Responsibilities of Canadian agent for NR6- Net rental tax

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NewCanadian
Posts: 75
Joined: Sun Mar 07, 2010 5:07 pm

Responsibilities of Canadian agent for NR6- Net rental tax

Post by NewCanadian »

I have applied for NR6 through one my relatives who lives in Canada as my Canadian agent. I sent him link to T4061 since he is doing first time. Hence just be sure, below is agent responsibilities as his check list.

Monthly responsibility-
1) Calculate net rental income i.e. rent received minus expenses and pay 25 % tax on net income to CRA using my Non resident account number using online payment option and XIII option before 15th of each month starting when CRA NR6 approval is received.
2) Inform me transaction number of payment.

Yearly responsibility-
1) Complete NR4 slip and send to me before end March of next year.
2) Complete NR4 summary form which is essentially combined information of me and my wife tax paid and send to CRA alongwith NR4 slip. He is agent only for us and has no other clients.

My interpretation for NR601 is that it is not applicable to our case and therefore not required to be submitted to CRA.

Am I missing any elements?
Please advise.
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

The 25% tax is applicable on the GRoss rental not the net rental until the application for the net amount is approved, it has to be made and applied for when the first rental income is received. So you must get prior approval to use the net rental method before you begin using it otherwise you remitt on the gross rent, assuming approval is obtained on time then you seem to be on track with your analysis.
JG
nelsona
Posts: 18390
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Until the CRA tells your agent what monthly percent to withhold, he must withhold and remit 25% gross.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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