federal surtax for non resident

[HYW]

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.

[Maggie3]

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

[HYW]

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)

[Maggie3]

Hello HYW,

Yes, UFILE can most definitely generate a  non-resident tax return. The information provided in the previous email were the instructions on how to prepare your non-resident tax return. 

[SJD]

For non-resident rental income or capital gain,  UFILE does not provide a place to enter NR4 or T2068( Non-resident tax withheld), therefore cannot generate correct tax return for the non-residents.

[Geo123]

Hello SJD,

NR4

If you received income from a Canadian source but don't have residency status in that country, you're likely to find that Canadian income tax was withheld from your payment and you will get an NR4 Form sometime in the first quarter of the following year. In most cases, your tax obligation to the Canada Revenue Agency (CRA) is over and done with once you get the NR4 Form. 
If Non-Resident part of year it goes to Immigrant or Emigrant section 
 

T2068 certificate of compliance :

T2068 form is not supported in UFile :  https://www.ufile.ca/get-started/supported-forms

Send the form that applies to your situation to CRA within the allowed time. Be sure to provide the necessary supporting documentation as outlined on Form T2062 and Form T2062A. Missing documentation will delay the issuance of your Certificate of Compliance.

If you are letting the CRA know about an actual disposition and you provide the payment to cover the resulting tax payable, or acceptable security, the CRA will issue you a certificate of compliance, Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada.

If you are letting the CRA know about a proposed disposition and you provide either the payment to cover the resulting tax payable or acceptable security, the CRA will issue you a certificate of compliance, Form T2064, Certificate - Proposed Disposition of Property by a Non-Resident of Canada.

When you actually dispose of the property, if the facts and amounts of the actual disposition differ from those you reported to the CRA for the proposed disposition, you should send to the CRA another completed form with the changes and provide the CRA with acceptable security or any additional payment to cover the increase in tax payable. The CRA will then issue you a certificate of compliance, Form T2068.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/disposing-acquiring-certain-canadian-property.html