Form NR6 — undertaking to file a section 216 return · affordable, fixed fee

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Form NR6 — who files it, when it is due, what late filing costs, and what we charge to prepare it. Canada (CRA). Affordable NR6 with a fixed fee agreed in writing before any work starts. Call the 24-hour helpline on +1 (416) 619-0068, or request a written quote today.

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  • 15+Years of the founder's cross-border experience
  • 18,000+Clients served across our offices in India, the USA, Canada and the UAE
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Secure a fixed quote

First we read your documents, then you get the price in writing, and only then does the work begin.

24-hour helpline: +1 (416) 619-0068
  • 15+ years of cross-border experience
  • 24-hour helpline: +1 (416) 619-0068
  • Fixed fee agreed before work starts
In 60 words

Form NR6 is a certificate or waiver: The undertaking that lets a non-resident landlord have tax withheld on NET rent rather than gross, before the year starts. Non-resident owners of Canadian rental property and their Canadian agents.

Does this bind you?

Non-resident owners of Canadian rental property and their Canadian agents.

Here is the part that decides your answer. Filed before the first rent payment of the year, it changes withholding from gross to net at source; filed late, it does nothing for the year that has already begun. The agent is on the hook if the undertaking is not honoured.

Two of the firm’s advisers at the glass desk in the Delhi office

Fixed-fee pricing for NR6 undertaking to file section 216

An NR6 turns on the net rent estimate, so the fee follows the number of Canadian rental properties and how settled their expenses are. One long-let property with a steady mortgage and management cost is quick; several properties, or a first year with no expense history to work from, takes longer to support.

Section 216 rental return — fixed-fee price
From $349

in US dollars, fixed and quoted before work starts

The elective Canadian rental return on net income, with the deductions the gross withholding ignored, plus the pre-year undertaking where the timing still allows it.
See the full fee page
Reg 105 or 102 waiver application — fixed-fee price
From $999

in US dollars, fixed and quoted before work starts

The waiver application prepared and filed before the payment or the assignment, with the treaty basis or the income-and-expense computation that supports it.
See the full fee page
Non-resident & departure filings
From $349

in US dollars, fixed and quoted before work starts

For anyone taxed by a country they do not live in — rent, pensions and investment income reaching across a border after the move.
See the fee schedule
Individual tax filing
From $349

in US dollars, fixed and quoted before work starts

Returns for people whose tax position did not stay in one country, including the years residence itself is in question.
See the fee schedule
Payroll & mobility setup
From $999

in US dollars, fixed and quoted before work starts

Payroll set up for a workforce split across countries, including the relief that stops the same salary being withheld on twice.
See the fee schedule
Foreign asset & information reporting
From $349

in US dollars, fixed and quoted before work starts

The information returns that carry the heaviest penalties — foreign accounts, foreign property, foreign affiliates — prepared from one asset list.
See the fee schedule
Corporate cross-border filing
From $999

in US dollars, fixed and quoted before work starts

Company filings where income, ownership or operations cross a border, with the related-party disclosures that come with them.
See the fee schedule
Catch-up & voluntary disclosure
From $349

in US dollars, fixed and quoted before work starts

Voluntary disclosure handled as one piece of work, from the review of what is outstanding to the returns that close it.
See the fee schedule

All published fees on one page — one page, every published fee, nothing quoted as a vague bracket.

What the reporting test actually looks at

What the application establishesLead-time constraint
The obligationThe undertaking that lets a non-resident landlord have tax withheld on NET rent rather than gross, before the year starts.
Who it bindsNon-resident owners of Canadian rental property and their Canadian agents.
Jurisdiction and authorityCanada — CRA
Category of filingCertificate or waiver — obtained before the money moves

When it is due

This is a before, not an after: the certificate or waiver has to be in hand before the payment, the closing or the remittance. Applied for afterwards, it usually cannot fix the withholding that has already happened — that becomes a refund claim instead. The date is confirmed for your year at the start of the engagement, not assumed from last year's.

