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Friday, 6 January 2012

NR6: Better Way To Pay Non-Resident Tax?

What is NR6?
NR6 is a government form undertaking to file a Canadian Tax Return within 6 months of the year end.

2 Ways to pay non-resident tax on rental income:

1/  Pay 25% of gross rental revenue (ie before any expenses) to Revenue Canada and file a tax return a year after to claim back overpaid amount.

2/  Forecast the upcoming year's net income and remit only 25% of the net income (instead of gross income) to Revenue Canada. Then after the fiscal year ends, settle any difference with Revenue Canada by filing a Canadian Tax Return within 6 months of the year end.

A NR6 form (undertaking to file a Canadian Tax Return)  has to be completed by non-residents or their agent.

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I am a realtor specializing in the residential properties in the Greater Vancouver, British Columbia. I have been awarded with 15 years top achievement Medallion Award by the Greater Vancouver Real Estate Board.