If you owe tax on non-resident TFSA contributions
Any contribution you make to your Tax-free Savings Account (TFSA) when you are a non-resident of Canada is taxable.
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How non-resident contributions are taxed
If you contribute to your TFSA when you are a non-resident of Canada, withdraw the amount as soon as possible. Non-resident contributions are taxed in Canada at a rate of 1% per month for as long as the contribution remains in the account.
This tax continues to apply until one of the following happens, whichever comes first:
Withdraw the amount
The month you withdraw the entire non-resident contribution from your TFSA
Regain residency
The month you become a resident of Canada again
Withdrawing only part of the non-resident contribution does not reduce your tax owing, you must remove all of it.
If you also over-contribute
The tax on non-resident contributions can be combined with the tax on excess amounts. If your non-resident contribution also exceeds your available TFSA contribution room, the CRA can impose two separate 1% monthly taxes on your TFSA.
For more information:
How to report non-resident contributions
Submit your TFSA Return, any additional forms, and your payment to the CRA by June 30 of the calendar year after the year the tax applies. For example, if you owe tax on your TFSA in 2024, you must file by June 30, 2025.
Depending on the payment option you choose, you may submit your forms separately from your payment.
Remove the non-resident contribution
Before you pay, withdraw the entire non-resident contribution (if you have not already)
Complete the required TFSA forms
Send your TFSA forms to the CRA
Submit your forms using one of the following methods:
Online: Option 1
Use “Submit documents” in your CRA account to submit your forms online
By mail: Option 2
Mail your forms to one of the following:
Sudbury Tax Centre
TFSA Processing Unit
Canada Revenue Agency
Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON P3A 5C1Winnipeg Tax Centre
TFSA Processing Unit
Canada Revenue Agency
Winnipeg Tax Centre
Post Office Box 14000, Station Main
Winnipeg MB R3C 3M2If you send your forms by mail, you may include your payment.
Choose a payment method and submit the amount owing
To view TFSA payment methods, go to Payment options and provide the following answers:
- What type of payment are you making? Other benefit, tax, fee or amount owing
- Should you make the payment to the CRA? Yes
- Are you making the payment on behalf of: An individual
- What type of payment (or repayment) is being made? TFSA
You can access your filed TFSA forms online in your CRA account.