What late or missed filing costs

There is often no penalty for not applying. The cost is cash: withholding computed on a gross amount rather than a net one, held by a tax authority for a year or more until a return recovers it. On a property sale or a large fee that difference is the whole point of the exercise. The practical response is not speed but order: mapping every affected year before contacting an authority is what keeps relief on the table.

What this looks like with numbers

Worked through with figures, the mechanism looks like this.

Gross withholding against a net-basis return

A non-resident receives C$43,000 in the year. Assume withholding at 25% on the gross amount, and assume deductible costs of C$32,250 against it.

ItemAmount
Gross amount receivedC$43,000
Withheld at source (assumed 25% of gross)C$10,750
Deductible costsC$32,250
Net amount actually earnedC$10,750
Tax on the net amount (assumed graduated result)C$2,473
Difference recoverable by filingC$8,277

Filing on a net basis recovers C$8,277 of the C$10,750 withheld. That difference is the entire reason the elective return exists, and it is lost by not filing. The interesting question is where your own figures fall relative to that, which is a computation rather than an opinion.

Example figures throughout, selected to make the rule visible, with rates and thresholds assumed for the demonstration. Your actual filing uses figures confirmed with the issuing authority for your tax year.

How we prepare and file it, and what it costs

Form NR6 is priced as part of the filing set it travels with, quoted in writing before any work begins. A change in scope is re-quoted rather than added to the invoice. See the NRI Indian return — do you need to declare foreign assets? for comparable engagements.

What working with us looks like

  1. 1Confirm the applicable route and the lead time before the transaction date
  2. 2Prepare the computation the authority needs to reduce the amount
  3. 3File the application and follow it through to issue
  4. 4Hand the certificate to the payer or closing agent before funds move
  • Every statutory figure in your file is verified for your own year at source.
  • A change of scope is re-quoted before the work, never added to the invoice after it.
  • A named reviewer signs off every statutory filing.

Bring last year's returns and we will tell you what is missing.

Reviewed for the 2025 and 2026 filing seasons by Udit Gupta, International Tax, Cross-Border Tax & Transfer Pricing Expert, Legal Quotient Consultants. Published as general information. For a position on your own file, call the 24-hour helpline.

Corporate tax return CRA, in practice

Read this page for corporate tax return CRA. It works through NR6 from the beginning — whether it applies to you at all, what has to be filed if it does, and what the engagement costs, priced up front.

Filed before the first rent payment of the year, it changes withholding from gross to net at source; filed late, it does nothing for the year that has already begun.

How the engagement runs, phase by phase

  1. Documents first, questions second

    We read the file before asking anything, so the questions we do ask are the ones that matter.

  2. A quote you can hold us to

    Fixed in writing against a defined scope. No hourly meter, and no revision after the fact.

  3. The order of filing decided deliberately

    Which return goes first can decide whether relief is available at all. That is planned, not discovered.

  4. Nothing filed without your sign-off

    You see the completed work, ask what you need to, and approve it before submission.

What you are actually buying with NR6 undertaking to file section 216

Factor Legal Quotient Hourly billing model
Pricing A fixed fee, agreed in writing before work starts Hourly, billed as incurred
Experience 15+ years of cross-border work, 18,000+ clients Varies by file
Both sides of the border Prepared together by one team, so relief is claimed exactly once One country at a time, reconciled later
Who reviews it A named practitioner, published on the page Whoever the queue reaches
Where the work happens Our offices in India, the USA, Canada and the UAE Whichever single office you can travel to

Four terms worth pinning down

Certificate of residency
A document from a tax authority confirming residence for a period, required by a foreign payer or authority before it will apply a treaty rate.
Grantor trust
A trust whose income is taxed to the settlor rather than to the trust or beneficiaries, because of powers or interests the settlor retained.
Emigrant
Someone who has ceased to be resident. The departure year carries a deemed disposition of most capital property, prorated credits and a property listing.
Lower deduction certificate
An Indian certificate authorising deduction at a reduced rate, applied for before the payment and the practical answer to a deduction computed on gross consideration.
NR6 undertaking to file section 216: The practitioner's note

Filed before the first rent payment of the year, it changes withholding from gross to net at source; filed late, it does nothing for the year that has already begun.

