply to you. However, you can choose to file as a deemed resident of Canada while you are serving abroad. If so, use the 2023 income tax package for the province or territory where you lived just before you left Canada. In future years, you will use the Income Tax Package for Non-Residents and Deemed Residents of Canada.

If you lived in Quebec just before you left Canada

In addition to being considered a deemed resident of Canada, under Quebec law, you may also be considered a deemed resident of the province of Quebec. If so, you may have to pay Quebec income tax while you are serving abroad.

For example, if you are a deemed resident of Canada and were, at any time in the year, an agent-general, an officer, or a servant of the province of Quebec and you were a resident of that province just before your appointment or employment with that province, you must pay Quebec income tax.

Deemed residents of Quebec

To avoid double taxation (surtax for non-residents and deemed residents of Canada plus Quebec income tax), attach a note to your federal return stating the following:

  • You are subject to Quebec income tax
  • You are filing a Revenu Québec Income Tax Return
  • You are asking for relief from the non-resident and deemed resident surtax

For more information, contact the CRA.

The province of Quebec also grants relief to certain taxpayers who were deemed residents of Canada and Quebec. This includes deemed residents of Canada who are members of the Canadian Forces or, at any time in the year, an ambassador, minister, high commissioner, officer or servant of Canada, and who were also deemed residents of Quebec. For more information, contact Revenu Québec.

Which tax package is for you

Generally, you should use the Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada, Federal Worksheet for Non-Residents and Deemed Residents of Canada and schedules included in this tax package. However, if any of the following situations apply to you, use the income tax package specified:
  • If you were a deemed resident of Canada on December 31, 2023, reporting only income from a business with a permanent establishment in a province or territory of Canada, use the income tax package for that province or territory
  • If you were a deemed resident of Canada who returned to live in Canada in 2023, use the income tax package for the province or territory where you lived on December 31, 2023
  • If you were a non-resident of Canada throughout 2023 reporting only income from employment in Canada or from a business or partnership with a permanent establishment in Canada, use the income tax package for the province or territory where you earned the income (also see Guide T4058, Non-Residents and Income Tax, for the special rules that apply)

Note

If you were a non-resident reporting other types of Canadian-source income such as taxable scholarships, fellowships, bursaries, research grants, or capital gains from disposing of taxable Canadian property, you also need to complete Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, to calculate your provincial and territorial taxes.

  • If you were a non-resident of Canada throughout 2023 reporting rental income from real or immovable property in Canada or timber royalties on a timber resource property or a timber limit in Canada, see Guide T4144, Income Tax Guide for Electing under Section 216
  • If you resided outside Canada on December 31, 2023, but kept significant residential ties with Canada, you may be a factual resident of Canada. Use the tax package for the province or territory where you kept your residential ties

Note

If you were a factual resident who is considered to be a resident of another country under a tax treaty, see Deemed non-residents of Canada.

Due dates

Your 2023 return and payment are due on or before the date below that applies to you:

  • For most people, the return is due April 30, 2024, and payment is due April 30, 2024
  • For a self-employed person and their spouse or common-law partner with business expenditures that relate mostly to a tax shelter investment, the return is due April 30, 2024, and payment is due April 30, 2024
  • For a self-employed person and their spouse or common-law partner (other than those stated above), the return is due June 15, 2024, and payment is due April 30, 2024
  • For a deceased person and their surviving spouse or common-law partner, see Guide T4011, Preparing Returns for Deceased Persons

Exception

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day. Your payment is considered on time if it is received on the first business day after the due date.

For more information, go to Due dates and payment dates

Penalties and interest

Penalties

The CRA may charge you a penalty if any of the following applies:

  • You filed your return late and you owe tax for 2023
  • You failed to report an amount on your 2023 return and you also failed to report an amount on your return for 2020, 2021 or 2022
  • You knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission on your 2023 return
Non-residents electing under section 217

If you file your 2023 section 217 return after June 30, 2024, your election will not be valid. For more information, see Section 217 return due date.

Non-residents electing under section 216.1

If you file your section 216.1 return after the due date, your election will not be valid. For more information, see Section 216.1 return due date.

Interest on your balance owing

If you have a balance owing for 2023, the CRA will charge compound daily interest starting May 1, 2024, on any unpaid amount owing for 2023. This includes any balance owing if the CRA reassesses your return.

Interest on your refund

The CRA will pay you compound daily interest on your tax refund for 2023 in some situations. The calculation will start on the latest of the following three dates:

  • May 30, 2024
  • the 30th day after you file your return
  • the day you overpaid your taxes

Cancel or waive penalties and interest

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA the discretion to cancel or waive penalties or interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA's discretion to grant relief is limited to any period that ends within 10 calendar years before the year in which a relief request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later.

