Income Tax Information for Non-Resident Corporations

A deemed non-resident maintains significant ties to Canada but is also considered a resident of another country under a tax treaty with Canada. Deemed non-residents follow the same tax rules as non-residents.

Yes, non-resident corporations must file a T2 return if they:

• Carry on business in Canada.

• Have taxable capital gains.

• Dispose of taxable Canadian property.

Yes, non-residents pay tax on income from Canadian sources. This is typically taxed under Part XIII Tax (25% withholding) or Part I Tax. Tax rates can be reduced to 15% with a tax treaty.

Yes, non-residents can invest in Canada, including real estate. However, income earned from Canadian investments is subject to taxation.

You are a non-resident of Canada for tax purposes if:

• You live outside Canada throughout the year.

• You have no significant residential ties in Canada.

• You stay in Canada for less than 183 days in a year.

Becoming a non-resident for tax purposes does not affect your citizenship or permanent residence but may impact benefits like health cards and child benefits.

You are a tax resident if you maintain significant residential ties in Canada, even if you live or travel outside the country.

Yes, non-residents can purchase property in Canada. However, they may be subject to land transfer taxes, including the Non-Resident Speculation Tax (NRST) of 15% in some regions like Ontario.

Yes, with proper identification, non-residents can open a bank account in Canada, often requiring an in-person visit to a financial institution.