Non-residents of Canada

This page provides information about the income tax rules that apply to non-residents of Canada.

Topics

Residency status

Non-residents

You are a non-resident for income tax purposes if you:

Notes

If you lived outside Canada during the tax year and you are a government employee, a member of the Canadian Forces or their overseas school staff, or working under a Global Affairs Canada assistance program, see Government employees outside Canada for the rules that apply to you. These rules can also apply to your dependent children and other family members.

If you sojourned in Canada for 183 days or more (the 183-day rule) in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country, see Deemed residents of Canada for the rules that apply to you.

Your tax obligations

As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive.

Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.

Part XIII tax

Part XIII tax is deducted from the types of income listed below. To make sure the correct amount is deducted, it's important to tell Canadian payers:

The most common types of Canadian income subject to Part XIII tax are:

Notes

Generally, the interest that you receive or that is credited to you is exempt from Canadian withholding tax if the payer is unrelated (arm's length) to you. For more information, see the Canada Revenue Agency's Non-resident tax calculator or contact the Canada Revenue Agency.

If you receive old age security pension during the tax year, you may have to file the Old Age Security Return of Income (OASRI) each year.

If you receive Canadian income that is subject to Part XIII tax:

If you think an incorrect amount of Part XIII tax has been deducted from your income, contact the CRA.

For more information about Part XIII tax, see Information Circular IC77-16R4, Non-Resident Income Tax.

Part I tax

The payer usually deducts Part I tax from the types of income listed below. However, if you carry on a business in Canada, or sell or transfer taxable Canadian property, you may have to pay an amount on account of tax:

Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may also have to file a Canadian income tax return to calculate your final tax obligation to Canada on:

Example

You live permanently in England. During the year, you received interest income from your bank account in England and business income from a permanent establishment in Canada.

As a non-resident of Canada, you will file a Canadian return for the year to report only your business income from Canada. You will not report the interest income from your bank account in England on your Canadian return. 

Disposing of certain Canadian property

For the procedures you must follow if you sell or transfer, or plan to sell or transfer taxable Canadian property (such as real estate, business property, or unlisted shares of a Canadian corporation), see Disposing of or acquiring certain Canadian property.

Electing to file

There are two situations in which you can elect to file a Canadian income tax return for income from which Part XIII tax was deducted:

If you elect to file a Canadian income tax return, you may be able to claim a refund for part or all of the Part XIII tax deducted.

For more information:

Filing your income tax return

You must file a Canadian income tax return if you:

For more information, see Do you have to file a return?

When completing your tax return:

Note

If you receive Canadian rental income or timber royalties and you elect to file, you must report this income on a separate tax return, but you do not include any other type of Canadian income on this separate return. In this situation, you could file more than one Canadian tax return in a tax year: 

  • one for the rental income from real or immovable properties or timber royalties
  • one for any other type of Canadian income that you receive

Which income tax package should you use?

The type of Canadian income you receive during the tax year determines which income tax package you should use.

If you receive only income from employment or business use the income tax package for the province or territory where you earn the income along with Guide T4058, Non-Residents and Income Tax. However, if you also receive other types of income (capital gains and/or taxable scholarships, fellowships, bursaries, or research grants), you will also need Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions.

If you receive only other types of taxable Canadian-source income (such as scholarships, fellowships, bursaries, or research grants, capital gains, or from a business with no permanent establishment in Canada), use the Income Tax and Benefit Package for Non-Residents and Deemed Residents of Canada.

Due to international mail delays, the CRA is temporarily accepting non-resident income tax returns through fax. You can fax your return to the tax centre applicable to your country of residence.

Filing due date

Your tax return has to be filed on or before:

Note

A balance of tax owing must be paid on or before April 30 of the year after the tax year, regardless of the due date of the tax return.

Entitlements to benefits

Canada child benefit

As a non-resident, you are not eligible to receive the Canada child benefit (CCB) unless you are the spouse or common-law partner of a deemed resident and you meet the CCB eligibility requirements.

Forms and publications

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