Form NR5 - 5-year Administrative Policy
Effective January 2011, only one Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld, will have to be filed for every five tax years, if approved.
When an NR5 application is approved:
- It will always cover a period of five tax years.
- We will advise each relevant Canadian payer of the reduced rate of non-resident tax to deduct from the qualifying Canadian income for the entire approval period.
- The reduced rate of tax withholding will be maintained throughout the entire approval period, unless we have been informed of changes to the information provided on your most recently approved NR5 application (for more information, see How to amend your NR5 application).
- You are not required to file an amended Form NR5 to inform us of yearly increases to your pension payments due to a cost of living increase (indexing), because these changes are taken into account during the initial processing of your application.
- You will have to file an income tax return under section 217 of the Income Tax Act (the Act) within six months from the end of each tax year covered by the approval period.
Tracy files her Form NR5 in October 2011.
If approved, it will be valid for the 2012, 2013, 2014, 2015, and 2016 tax years.
Tracy will also not have to file another NR5 until October 2016, which, if approved, will cover the 2017 to 2021 tax years.
Additionally, she will have to file an income tax return under section 217 of the Act within six months from the end of each tax year covered by the five-year approval period.
How to amend your NR5 application
If, during the five-year approval period, there is a change in the amount of income you receive, you can send us an amended NR5 application. A new withholding rate may be determined based on the information provided on any amended NR5 application received. We will inform you and each relevant Canadian payer of any revisions to the withholding rate.
You are not required to file an amended Form NR5 to inform us of yearly increases to your pension payments due to a cost of living increase (indexing), because these changes are taken into account during the initial processing of your application.
If you send an amended NR5 application in the first year of the five-year approval period and it's approved, there will be no change to the five-year approval period. If, however, you send an amended NR5 application in any other year covered by the five-year approval period and it is approved, this will be considered a new application. A new five-year approval period will begin.
How to cancel your NR5 application
You may contact us at any time to request that your NR5 application be cancelled. However, you will still be required to file your section 217 income tax return for the approved period covered before the cancellation.
Where to send requests
Requests to amend and cancel NR5 applications should be sent to the following address:
Form NR5 Processing
International Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
Forms and publications
- Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld
- T4145 - Electing Under Section 217 of the Income Tax Act
- T4061 - NR4 - Non-Resident Tax Withholding, Remitting and Reporting
- 5013-G - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada
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