Should you elect

You may benefit from filing a return under section 217 if the total tax payable on line 43500 of your return is less than the tax you would pay without this election.

When the Canada Revenue Agency (CRA) assesses your return, your election will only apply if it is beneficial to you.

On this page

• Calculate the tax you would have paid
• CRA determination of your election
• Reducing tax withheld

Calculate the tax you would have paid

If you did not elect under section 217, your tax would be:

• $A
  Non-resident tax required to be withheld (line 44300 of Schedule C)
• plus$B
  Tax payable on:

  • Canadian-source employment and business income
  • Net Canadian partnership income (if you are a limited or non-active partner)
  • Taxable capital gains from disposing of taxable Canadian property
• equals
  Amount of tax you would have paid

To calculate your section 217 tax payable, see Calculate your tax payable.

CRA determination of your election

The CRA will only accept your section 217 election if your return is filed by the due date.

If the election is beneficial

The CRA will refund any tax withheld that is more than the amount you owe.

If less than the required amount was withheld, you may still have a balance owing.

Before you file

Report non-resident tax withheld on line 43700 from your information slips.

Attach:

• Schedule A, Schedule B, and Schedule C to your return
• copies of your information slips

Failure to attach the schedules and information slips may delay processing and any refund.

If the election is not beneficial

If the payer withheld more than the required amount, you can request a refund using Form NR7-R.

If the payer withheld less than the required amount (for example, the CRA approved your Form NR5), you must pay the difference.

Reducing tax withheld

If you plan to elect under section 217 for future eligible income, you can apply to reduce non‑resident tax withholding:

1. Complete Form NR5
2. Send it to the CRA by October 1 or before the first payment is due

The CRA will review your completed Form NR5 to determine if section 217 benefits you.

If approved:

• Your payer(s) will reduce the amount of non-resident tax withholding for up to five years
• You must file a section 217 return for each year covered

For more information, see Form NR5 – 5-year Administrative Policy.

If not approved, you can still file a section 217 return to claim a refund of all or part of the non-resident tax withheld on your eligible section 217 income.