Myself paying 25 % gross rent withholding tax to CRA

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GTAresident
Posts: 42
Joined: Sun Oct 04, 2009 10:05 pm

Myself paying 25 % gross rent withholding tax to CRA

Post by GTAresident »

I have read many forums informing that a non resident must have local Canadian person depositing 25 % of gross rental for XIII to CRA. In my case, I had taken post dated checks from my tenants when I was resident. When I came to US, I called CRA International tax office and set up my non resident account on phone.

Although I moved to US, I kept my TD Canada Trust bank account. Simply informed them that I live in US to update address. I send my rent check to bank by mail and get deposited. On or before 15th of every month, I pay 25 % rent amount as tax for previous month rent using CRA website link "My Payments" using Interac online from TD bank. I regularly receive receipt for the payments made from CRA to my US address however I always print and save electronic copies of payment made online

For 2009 taxes now I have now received NR4 slip from CRA and in the space provided for local agent's details, I see a CRA stamp.

Am I missing something or is the process modified or simplified?

Due to hassel in finding out local agent to fill NR6 and also expenses associated with his commission, I plan to continue to pay 25 % tax in future years as long as a 216 return refunds me most of money based on net rental income, I am OK.

I will update on this when my 2009-216 return get assessed in couple of months.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I gues its fine. The person who us responsible to remit the 25% is actually your tenenat, so you should check with them.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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