This page provides information about the income tax rules that apply to non-residents of Canada.
Your tax obligations
As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive.
Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.
Part XIII tax
Part XIII tax is deducted from the types of income listed below. To make sure the correct amount is deducted, it’s important to tell Canadian payers:
that you’re a non-resident of Canada for tax purposes; and
your country of residence.
The most common types of Canadian income subject to Part XIII tax are:
dividends;
rental and royalty payments;
pension payments;
old age security pension;
Canada Pension Plan and Quebec Pension Plan benefits;
retiring allowances;
registered retirement savings plan payments;
registered retirement income fund payments;
annuity payments;
management fees.
If you receive Canadian income that is subject to Part XIII tax:
Canadian payers, including financial institutions, must deduct Part XIII tax when the income is paid or credited to you.
The Part XIII tax deducted is your final tax obligation to Canada on this income (if the correct amount is deducted).
The usual Part XIII tax rate is 25% (unless a tax treaty between Canada and your home country reduces the rate).
Part XIII tax is not refundable. Therefore, do not file a Canadian tax return to report the income unless you elect to file a return because you receive either:
Canadian rental income from real or immovable properties or timber royalties (see T4144, Income Tax Guide for Electing Under Section 216);
certain Canadian pension income (Electing under section 217).
If you think an incorrect amount of Part XIII tax has been deducted from your income, contact the Canada Revenue Agency.
