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federal surtax for non resident


HYW
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I am Canadian non resident, have rental income with tax withheld, so I am doing my tax for 2022 to get some refund. I recall my accountant in the past showed me a form that in the Federal tax section, there is something called surtax of 48% (maybe on net income? I fotgot).  However, in uFile, the generated forms does not have this line anywhere. Does anyone recall this surtax and where I can find it?  Thank you.

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Hello HYW,

When you report your status as non-resident of Canada in this situation, no provincial tax return is generated within the program. To account for your non-resident status, please follow these steps:

As a non-resident for tax purposes if you are in any of the following situations:

·         You live in another country on a regular or usual basis, and you are not considered a resident of Canada there.

·         You are not resident in Canada and you are in one of the following situations:

A-   You live abroad throughout the tax year.

B-   You reside in Canada for less than 183 days during the tax year.

Note: If you receive Canadian-sourced income subject to Part XIII tax:

·         Canadian payers, including financial institutions, must withhold Part XIII tax when such income is paid or credited to you.

·         The Part XIII tax rate is generally 25% unless there is a tax treaty between Canada and your country of residence that reduces the rate to be withheld.

·         Part XII tax is non-refundable. Therefore, you are not required to file a Canadian tax return unless you want to make an election to convert it to a Part I tax, as provided for in sections 216 (rental income) or 217 (pension income) of the ITA.

1. On the "Identification" page of the Interview (first section of the left-side menu), for the question "Province of residence on December 31, 2022", select Non-resident. Click "Next" at the bottom of the page.

2.  On the "Left-side menu of the Interview tab", select "Interview setup".

3.  On the right-side of the page, check the box for "Immigrant, emigrant or non-resident taxpayer, you are a Canadian resident and your spouse immigrated to Canada in the year" and click "Next" at the bottom of the page.

4. Return to the "Left-side menu of the Interview tab", select "Current address" and, in the page on your right, enter your address.

5. Select the relevant option, either the election under Section 216 (rental income) or the election under Section 217 (pension income). In the new page that appears, enter the relevant information.  

In this case, we suggest that you consult a tax professional or contact the Canada Revenue Agency.

For more information regarding non-residents of Canada, please refer to the following link:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html

Election under section 216.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4144.html

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Hello Maggie3, yes I understand the definition of non-resident. So does it mean uFile is not able to generate the necessary info for me to file my return for year 2022? (I had used an accountant in the past and just would like to try to do it myself this time if the software supports it)

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