NR6
Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real or Immovable Property
Who Must File
Non-residents of Canada who receive rental income from Canadian real property and want to reduce Part XIII withholding from 25% of gross rent to 25% of estimated net rent.
Deadline
Must be filed and approved by the CRA before the first rental payment of the year (typically by January 1)
Penalty
No direct penalty, but without an approved NR6, the tenant/agent must withhold 25% of gross rent
Step-by-Step Filing Instructions
Estimate your expected gross rental income and deductible expenses for the upcoming year.
Complete the NR6 form with your estimated net rental income.
Have your Canadian agent (property manager or representative) co-sign the NR6.
Submit the NR6 to the CRA well before the first rental payment of the year.
Once approved, your agent remits 25% of estimated net rent instead of 25% of gross rent.
File a T1159 (Section 216 return) by June 30 to reconcile actual income and withholdings.
Tips & Best Practices
File the NR6 by December of the prior year to ensure CRA approval before January rents.
You must file a T1159 every year an NR6 is in effect; failure to do so revokes future NR6 eligibility.
A Canadian agent is required; they are jointly responsible for the withholding obligations.
Update the NR6 if your rental income or expenses change significantly.
Frequently Asked Questions
What happens if my NR6 is not approved in time?
Your agent must withhold and remit 25% of gross rental income to the CRA. You can file a T1159 later to recover excess withholding.
Do I need a Canadian agent to file NR6?
Yes. The CRA requires a Canadian resident agent to co-sign the NR6 and be responsible for withholding and remitting the tax.
Can I file the NR6 electronically?
No. The NR6 must be mailed to the CRA. Submit it well in advance to allow processing time before your first rental payment.
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