T2062 and T2062A: Which Certificate of Compliance Form You Need?

The difference between T2062 and T2062A comes down to what type of property you are selling as a non-resident of Canada. Form T2062 is used for Canadian real estate dispositions, while Form T2062A covers other taxable Canadian property including private corporation shares, partnership interests, and resource properties. Understanding which form applies to your specific sale prevents processing delays and ensures compliance with Section 116 requirements.

Filing the wrong form can delay your certificate of compliance application by weeks or months, potentially affecting your closing timeline and fund release.

Understanding Certificate of Compliance Requirements

Non-residents disposing of taxable Canadian property must obtain clearance from CRA before completing their sale. The certificate of compliance process under Section 116 of the Income Tax Act requires specific forms depending on the type of property being sold. This requirement applies whether your sale results in a capital gain or loss, and missing the proper filing can trigger automatic withholding that holds up your proceeds indefinitely. 

Our resource on How to Get Certificate of Compliance in Canada provides the complete overview of this process, while understanding T2062 and T2062A ensures you file the correct form from the start.

What is Form T2062?

Form T2062 handles the disposition of Canadian real estate by non-residents. This form covers residential properties, commercial buildings, vacant land, rental properties, and any other real estate located in Canada. Whether you are selling a downtown Toronto condo, a Vancouver investment property, or rural farmland in Saskatchewan, Form T2062 is the required application. The form requires detailed information about your purchase price, capital improvements, selling costs, and estimated capital gain or loss on the disposition.

Real estate transactions represent the majority of certificate of compliance applications because property sales are easily identifiable and involve substantial amounts. CRA processing typically takes six to twelve weeks once they receive a complete T2062 package with all supporting documentation. The application must include your original purchase agreement, closing documents, receipts for capital improvements, legal fees, real estate commissions, and any other costs that affect your adjusted cost base or proceeds of disposition.

What is Form T2062A?

Form T2062A covers the disposition of other taxable Canadian property that is not real estate. This includes shares of private Canadian corporations, partnership interests in Canadian partnerships, capital interests in Canadian trusts, and resource properties such as timber limits or mining rights. The form also applies to dispositions of Canadian resource properties, certain life insurance policies, and interests in non-resident trusts with Canadian connections.

Private corporation shares represent the most common T2062A filing situation. When non-residents sell shares in Canadian-controlled private corporations, especially those holding real estate or carrying on business in Canada, the disposition falls under Section 116 even though no real property changed hands directly. The same clearance requirements apply, but the documentation and valuation process differs significantly from real estate sales.

Key Differences Between T2062 and T2062A

The forms serve different property types but follow the same basic clearance process.

1. Property Coverage

T2062 covers Canadian real estate exclusively, while T2062A handles all other taxable Canadian property dispositions. Real estate includes buildings, land, and any fixtures permanently attached to the property. Other taxable Canadian property encompasses shares, partnership interests, resource properties, and trust interests that have Canadian connections under the Income Tax Act.

2. Documentation Requirements

T2062 applications require real estate documentation including purchase agreements, title transfers, property tax statements, and improvement receipts. T2062A applications need corporate documents, share certificates, partnership agreements, financial statements, and business valuations depending on the specific property type being disposed of.

3. Processing Complexity

Real estate dispositions follow straightforward valuation methods using comparable sales and property assessments. Other taxable Canadian property often requires business valuations, fairness opinions, or specialized appraisals that extend processing time and increase preparation costs.

When to Use Each Form?

The property type determines which form applies to your situation.

Use T2062 For:

• Residential homes, condos, townhouses
• Commercial buildings and office space
• Vacant land and development properties
• Rental properties and apartment buildings
• Farm property and agricultural land
• Any structure permanently attached to Canadian land

Use T2062A For:

• Shares in private Canadian corporations
• Partnership interests in Canadian partnerships
• Capital interests in Canadian trusts
• Resource properties including mining claims
• Timber limits and forestry rights
• Life insurance policies with Canadian connections

Understanding Canada US Tax Treaty provisions becomes important when determining whether your disposition qualifies for treaty protection, while NR73 Determination of Residency Status may be necessary if your Canadian residency status is unclear during the disposition year.

Comparison Table: T2062 vs T2062A

This table summarizes the key differences between both certificate of compliance forms to help you choose the right one for your situation.

Aspect	Form T2062	Form T2062A
Property Type	Canadian real estate only	Other taxable Canadian property
Common Uses	Houses, condos, land, commercial buildings	Private corp shares, partnerships, trusts
Documentation	Purchase agreements, title docs, improvement receipts	Corporate records, valuations, financial statements
Processing Time	6-12 weeks typical	8-16 weeks due to complexity
Valuation Method	Comparable sales, assessments	Business valuations, appraisals
Treaty Relief	May apply under Canada US Tax Treaty	May apply depending on property type
Follow-up Filing	Final tax return required	Final tax return required

Common Filing Mistakes to Avoid

Filing the wrong form creates unnecessary delays and processing complications. The most frequent error involves corporate share sales where the underlying corporation owns real estate. Non-residents often assume they need T2062 because real estate is involved, but selling shares in a corporation that owns property requires T2062A instead. The distinction matters because you are disposing of shares, not real estate directly, even though the shares derive value from underlying real estate holdings.

Another common mistake involves partnership interests where the partnership owns Canadian real estate. The disposition of your partnership interest requires T2062A filing, not T2062, regardless of whether the partnership assets include Canadian real property. Deemed Disposition Canada rules may also apply in certain situations, requiring careful analysis of your specific circumstances.

Mixed property situations create additional complexity. If you are disposing of both real estate and other taxable Canadian property as part of the same transaction, separate forms may be required for each component of the sale.

Conclusion

Choosing between T2062 and T2062A depends entirely on the type of taxable Canadian property you are disposing of as a non-resident. Real estate sales require T2062, while shares, partnerships, and other business interests need T2062A. Filing the correct form with complete documentation prevents delays and ensures your certificate of compliance in Toronto gets processed efficiently. Understanding these distinctions helps non-residents navigate Section 116 requirements successfully and recover their sale proceeds without unnecessary complications or extended waiting periods.