Section 216 Election, March 07, 2006
When a non-resident receives rental income from real property in Canada, the payor, such as the tenant or a property manager, has to withhold non-resident tax at the rate of 25% on the gross rents paid or credited to the non-resident subject to a reduced rate under a Tax Treaty. However, the non-resident may chose to file a Section 216 tax return to report the rental income on a net basis. This return must be sent to CRA within two years from the end of the year in which the rental income was paid or credited.
For further information see VTN Monthly Tax Update Seminar, Issue No. 293.
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