Non-Resident Tax Filing Canada: When to File a Section 216?

Non-Resident Tax Filing Canada: When to File a Section 216?

If you are a non-resident Canadian living in the Middle East (UAE, Qatar, Saudi Arabia) or any other country (e.g., USA, UK), and you receive rental income from real or immovable property in Canada, it is important to be aware of your tax obligations. In this blog post, we will explore when and how to file a Section 216 to ensure compliance with the Canadian tax laws. Additionally, we will introduce TaxReturnFiler’s intuitive e-filing platform, which simplifies the non-resident tax filing Canada process and offers expert advice to taxpayers at a reasonable cost.

Understanding Non-Resident Tax Withholding

When a non-resident Canadian receives rental income from property in Canada, the payer (such as the tenant or property manager) is required to withhold non-resident tax at a rate of 25% on the gross rental income paid or credited to you. Typically, the responsibility of remitting this tax to the Canada Revenue Agency (CRA) lies with the receiver or the agent of the receiver.

Filing an NR4 Pro-Forma

At the end of the tax year, the receiver must file an NR4 pro-forma with the CRA, requesting an NR4 slip based on the remitted tax. The NR4 slip shows the gross amount of rental income paid to you throughout the year and the amount of non-resident tax that was withheld. In case an NR6 application is approved, the receiver’s agent becomes responsible for filing the NR4 and providing a copy to the rental income receiver for filing Section 216.

Understanding Section 216

Section 216 of the Canadian Income Tax Act applies to non-residents who receive rental income from Canadian property. This section allows non-residents to file a tax return to report their rental income and claim deductions for certain expenses related to the property. By filing under Section 216, non-residents can reduce their tax liability and ensure compliance with Canadian tax laws.

When to File a Section 216

The deadline for filing a Section 216 return is 2 years from the end of the tax year in which the rental income was received. However, if an NR6 application is approved, the deadline is extended to June 30th. It is essential to adhere to these deadlines to avoid penalties and ensure a smooth non-resident tax filing Canada process.

Introducing Tax Return Filer

TaxReturnFilers is a user-friendly and intuitive e-filing platform that caters to non-resident Canadians with rental income in Canada. With a focus on accuracy and simplicity, TaxReturnFilers leverages technology to bring expert advice to taxpayers at a reasonable cost.

Advantages of Using Tax Return Filer

  1. Accuracy and Compliance: TaxReturnFiler ensures that your tax returns are accurately prepared, minimizing the risk of errors and potential CRA audits.

  2. Expert Guidance: The platform provides expert guidance and support throughout the non-resident tax filing Canada process, ensuring that you take advantage of all eligible deductions and credits.

  3. User-Friendly Interface: TaxReturnFiler’s interface is designed to be user-friendly and straightforward, making it easy for non-residents to navigate and complete their tax returns.

  4. Secure and Confidential: Your data and personal information are treated with the utmost confidentiality and security, giving you peace of mind while filing your taxes online.

  5. Reasonable Cost: TaxReturnFiler offers its services at a reasonable cost, making it an affordable option for non-resident Canadians with rental income.


As a non-resident Canadian receiving rental income from property in Canada, understanding and complying with the tax regulations is crucial. Filing a Section 216 return within the specified deadlines can help you optimize your tax liabilities and avoid penalties. TaxReturnFiler’s intuitive e-filing platform simplifies the non-resident tax filing Canada process, providing accurate and expert guidance at a reasonable cost. Ensure smooth tax filing and compliance with the help of TaxReturnFiler to make the most of your non-resident tax filing Canada experience.

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