If you collect rent in Canada and are a non-resident, please read and become aware of what the Canada Revenue Agency (C.R.A.) expects of you with regards to your rental property.

I have had many clients think that this is a choice/option they could opt out of but it is a mandatory requirement by the Canada Revenue Agency for non-residents. I would also strongly urge you to call the C.R.A. if you have any doubts on this issue at 1-855-284-5942.

The Canada Revenue Agency requires non-residents to remit monthly payments. This amount is based on the rent and in general is 25% of the gross rent collected. This must be remitted and received by the 15th of the month following the rental payment.

You also have the option of filing an NR6 form and that allows you to remit on the Net rent collected. The NR6 formallows you to project your expected income and expenses for the year. This information then can be submitted to the C.R.A. and if approved, you will be able to remit on your estimated Net rental income opposed to your gross collected rent.

In order to file an NR6 you, require a local representative. Most property management companies offer this service to their clients along with managing of the property. The representative would make remittances, monthly filings and year-end summary on your behalf. Property Managers can also assist you with completing your NR6 forms. You still have to file your personal taxes on time each year to qualify.

Many people wonder if they are non-residents and the Canada Revenue Agency provides guidelines and assistance if needed to clarify this. I would highly recommend that you review this if you think it may apply to you as penalties for non-compliance can be steep.

For more information on this topic kindly review the Canadian Revenue Website.