Important reminder about Form NR6, Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real Property or Receiving a Timber Royalty
Canadian agents and their non-resident clients are reminded of the obligations assumed when they filed their Form NR6 for a tax year.
By signing this form, the non-resident agreed to file an income tax return for that year under subsection 216(4) of the Canadian Income Tax Act. The non-resident must file the income tax return even if there is no tax payable on the net rental income for the year.
The non-resident individual has until June 30 of the next year to file the Income Tax Return for Electing Under Section 216. The non-resident corporation and the non-resident trust or estate has until 6 months after the end of the tax year to file the T2 Corporation Income Tax Return and the T3 Trust Income Tax and Information Return, respectively. We will not process subsection 216(4) returns received after the due date.
If the non-resident does not file the return by the due date, we will assess 25% (or the applicable tax-treaty rate) of the gross rental income (less any tax remitted during the year), plus any penalty and interest that apply. As a result, it's important to make sure that the required subsection 216(4) return is filed on or before the due date.
We may not send reminder letters to the non-residents in future years if there is no change in agents or to the agents who filed NR6 undertakings for the same non-residents.
Non-residents can get the returns and guides they need to file the subsection 216(4) return by using the following links:
- Rental Income (T4036)
- Income Tax Guide for Electing Under Section 216 (T4144)
- Income Tax Return for Electing Under Section 216 (T1159)
- T2 Corporation - Income Tax Guide (T4012)
- T2 Corporation Income Tax Return (T2)
- T3 Trust Guide (T4013)
- T3 Trust Income Tax and Information Return (T3 RET)
For more information on the obligations you assumed by filing Form NR6, contact the International Tax and Non-Resident Enquiries line by telephone at:
- 1-855-284-5946 from Canada or the United States; or
- 613-940-8499 from the Ottawa area and outside Canada and the United States. (We accept collect calls.)
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