Worldwide Canadian non-resident income tax return service

Earning an income in a country that you are non-resident is very common today. Corporations have locations in many countries and employees have to be mobile. Individuals will also invest their disposable income in foreign countries. To ensure the base country receives it’s fair share of tax, the base country will levy “withholding taxes”. These withholding taxes can be imposed on rental income, wages, independent contractor payments, interest, dividends, capital gains etc..

Withholding taxes is usually the responsibility of the payor. This can be a Canadian resident. For example, if a non-resident sells Canadian real estate, the Canadian purchaser could be liable for the tax on the sale. It would be prudent for both the Canadian and non-resident parties to have professional help from the tax accountants and financial advisors at GTA Wealth. Expensive and time consuming back tax issues can occur if the non-resident tax related rules and regulations are not followed correctly.

Quick facts about Non-resident Canadian Tax

• As a non-resident with Canadian tax obligations, you are legally required to file personal tax returns if you have taxes payable or you receive a request to file your income taxes
• Payments to non-residents are accompanied by withholding tax requirements.  Make sure the proper withholding tax is remitted and reduced if possible i.e. rental income, capital gains, dividends etc.
• You are carrying on business in Canada as a non-resident, you will be required to file a personal or corporate tax return.
• If you are a non-resident and selling Canadian real estate you may have to file a Canadian income tax return i.e. taxable Canadian property
• If you are a non-resident and you sell Canadian real estate (taxable Canadian property) there will be withholding tax obligations
• If you are performing services in Canada there will be a 15% withholding tax obligation on the payor
• Preparing your income tax returns on a timely basis reduces your risk of an expensive, intrusive and time-consuming tax audit
• Having tax professionals well versed in Canadian and International tax regulations prepare your income tax return will enable you to utilize the available deductions and credits.

If a non-resident owns Canadian real estate and is renting the property, there will be a withholding tax obligation. The withholding tax can be 25% of the rental revenue. This is steep! This can be your final tax obligation. However, in some situations, it is beneficial to file an election to report your income tax on a net income basis. The withholding tax can then be based on the net income. A special tax return will have to be filed for the Canadian rental property this owned by the non-resident.

What is your obligation if you are a non-resident performing services in Canada? Regulation 105 of the Canadian Income Tax Act imposes a 15% withholding tax on fees, commissions or other amounts earned from services rendered in Canada by non-resident individuals and corporations. The Regulation does not apply to the sale of goods; it only applies to services.

What is your tax obligation if a non-resident sells Canadian real estate? Who will be responsible for the tax on the capital gain of the sale of the rental property? The Canadian purchaser could be responsible for the tax bill! This would be an unpleasant surprise. Contact GTA Wealth to take care your non-resident tax issues.

Are you a Canadian company hiring non-residents as employees? If so, Regulation 102 may be applicable to you. Withholding tax on the wages to the non-resident employees may be required. For assistance with your withholding tax, contact GTA Wealth.

Benefits of GTA Wealth Wealth Management for non-resident tax services

• Free financial review: With the preparation of a tax return, GTA Wealth will provide you with a free financial needs analysis i.e. tax planning, investment return review etc.. Integrated tax solutions can make a positive difference to your financial planning
• Expertise: Tax Accountants and certified financial advisors to provide you with the advice you need to retire early, educational saving plans for your children, investments etc.; all with an integrated tax strategy to help save on the income taxes you pay.
• Efficiency: GTA Wealth can provide multiple services. This can save you time and money; one financial advisor to help you with your income tax, investments, mortgages, and insurance.
• Flexible: GTA Wealth has multiple offices across the GTA and flexible meeting times to meet your busy schedule. It does not matter where you are located, our non-resident tax services are available to clients anywhere internationally.

GTA Wealth, the experts in Canadian non-resident tax services

Have you sold Canadian real estate? Are you performing services in Canada as a non-resident? Are you earning rental income on Canadian real estate? Uncollected withholding tax can be a huge risk. To ensure you reduce your risk and taxes, contact the professional tax accountants and financial advisers at GTA Wealth for all your non-resident income tax return requirements. You will not find anyone more qualified and experienced in the field.

Contact or call GTA Wealth Management toll free 1 855 GTA WLTH (855 482 9584). A professional tax accountant is ready to serve all your Canadian non-resident personal income tax return needs. GTA Wealth Management Inc. has three convenient locations in Mississauga, Toronto and Markham to serve you.