However the file develops, three things stay fixed: a written scope and fee before work begins, a named practitioner reviewing the result, and your approval before anything is filed.

Fixed fees around NR6 undertaking to file section 216

Timing and the agent arrangement are the other half of the price. The undertaking has to be in place before the year rent begins to be paid, and it binds your Canadian agent to remit on the net figure, so we usually quote it together with the rental return that must follow. The split is set out in writing.

Section 216 rental return
$349in US dollars, fixed before work starts

Covers: The elective Canadian rental return on net income, with the deductions the gross withholding ignored, plus the pre-year undertaking where the timing still allows it.

What makes it bigger: The number of properties and whether the records separate repairs from improvements. One property with an agent's statement is quick; four properties with mixed receipts is not.

See this fee page
Section 116 clearance certificate
$349in US dollars, fixed before work starts

Covers: The clearance application on a disposition of taxable Canadian property, with the cost-base evidence assembled, and the notification filed inside its own clock from closing.

What makes it bigger: Depreciable property. A rental building brings recapture into the computation and usually a different application route from a plain capital property.

See this fee page
Reg 105 or 102 waiver application
$999in US dollars, fixed before work starts

Covers: The waiver application prepared and filed before the payment or the assignment, with the treaty basis or the income-and-expense computation that supports it.

What makes it bigger: Lead time. Applied for early the waiver removes the withholding; applied for late it does nothing for the payment that has already been made.

See this fee page

What working with us on NR6 undertaking to file section 216 looks like

Late and missed years are ordinary work

An unfiled history is not a reason to wait longer. We assess what is still open and what relief the delay attracts before the first return goes in.

18,000+ clients served

Individuals, expats and corporations across India, the USA, Canada and the UAE have filed with us — 15+ years of cross-border work.

A named reviewer on every file

Every page on this site and every file we deliver says which practitioner reviewed it — a person, not a team inbox.

Residence is tested, not assumed

Where you are resident for treaty purposes is a question with a method. We work through it and write down the answer, with the facts it rests on.

The firm’s founder at his desk in the Delhi office
The team at work in the open-plan office

From first document to filed return

  • Step 1: Start with a conversation about the facts – Dates, residence, where the income arose. Fifteen minutes is usually enough to know what applies.
  • Step 2: Scope and price, both written down – You get the scope and the fixed fee together, so there is no question later about what was included.
  • Step 3: Prepared by one team, reviewed by a named practitioner – The same people see both sides of the file, and the reviewer signs their name to it.
  • Step 4: Filed, then followed through – Submission is not the end of the engagement — the queries that arrive afterwards are part of it.

Quoted up front, in writing.

Contact Us 24-hour helpline +1 (416) 619-0068

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Controlled foreign corporation rules — international tax Everything on controlled foreign corporation rules international tax, at the same depth as this page.
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Liberalised Remittance Scheme and TCS on remittances The full guide to liberalised remittance scheme and TCS on remittances, with the fee fixed before any work starts.

Who we help

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Professional services firms cross-border tax Professional services firms cross border tax — the guide, the FAQ and the fixed fee.
Tax for construction workers abroad The full guide to construction workers abroad tax, with the fee fixed before any work starts.

Where our clients live and work

United States tax for expats — country guide The full guide to United States tax for expats, with the fee fixed before any work starts.
Austria tax for expats — country guide Its own page: Austria tax for expats — mechanism, deadlines and published fees.
Denmark tax for expats — country guide Everything on Denmark tax for expats, at the same depth as this page.
Slovenia tax for expats — country guide Slovenia tax for expats — the guide, the FAQ and the fixed fee.
Peru tax for expats — country guide The full guide to Peru tax for expats, with the fee fixed before any work starts.
US–Portugal tax corridor Its own page: US Portugal tax — mechanism, deadlines and published fees.
Saudi Arabia tax for expats — country guide Everything on Saudi Arabia tax for expats, at the same depth as this page.
India tax for expats — country guide India tax for expats — the guide, the FAQ and the fixed fee.
Cyprus tax for expats — country guide The full guide to Cyprus tax for expats, with the fee fixed before any work starts.

