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denicrr

Ufile generates T2203 for single province income

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Non-resident tax return with earned income in one province (Ontario). Ufile generates a T2203 for MULTIPLE provincial allocation. CRA rejects the T2203 and applies a non-resident surtax instead of provincial tax.

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Hello denicrr,

Form T2203, "Provincial and Territorial Taxes for 2017 - Multiple Jurisdictions" is generated automatically by the program, based on provincial allocations.

For residents of Quebec, form TP-22 will also be generated by the program.

For residents of other jurisdictions who have offices in Quebec, the TP-25 will be generated by the program.

For more information on the T2203, please consult the following link:

http://www.cra-arc.gc.ca/E/pbg/tf/t2203/ 

If you earned income in provinces other than your province of residence, you must enter the percentage (%) of business income earned outside your province of residence. To do so, please follow the procedure below:

1. Select the subcategory "Income, expenses" and on the page that appears, enter your business income and expenses.

2. At the bottom of the page, go to the line "Province and percentage (%) of business income earned outside your province of residence" and in the first field on your right, enter the name of the province or territories and in the second field, enter the percentage.

3. If you have earned income in multiple provinces or territories, click the plus sign "+" icon at the far right of the line and another line will be generated.

For a T5013 partnership, enter the allocation to each province on the line "Details - province from which you derive partnership income" of the page "T5013 Statement of partnership income".

The program will carry over tax from the provinces (other than Quebec) to line 428 of the federal return as per Form T2203.

For Quebec residents, Form TP-22 will calculate the tax payable in Quebec and transfer it to line 432 of the Quebec return, while for residents of other jurisdictions, Form TP-25 will calculate the tax and carry over the amount to line 432 of the Quebec return. In addition, you must mail your Quebec tax return at 3800 rue de Marly, Québec, Quebec G1X 4A5.

Please note that according to government requirements, you will not be able to transmit your tax return via NETFILE, and Quebec residents will not be able to submit their Quebec return via NetFile. You must print your tax return as well as copies of all relevant documentation and submit them by mail.

 

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Thanks for the response. However, as I stated, I am a non-resident who works in Canada on a temporary basis. I earn income in only ONE province. Ufile automatically generates a T2203 for multiple province allocation even though I only have one T4 with income allocated to one province. On submission to the CRA, they ignore the T2203 and invoke the non-resident surtax, line 56 of Schedule 1. Which is correct?

 

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