Taxpayer relief requests can be made online using the CRA's My Account, My Business Account or Represent a Client digital services.

You can also fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, and send it to the CRA online using My Account, My Business Account (MyBA) or Represent a Client, or by mail to the designated office shown on the last page of Form RC4288.

For information about how to submit documents online, go to Submit documents online. For details about the required supporting documents, relief from penalties and interest and other related forms and publications, go to Cancel or waive penalties or interest.

How to send your return to the CRA

Use the address provided in the Contact the CRA section to mail your return to your tax centre.

If you prepare your return or other people’s returns, mail each person’s return in a separate envelope. However, if you file returns for more than one year for the same person, put them all in one envelope.

If you provide services in the film and television industry and are electing to file a Canadian tax return under section 216.1, send your return to the Film Services Unit that serves the province or territory where the services were provided. You can find the addresses of the offices at Film and media tax credits.

Get help doing your taxes

The following services may help you to complete your tax return based on your personal tax situation.

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA's automated service, TIPS, by calling 1-800-267-6999 from Canada and the United States.

Individual enquiries by phone

The telephone numbers to reach the CRA are provided at the end of this guide and at Contact the CRA.

If you work in the film or video production industry and you need more information, go to Film and media tax credits for telephone numbers, fax numbers, and addresses for the film services units.

Teletypewriter (TTY) users

If you use a TTY for hearing or speech impairment, call 1-800-665-0354Monday to Friday (except holidays), 8 am to 8 pm (local time), and on Saturdays (except holidays) from 9 am to 5 pm (local time). 

If you use an operator-assisted relay service, call the CRA's regular telephone numbers instead of the TTY number.

Gather your documents

Gather all of the information slips, receipts and supporting documents that you need to report your income and claim any deductions, credits or expenses.

Missing slips or receipts

File your return on time even if you do not have all of your slips or receipts. You are responsible for reporting your income from all sources to avoid any penalties and interest that could be charged.

If you have not received your slips by early April or if you have any questions about an amount on a slip, contact the payer.

If you know you won't be able to get a missing information slip by the due date, use your final pay stub or statement to estimate your income and any related deductions, credits, and expenses you can claim. Enter the estimated amounts on the appropriate lines of your return.

Electing under section 217 

As a non-resident of Canada, Canadian payers have to withhold non-resident tax on certain types of Canadian-source income they pay or credit to you. The tax withheld is usually your final tax obligation to Canada on this income and you do not have to file a Canadian tax return to report it. However, you can choose to file a Canadian return to report certain types of Canadian-source income listed in the next section by "electing under section 217 of the Income Tax Act." In doing so, you may pay tax on this income using a different method and may receive a refund of all or part of the non-resident tax withheld.

If you filed Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld, for the year, and the CRA approved it, you generally have to file a section 217 return by June 30 of the year following each year of the period covered by the approved Form NR5. For more information, see Guide T4145, Electing under Section 217 of the Income Tax Act.

Note

When approved by the CRA, Form NR5 is valid for a period of five tax years.

Eligible section 217 income

You have the option of filing a section 217 return for 2023, even if you did not send 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 2023 while you were a
non-resident of Canada:

  • old age security (OAS) pension
  • Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits
  • most superannuation and pension benefits
  • most registered retirement savings plan (RRSP) payments
  • most pooled registered pension plan (PRPP) payments
  • most registered retirement income fund (RRIF) payments
  • death benefits
  • employment insurance (EI) benefits
  • certain retiring allowances
  • registered supplementary unemployment benefit plan payments
  • most deferred profit sharing plan (DPSP) payments
  • amounts received from a retirement compensation arrangement or the purchase price of an interest in a retirement compensation arrangement
  • prescribed benefits under a government assistance program
  • Auto Pact benefits

Note

Interest and other investment income, rental income and workers' compensation benefits are not eligible section 217 income and are not to be reported on this return, but must be included in your world income when you complete Schedule A, Statement of World Income.

Section 217 return due date

Your 2023 section 217 return must be filed on or before June 30, 2024.

Note

If you have a balance owing for 2023, you must pay it on or before April 30, 2024. If you owe tax for 2023 and do not file your return for 2023 within the dates specified, the CRA will charge you a late-filing penalty. The CRA will also charge compound daily interest starting May 1, 2024, on any unpaid amounts owing for 2023.

If you file your 2023 return after June 30, 2024, the CRA cannot accept your section 217 election according to the Income Tax Act. If you file late and the required amount of non-resident tax was withheld on your eligible section 217 income, the CRA will consider the amount withheld to be your final tax obligation to Canada on that income. However, if the payer withheld less than the required amount of tax, the CRA will send you a notice of assessment for the difference.

