What are the Canadian tax obligations and entitlements for non-residents?

A non-resident of Canada, who has earned income from Canada, is subject to Canadian income tax requirements. Non-residents who are required to file a Canadian T1 return will report the income subject to these requirements, and claim available tax credits and deductions.

Recipients of many types of passive Canadian-sourced income pay a withholding tax and do not file a Canadian tax return. Non-resident recipients of rental, acting or pension income may be able to elect to file a return and pay tax on taxable income instead of paying the withholding tax on gross income. A non-resident recipient of Old Age Security income may be required to file a special return.

The T1 return for a non-resident who is required to file will generally take one of two forms:

• A T1 Income Tax and Benefit Return for the province in which the income was earned (if it is only income from employment, a business with a permanent establishment in Canada, income from a scholastic source or a gain from a sale of Canadian real estate, or if the non-resident immigrated or emigrated during the year) or;
• A T1 Income Tax and Benefit Return for Non-residents and Deemed Residents of Canada if there is only income from a scholastic source, a gain on Canadian real estate, non-employment services provided not from a permanent establishment, or if electing on pension income as already described.

Related information:

What is an NR-4 slip, and how do I enter it into TurboTax?

Who is considered a non-resident of Canada?

What is non-resident tax?