Part XIII Voluntary Remittance Letter on T5 Interest Earned

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chelavnzuo
Posts: 25
Joined: Wed Mar 22, 2017 1:08 pm

Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo »

Hi all, I’m a Canadian who has spent 100% of the 2019 live and work in the US. I will receive a T5 from a Canadian bank on GIC interest income pretty soon (this is the only Canadian income I have and I’m unable to sell these GICs until they mature), could someone please kindly help me understand if below are the correct steps to deal with this situation?

1. Find the total interest income on T5 = A, this amount is about $1,500 CAD.
2. Find the deducted/withheld tax amount on T5 = B
3. Calculate the total owing to CRA = C= 25% x (A - B), or should it be 15% by Canada-US Income Tax Convention?
4. Pay the amount C to CRA, with a voluntary remittance letter explaining this is the payment adjustment to volunteer the withholding tax due

Many thanks!
chelavnzuo
Posts: 25
Joined: Wed Mar 22, 2017 1:08 pm

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo »

Sorry I meant to write C = (25% x A) - B
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by nelsona »

GIC interest is not taxable in Canada for non-residents. You should request a refund of your Cdn tax, by filing a non-resident return, with 0 income and claim the withheld tax back.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
chelavnzuo
Posts: 25
Joined: Wed Mar 22, 2017 1:08 pm

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo »

Got it, that's also what I just figured out using the non-resident tax calculator on the CRA website:
https://apps.cra-arc.gc.ca/ebci/nrtc/beta/ng/entry

Thanks so much for the reply!
chrispeterson007171
Posts: 1
Joined: Sat Jul 18, 2020 7:44 am

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chrispeterson007171 »

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