NR taxes for nonresidents of canada

danny · Post by **danny** » Tue Dec 14, 2004 12:00 pm

hi

i filed a departure return of 2002. however for that year i received NR 4 for my chequing account but T5 for my investments. T5 have no source tax deducted or NR tax in this case

i have called my bank and they are issuing NR 4's for the investments as well and then sending a check to Revenue Canada. All other elimination of ties etc have been done.

Is it correct that NR tax has to be deducted even from the investments ? I really dont want T 5 hassles and would prefer to get NR4's only so i dont need to bother filing.

nelsona · Post by **nelsona** » Tue Dec 14, 2004 3:42 pm

Depends what the T5 income is.<p>If it is capital gains it isn't taxed in Canada by treaty, so an NR slip would be pointless.

<i>nelsona non grata</i>

Carson · Post by **Carson** » Wed Dec 15, 2004 12:01 pm

Danny:

In short, yes, withholding on interest and dividends and other investment income is required on payments to non-residents of Canada. The standard withholding rate is 25%, but this rate is reduced by Treaty.

Assuming you're in the US, the appropriate Treaty rates are 10% on interest, and 15% on dividends.

---------
Regards,

Carson Hirner

danny · Post by **danny** » Wed Dec 15, 2004 12:09 pm

thanks carson and nelsona. i am actually in europe

must inform my bank so that they automatically deduct the tax. they did it from my current account but forgot to deduct the tax from the interest income on my investment ie GIC's. its probably 10 or 15%

i guess i can ask them to send a check directly to REvenueCanada for my departure year as well.

cheers

danny