Old Age Security Return of Income (OASRI)

Delay in OASRI tax package mail out

We are currently experiencing a delay in the mail out of OASRI tax packages. Affected individuals will receive their tax packages in the coming weeks. The T1136 Old Age Security Return of Income form is also available online. We regret any inconvenience and thank you for your patience.

Non-resident seniors who receive Canadian old age security (OAS) payments may have to pay recovery tax on those payments.

As a non-resident senior who receives OAS payments, you must file an Old Age Security Return of Income (OASRI) so that the Canada Revenue Agency (CRA) can determine if you have to pay recovery tax and to make sure that your OAS payments are not suspended.

If you are a resident of a region or country that has a tax treaty with Canada, you may not have to file this return. For more information, see Tax treaties.

Note

The CRA does not issue OAS payments. Contact Service Canada if you have questions about the amount of your cheque, to report a lost or stolen cheque, etc.

Purpose of the Old Age Security Return of Income

The information on your annual OASRI lets the CRA determine if your net world income is more than the threshold.

If your net world income for the year is higher than the threshold for the tax year, recovery tax will be deducted from your monthly OAS payments.

Note

Information on the OASRI return is only used to calculate your recovery tax. The CRA does not calculate any other Canadian income tax from this return.

Recovery tax

Recovery tax is an additional tax applied in the tax year to OAS recipients who report a net world income that is more than the income threshold determined for that year on the OASRI.

The thresholds (in Canadian funds) are:

How recovery tax is calculated

The recovery tax rate is 15% and applies only to the income that is above the threshold for the applicable year ($86,912 for 2023). The threshold for each year is provided above.

Notes

The recovery tax cannot be more than the amount of old age pension income, including supplements, received in the year.

Under no circumstances will the non-resident tax and the recovery tax add up to more than the total OAS pension income, including supplements, received in the year.

To calculate your recovery tax, complete the chart below. However, if any of the following situations applies to you, do not complete this chart. Instead, contact the CRA for the special rules and calculation that apply in these situations:

Calculating OAS recovery tax
Line description Amount Line number
Net world income from line 24200 of your return $ Line 1
OAS repayment threshold for 2023 - $86,912.00 Line 2
Line 1 minus line 2 (if negative, enter "0") $ Line 3
Line 3 multiplied by line 4 × 15% Line 4
Enter the result on line 5. $ Line 5
OAS pension and net federal supplements received from line 11300 of your return $ Line 6
OAS benefits overpayment recovered in 2023 (see line 23200) - Line 7
Line 6 minus line 7 (if negative, enter "0") $ Line 8
OAS recovery tax
Enter whichever is less: amount from line 5 or line 8.
$ Line 9
Line 9 multiplied by line 10 × 75% Line 10

Enter the result on this line

$                

Line 11

Enter the amount from line 11 on line 23500 of your return.

Example

You are a non-resident senior who received Canadian old age security pension income of $5,000 during the 2023
tax year. Your net world income for the year is $88,237.

You calculate your recovery tax as follows:

Calculating OAS recovery tax example
Line description Amount Line number
Net world income from line 24200 of your return $88,237 Line 1
OAS repayment threshold for 2023 -  $86,912 Line 2
Line 1 minus line 2 (if negative, enter "0") $1,325 Line 3
Line 3 multiplied by line 4 ×   15% Line 4
Enter the result on this line. $198.75 Line 5
OAS pension and net federal supplements received from line 11300 of your return $5,000 Line 6
OAS benefits overpayment recovered in 2023 (see line 23200) -  $0 Line 7
Line 6 minus line 7 (if negative, enter "0") $5,000 Line 8
OAS recovery tax
Enter whichever is less: amount from line 5 or line 8.
$198.75 Line 9
Line 9 multiplied by line 10 ×  75% Line 10
Enter the result on line 11. $149.06 Line 11

The amount from line 11 is your Old Age Security recovery tax for 2023.

If you are subject to the OAS recovery tax for 2023, your future monthly OAS pension payments, starting with the payment for July 2024, might have recovery tax deducted from them.

Tax treaties

You have to file an OASRI for the year unless you were a resident of a region or country listed below at any time in 2023 and you received OAS pension during that period.

Generally, the recovery tax applies to non-residents as long as it is not limited or exempted by a tax treaty.

You do not have to file this return if you were a resident of one of the following regions or countries in 2023 and you do not have plans to move to a region or country that is not included on the list before July 1, 2025:

Notes

If you were a resident of Brazil in 2023 and are a Brazilian national, you do not have to file this return.

If you were a resident of the Philippines in 2023 and the total of your 2023 Canadian pensions was CAN$5,000 or less, you do not have to file this return.

If the tax treaty your region or country of residence has with Canada is amended, you may not have to file this return. For more information, contact the CRA.

Net world income

Net world income is the total of all income paid or credited to you in a year from Canadian and foreign sources minus any allowable deductions. It includes income from:

When calculating your net world income, do not reduce the income by any tax that has already been withheld.

Return due date

Your OASRI for 2023 must be filed no later than April 30, 2024.

When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on the next business day. For more information, see Due dates and payment dates.

If you owe recovery tax for 2023 (line 48500 of your return) and file your return late, the CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing for 2023, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if the CRA charged you a late-filing penalty on a return for any of the three previous years.

Note

Filing your annual OASRI on time also helps ensure that your old age security pension is not suspended by Service Canada.

Other Canadian tax returns

If you filed Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld, for tax year 2023 with the intention of making a section 217 election and the CRA approved it, you must file a return under section 217 of the Income Tax Act.

If you filed Form NR6, Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real or Immovable Property or Receiving a Timber Royalty, and it was approved for the tax year, you must file a section 216 tax return.

If you received employment or business income from Canada, or have taxable capital gains from disposing of taxable Canadian property, you may also have to file an Income Tax and Benefit Return.

For more information about filing a Canadian income tax return, see Filing your income tax return.

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