Non-residents of Canada or Foreign Investors
Non-Residents of Canada or investors from another country who own investment properties in Canada which generate rental revenues are required to pay 25% of net annual income to Revenue Canada as income tax.
Most property management companies opt for the simpler method of withholding tax remittance by simply giving 25% of gross rental revenue to Revenue Canada and have your accountant file for a tax return a year after.
We prefer the more complicated method of forecasting the upcoming year's net income and remit only 25% of the net income to Revenue Canada. Then we work with your accountant after the fiscal year ends to balance the books with Revenue Canada; thereby minimizing the opportunity costs for your valuable revenue stream. After all Revenue Canada does not pay interests on your tax return. We know because we are investors, too.
Preparing and submitting NR6 forms and rental expense breakdown schedules to Revenue Canada before every fiscal year begins.
Withholding Tax Remittance
On going remittance of non-resident withholding tax to Revenue Canada. 25% of forecasted NET income will be remitted.
Preparing and submitting NR4 forms after every fiscal year ends.
Preparing and synchronizing annual financial statements, NR6 forms, and NR4 forms with your accountant for income tax preparation before June 30 deadline every year.