Canada: More time for elections by non-resident individuals
Canada: Time for elections by non-resident individuals
The Canada Revenue Agency (CRA) announced that certain non-resident individuals have more time to make elections for their 2019 tax year.
Non-resident individuals generally would be required to file by 30 June 2020 a form T1159, Income Tax Return for Electing Under Section 216. Filing this return allows the non-resident individuals to pay Part I tax on their net Canadian-source rental or timber royalty income—instead of paying Part XIII withholding tax on the gross amount. Typically, the return election is due by 30 June 2020.
The CRS announced that these non-resident individuals now have until 1 September 2020 to elect to file form T1159.
Non-residents who elect to include all qualifying Canadian income on a Canadian income tax return and pay tax on this income under Part I (instead of the Part XIII withholding tax) for the 2019 tax year may benefit from this extension of time.
Read a June 2020 report prepared by the KPMG member firm in Canada
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.