Overview
Living or earning income outside Canada comes with different types of tax obligations.
Canadian non-residents are taxed on income from Canadian sources. Some income is subject to withholding taxes (Part XIII), while other types require filing a Canadian tax return (Part I). Bestax Tax Services in Mississauga simplify this process for you. Our team helps you stay compliant, understand your obligations, and take advantage of all available tax credits, deductions, and exemptions to decrease your tax burden. Contact Bestax to simplify your taxes for you. We make sure you pay only what you owe according to the rules and regulations of CRA.
Why it matters
Even if you live outside Canada, income earned in the country is subject to taxation.
Certain types of Canadian income, such as dividends, interest, and royalties, are subject to Part XIII withholding tax, usually at 25%. This withholding is often your final tax obligation unless you elect to file a Canadian return to reduce your liability potentially.
Non-residents who carry on a business in Canada, sell Canadian property, or earn employment income must file a Canadian tax return (Part I). Compliance ensures you avoid penalties and take advantage of allowable deductions.
Owning Canadian rental property triggers special rules. Typically, 25% of gross rent is withheld by your agent. By filing Form NR6 before the first rent payment, you can have tax withheld on net rental income, and you must file Form T1159 by June 30 of the following year if electing under Section 216.
Non-resident corporations must file a T2 return, including Schedule 91 for treaty-based exemptions and Schedule 97 for additional information. Payments for services performed in Canada are subject to a 15% withholding tax, requiring careful compliance.
Without guidance, navigating these rules can result in missed deadlines, excessive withholding, and penalties. Professional support ensures accurate filings, timely submissions, and correct tax payments.
CRA rules for non-residents change frequently. For example, as of 2025, deemed residents and emigrants can file their 2024 returns through EFILE and NETFILE. Bestax stays current with all updates to help you take advantage of the most efficient filing methods.
How we work
Bestax helps Canadians living abroad stay compliant with CRA rules while reducing their tax burden.
Why Bestax
At Bestax, you get the personal care of a small firm and the expertise of a national accounting team. We make complex Canadian tax rules simple to understand and easy to manage.
We focus on helping non-residents with Canadian tax matters.
We take care of everything from start to finish so you stay compliant and stress-free.
Tax laws change often. Our experts stay updated on new CRA rules to make sure your returns are accurate and filed on time.
We keep things simple. No hidden costs. No jargon. Just clear advice and reliable service.
We take the time to learn about your goals and tailor our advice so it fits your needs and meets all Canadian tax requirements.
We don’t just file your taxes, we help you plan ahead.
Our Success Stories
Verified reviews published on Trustpilot and Google.
During a very busy personal and corporate tax season in Canada, Bestax stayed on top of our tax filings, bookkeeping, and CRA deadlines. Amazing service when we needed it
After years of DIY tax filing, I decided to work with professionals, and I’m glad I chose Bestax. Their team corrected years of minor errors and even identified deductions I had missed. The savings more than paid for the service.
Bestax Accountants in Mississauga provides exceptional service for small businesses. Their expertise in corporate accounting, tax planning, and payroll services has been invaluable to my company.
FAQ
Answers to what clients ask us most about non-resident tax services. Still stuck? Send us the question.
One that generally lives outside Canada and has limited residential ties. If you spend 183 days or more in Canada without strong residential connections and are not considered a resident of another country under a tax treaty, you may be deemed a resident for tax purposes.
Common types of Canadian income subject to Part XIII withholding tax include dividends, rental and royalty payments, pensions, annuities, and management fees. Payers are required to withhold the tax when making these payments.
Part I tax applies to income from employment or business conducted in Canada, gains from selling certain Canadian property, and some pensions or scholarships. Even if tax is withheld, non-residents may need to file a return to calculate their final tax liability.
By default, 25% of gross rent must be withheld. Filing Form NR6 before January 1 or before the first rent payment allows tax to be withheld on net rental income. Non-residents must also file a Section 216 return (Form T1159) by June 30 of the following year.
Form NR6 is an undertaking filed with the CRA that permits your agent to withhold 25% tax on net rental income instead of gross rent. It must be submitted annually before the first rental payment or by January 1.
Section 216 returns for rental income are generally due within two years of the income year. For example, rental income received in 2024 must be reported by June 30, 2025.
Yes. Beginning February 2025, deemed residents and emigrants can file their 2024 individual income tax and benefit returns using EFILE or NETFILE, making filing more convenient and efficient.
Section 217 allows non-residents to file a Canadian return for certain pension and annuity income. This can help recover overpaid Part XIII tax and ensure proper reporting of income.
Corporations carrying on business in Canada or disposing of taxable Canadian property must file a T2 return, including Schedule 91 for treaty-based exemptions and Schedule 97 for Canadian-sourced income. Payments for services performed in Canada are subject to a 15% withholding tax.
Bestax reviews applicable tax treaties, files elections like Section 216 or 217, ensures correct withholding, and identifies eligible deductions. Our proactive planning helps minimize taxes, avoid penalties, and can result in refunds for non-residents.
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Reach out to Bestax for a 1 on 1 consultation. We will assess your situation, explain your obligations and help you minimise taxes.
