Our team is here to navigate the complexities of cross-border taxation, allowing you to focus on growing your investments and achieving your global financial objectives. If you are selling your property, or purchasing property for the first time in Canada, our team can help you throughout the taxation process.
CPCM & Co is happy to assist Non-Residents of Canada with their investments in Canadian income-generating assets.
Our expert team is here to navigate the complexities of cross-border taxation, allowing you to focus on growing your investments and achieving your global financial objectives. If you are selling your property, or purchasing property for the first time in Canada, our team can help you throughout the taxation process.
Individuals who are not residents of Canada but earn rental income from Canadian properties are required to file a Section 216 tax return.
The Section 216 tax return allows non-residents to report their rental income earned from Canadian properties to the Canada Revenue Agency (CRA). This return enables non-residents to calculate their taxable income and pay any applicable taxes on their Canadian rental income.
When filing a Section 216 tax return, non-residents must report their rental income and expenses incurred in earning that income. They can deduct eligible expenses such as property taxes, maintenance costs, insurance premiums, and property management fees from their rental income to determine their net rental income for taxation purposes.
Non-residents are subject to withholding tax on their Canadian rental income, typically at a rate of 25% of the gross rental income. However, they can elect to file a Section 216 tax return to report their rental income and claim deductions and credits to reduce their tax liability. This allows non-residents to potentially reduce their withholding tax obligations and optimize their tax situation.
It's important for non-residents earning rental income from Canadian properties to comply with the Canadian tax rules, the professionals at CPCM & Co. can assist you with this process.
is a tax filing for non-residents who sell or dispose of certain types of Canadian property. This includes real estate and certain shares of Canadian corporations. The purpose of the Section 116 return is to ensure that any taxable gains from the sale of Canadian property by non-residents are properly reported to the Canada Revenue Agency (CRA) and any applicable taxes are calculated and remitted.
When filing a Section 116 return, non-residents must provide detailed information about the sale or disposition of the Canadian property, including the date of the transaction, the sale price, and any associated expenses. They must also calculate the capital gain or loss on the disposition, taking into account factors such as the original purchase price, improvements made to the property, and any eligible deductions or exemptions available under Canadian tax law.
It's important for non-residents earning rental income from Canadian properties to comply with the Canadian tax rules, the professionals at CPCM & Co. can assist you with this process.
Certificates of compliance are documents issued by the Canada Revenue Agency (CRA) to confirm that non-residents have fulfilled their tax obligations in relation to the sale or disposition of Canadian property. These certificates are typically required when non-residents sell Canadian real estate or certain shares of Canadian corporations. The purpose of the certificate is to ensure that any applicable taxes on the gains from the sale of Canadian property by non-residents are properly calculated, reported, and remitted to the CRA.
To obtain a certificate of compliance, non-residents must file the necessary tax returns and provide all relevant information about the sale or disposition of the Canadian property to the CRA. Once the CRA has reviewed the information provided and verified that all tax requirements have been met, they will issue the certificate of compliance. This certificate serves as confirmation that the non-residents have fulfilled their tax obligations in relation to the sale of Canadian property, providing assurance to both the seller and the buyer that the transaction has been conducted in accordance with Canadian tax laws.