If, in addition to the eligible section 217 income, you are reporting:

  • other Canadian-source income, such as a taxable capital gain from disposing of taxable Canadian property, or if you have to pay tax on employment income you are reporting, you must file your return on or before April 30, 2024 (for more information, see Due dates).
  • business income and you have to pay tax on that income, you must file the return on or before June 15, 2024

Completing your section 217 return

Before you start, gather all of the documents you need to complete your return, including your information slips (such as your NR4 slips), receipts for any deductions or credits you want to claim, and the following forms found in this tax package:

To complete your return, follow these instructions:

1 – At the top of page 1 of your return, write "Section 217"

2 – Complete the "Identification and other information" section of your return using the instructions.

3 – Report the following income on your return:

  • all eligible section 217 income paid or credited to you in 2023
  • your 2023 Canadian-source employment and business income, net Canadian partnership income if you are a limited or non-active partner, and any taxable capital gains from disposing of taxable Canadian property, if applicable

Note

To determine the types of income you must report on this return if you are a non-resident making an election under section 217, follow the symbols in Step 2 – Total income.

4 – Complete Part 1 of Schedule C, Electing under Section 217 of the Income Tax Act

5 – Claim only the deductions on lines 20700 to 25600 of your return that apply to you

6 – Complete Schedule A, Statement of World Income

7 – Complete Step 5 of your return to calculate your federal tax as follows:

  • Claim the federal non-refundable tax credits on lines 30000 to 34900 of your return that apply to you
  • When calculating your federal tax, enter whichever amount is more on line 70 of your return:
    • your taxable income from line 26000 of your return
    • your net world income from line 14 of Schedule A
  • Complete Schedule B, Allowable Amount of Federal Non-Refundable Tax Credits, and enter the result on line 126 of your return
  • Calculate and enter the amount of surtax for non-residents of Canada and deemed residents of Canada on line 131 of your return
  • Complete Part 2 of Schedule C to calculate the section 217 tax adjustment (line 142 of your return) if the amount you entered on line 70 of your return is the same as the amount entered on line 16 of your Schedule A

8 – Complete lines 42000 to 43500 of your return, if they apply to you

9 – On line 43700 of your return, enter the non-resident tax withheld on your eligible section 217 income (from your NR4 slips) as well as any other amounts withheld as shown on your information slips for any other Canadian-source income you are reporting on your return

10 - Complete the rest of your return

Notes

Attach your information slips and all completed schedules to your return. If you file your return without attaching your schedules and supporting documents, the processing of your return may be delayed.

If you file your section 217 return on time, the CRA will refund any tax withheld that is more than the amount you owe. For more information, see Guide T4145, Electing under Section 217 of the Income Tax Act.

Electing under section 216.1 

If you are a non-resident actor, a non-resident withholding tax of 23% applies to amounts paid, credited, or provided as a benefit to you for film and video acting services rendered in Canada. Generally, the non-resident withholding tax is considered your final tax obligation to Canada on that income. However, you can choose to report this income on a Canadian income tax return for 2023 by "electing under section 216.1 of the Income Tax Act." In doing so, you may receive a refund of all or part of the non-resident tax withheld on this income.

Section 216.1 return due date

Generally, if you choose to file a return under section 216.1, your 2023 return must be filed on or before April 30, 2024.

If you are a self-employed individual, your 2023 return must be filed on or before June 15, 2024. However, if you have a balance owing for 2023, you still have to pay it on or before April 30, 2024. For more information, see Due dates.

Completing your section 216.1 return

At the top of page 1 of your return, write " Section 216.1 (actor's election)".

Send your return to the Non-resident services section of your tax services office. For more information, see Film and media tax credits.

If you file your return after the due date, your election is not valid. The 23% non-resident withholding tax will be considered the final tax obligation to Canada on that income.

Note

This election does not apply to other persons employed or providing services within the movie industry, such as directors, producers, and other personnel working behind the scenes. It also does not apply to persons in other sectors of the entertainment industry, such as musical performers, ice or air show performers, stage actors or stage performers, or international speakers.

Reducing tax withheld at source

If you intend to elect under section 216.1, you can apply for a reduction to the required amount of non-resident tax withheld on amounts paid, credited or provided as a benefit to you for film and video acting services rendered in Canada. You must apply before you provide the acting services in Canada.

To apply, file Form T1287, Application by a Non-Resident of Canada (Individual) for a Reduction in the Amount of Non-Resident Tax Required to be Withheld on Income Earned From Acting in a Film or Video Production, or Form T1288, Application by a Non-Resident of Canada (Corporation) for a Reduction in the Amount of Non-Resident Tax Required to be Withheld on Income Earned From Acting in a Film or Video Production.

For more information, see Film and media tax credits.

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