The people on your file

Named practitioners, each with the countries and the part of a cross-border file they carry, across India, the USA, Canada and the UAE. Every page on this site says who reviewed it, and the reviewer is one of these people rather than an unnamed team.

Udit Gupta, International tax, cross-border tax and transfer pricing: USA, Canada, India and UAE, Legal Quotient Consultants
Udit Gupta
Director, International tax, cross-border tax and transfer pricing: USA, Canada, India and UAE

CA (India), CA (Malaysia)

Reviews and signs off the practice's cross-border positions, and carries final responsibility for the treaty analysis on every file that leaves any of our offices.

Udit Gupta on LinkedIn

Raghav Gupta, UAE and India international tax, cross-border tax and transfer pricing, Legal Quotient Consultants
Raghav Gupta
Director, UAE and India international tax, cross-border tax and transfer pricing

FCA (India)

Files that run between the UAE and India: residence, the treaty position, and the benchmarking and documentation behind intercompany pricing.

Raghav Gupta on LinkedIn

Anmol Mittal, USA and Canada international tax, cross-border tax and transfer pricing, Legal Quotient Consultants
Anmol Mittal
Director, USA and Canada international tax, cross-border tax and transfer pricing

CPA (Canada), CPA (USA), CA (India)

Files that have to be right on both sides of the US–Canada border at once — dual filings, streamlined catch-ups, and the foreign tax credit reconciliation between them.

Anmol Mittal on LinkedIn

Meet the whole team

Cross-border tax case studies

Case study 1

A first rental year set up before the tenant moved in

An owner who had left Canada was about to let a property and wanted withholding applied to the profit rather than the rent cheque. We identified who would act as agent, set out in writing what that role required of them, and made the undertaking before the tenancy started. We also set the expense records up from the first month so the year’s deductions would be evidenced rather than reconstructed. The engagement produced net-basis withholding from the first rent payment and a return at year end that reconciled to it.

Case study 2

A family member who did not know they were the agent

A brother collecting rent on a sibling’s behalf had been forwarding the money abroad in full for some time, unaware that a withholding obligation attached to what he was doing or that it attached to him. We established the payments made, quantified the position for the years involved, and brought the withholding and reporting up to date. The engagement produced corrected filings for the open years, a formal appointment on proper terms, and an undertaking in place for the following year so the net basis applied from its first payment.

Case study 3

Splitting the position on a property owned by two people

A couple abroad jointly owned a Canadian property and their agent had been treating the rent as belonging to one of them. Each owner’s share is their own income, so the withholding and the reporting follow the ownership rather than the bank account the rent lands in. We confirmed the ownership from title and the purchase records, split the rent and expenses accordingly, and made an undertaking for each owner. The engagement produced separate withholding arrangements and separate returns matching the registered interests.

Case study 4

A manager reworking withholding across a mixed owner list

A management company held properties for owners in and outside Canada and had been applying one approach to all of them. We established the residence position of each owner, identified which needed an undertaking for the coming year and which were already reporting on the net basis, and worked through the ones where nothing had been done. The engagement produced undertakings made ahead of the year for the owners who qualified, a corrected remittance routine, and a residence check applied whenever an owner’s details change.

Case study 5

A principal residence that became a rental after emigration

A client who had moved abroad kept their former home and let it, without appreciating that the arrangement changed what the tenant’s payments carried. We dealt with the years already run by reporting the rental income and expenses properly and settling the withholding position, then made the undertaking for the year ahead with an agent appointed on proper terms. The engagement produced filed returns for the open years, a documented expense basis carried forward, and net-basis withholding from the start of the following year.

