Electing under section 217

Canadian payers must withhold non-resident tax on certain types of Canadian-source income that they pay or credit to non-residents of Canada.

What is a section 217 election?

If you are a non-resident, the tax withheld is usually your final tax obligation to Canada on this income. However, you can choose to file a Canadian return to report certain types of Canadian-source income by electing under section 217 of the Income Tax Act.

By making a section 217 election, you pay tax on your Canadian-source income at the same rate as Canadian residents and may receive a refund for all or part of the non-resident tax withheld.