Non‑Resident Tax Return (Section 216)

Often yes, filing a Section 216 return can reduce total tax owing and allow recovery of over-withheld non-resident tax. Non-resident tax is typically withheld at a flat rate on gross rental income, but Section 216 filing allows you to claim deductions for expenses such as repairs, maintenance, property taxes, insurance, and other costs related to earning rental income. By claiming these deductions, your net rental income may be lower than the gross amount subject to withholding, potentially resulting in a refund of over-withheld tax. The amount recoverable depends on your actual expenses and deductions, and results vary based on individual circumstances. We help identify all available deductions and prepare returns that maximize potential recovery while ensuring compliance with Canadian tax rules.

Yes, we coordinate with property managers, rental agents, and other parties to obtain NR4/NR6 slips and ensure complete documentation. Property managers and agents are typically responsible for preparing and issuing NR4 or NR6 slips to non-resident property owners, which report the rental income and non-resident tax withheld. We work directly with these parties to obtain required slips, clarify any questions about income or expenses, and ensure all documentation is complete and accurate. This coordination helps ensure accurate income reporting and proper slip preparation, which is essential for accurate Section 216 filing. Our experience working with property managers and agents helps streamline the documentation process and ensures all required information is obtained efficiently.

Yes, we assist with Individual Tax Number (ITN) applications for non-residents who need Canadian tax identification. An ITN is required for non-residents who need to file Canadian tax returns but don't have a Social Insurance Number (SIN). The ITN application process requires specific documentation including proof of identity, proof of non-resident status, and other supporting documents. We help prepare ITN applications, gather required documentation, and submit applications to CRA. The ITN application process can take several weeks, so we recommend applying well in advance of filing deadlines. Once obtained, the ITN is used for all future Canadian tax filings. We coordinate ITN applications as part of the Section 216 filing process to ensure proper identification for tax purposes.

Deductible expenses on Section 216 returns include costs incurred to earn rental income, such as repairs and maintenance, property taxes, insurance, property management fees, legal and accounting fees, advertising costs, and other expenses directly related to earning rental income. Capital improvements are not immediately deductible but may qualify for capital cost allowance (CCA). Personal expenses or expenses not related to earning rental income are not deductible. Proper documentation is essential to support all expense claims, and we help identify all available deductions and ensure proper documentation. The ability to claim these deductions is what often makes Section 216 filing beneficial compared to accepting the flat withholding rate on gross income.

Section 216 return processing times vary depending on CRA workload and the complexity of your return. Generally, CRA processes Section 216 returns within 8-12 weeks of filing, though processing times can be longer during peak periods or if additional information is requested. Refund processing typically occurs after return assessment is complete. The timing depends on factors such as return completeness, documentation quality, and CRA review requirements. We help ensure returns are complete and properly documented to minimize processing delays. If CRA requests additional information, we assist with providing documentation and responding to inquiries to facilitate timely processing. We coordinate with Personal CRA Audit & Representation services if reviews or inquiries arise.