Case study 6

Catching up after several years of gross withholding

An overseas owner had been having tax taken on the gross rent for years, on the understanding that nothing else was available, and had never filed in Canada. We reconstructed the rental results from statements, invoices and mortgage records for each open year, filed the returns that reported the profit and set the tax against what had been withheld, and put the undertaking in place for the coming year. The engagement produced filed years, a settled withholding position, and a change to the basis applied going forward.

Case study 7

An Estate Using Its Graduated Rates in Time

The favourable rate treatment an estate can access is time-limited and conditional, and it is lost by administration rather than by decision. The file identifies the window and the filings that keep it open.

Read how this one runs
Case study 8

US Estate Tax on Assets a Canadian Did Not Know Were Exposed

US shares and US real estate sit inside the US estate tax net regardless of where the owner lives. The treaty provides relief that is proportionate rather than automatic, and the calculation depends on the worldwide estate.

Read how this one runs

All case studies — every published engagement in one place.

Delivery, coverage and how we work

Browse sideways: the pages below answer the neighbouring questions.

Where the work is delivered
More coverage detail

Core International & Cross-Border Tax Services

International Tax Planning & Advisory

Strategy and compliance for income, assets and families spread across borders.

Treaty residency & tie-breaker
FATCA reporting (Form 8938)
Foreign tax credit (Form 1116)
Multi-country filing calendar
Real estate holding structures
International tax planning
Pre-immigration tax planning
Family office structures
One coordinating team: filings on every side of the border are sequenced so treaty relief and foreign tax credits are claimed once — and in the right country.
U.S. & Cross-Border Tax Returns
Form 1040 from abroad
US state non-resident returns
FBAR (FinCEN 114) filing
Form 5472 — foreign-owned US corp
FIRPTA withholding (Form 8288)
US estate tax exposure
IRS streamlined foreign offshore
PFIC reporting (Form 8621)
Dual filers: U.S. citizens in Canada and Canadians with U.S. income run two parallel systems — we prepare both, in the right order, every year.
Expat & Emigration Tax
Departure tax leaving Canada
T1161 properties on emigration
Residency planning
Step-up in cost base on arrival
Split-year residency
Employment income under a treaty
Social security totalization
Returning to Canada after years abroad
The move year is its own project: the elections and valuations filed that year decide the next decade of both countries’ returns.
Non-Resident Canadian Tax
Section 216 rental return
NR4 & NR6 withholding
Section 217 pension return
Section 116 clearance certificate
Regulation 105 waiver
Non-resident employment income
Taxable Canadian property
Part XIII withholding review
Default withholding is 25% of gross: elective returns routinely turn over-withheld rent and pensions into refunds.
Transfer Pricing & BEPS
s.247 contemporaneous documentation
Functional & risk analysis
Benchmarking study
Intercompany agreements
Country-by-country report
BEPS & Pillar Two
Permanent establishment risk
TP audit defence file
Documentation prepared with the return is the cheapest insurance in international tax; reconstructing it during an audit is the most expensive.
Cross-Border Estates & Trusts
Cross-border wills
US estate tax for non-resident aliens
Terminal return & clearance certificate
Non-resident trusts (s.94)
T1141 & T1142 trust reporting
Inheriting property abroad
Graduated rate estates
Post-mortem planning & pipeline
Wills drafted for one country routinely misfire in the other — deemed disposition here, estate tax there, credits in between.
Cross-Border Corporate Tax
Entity selection across borders
Business profits & PE
Intercompany loans & thin cap
Paying dividends to a foreign parent
Global mobility & day tracking
Debt vs equity funding
Branch or subsidiary
Cross-border M&A due diligence
Expansion raises the same four questions every time — entity, PE, repatriation, payroll. We answer them before the tax authorities do.
India Tax for NRIs & Returning Residents
NRI residency day tests
NRE, NRO & FCNR accounts
TDS on property (s.195)
Lower or nil TDS certificate
Repatriating sale proceeds
Capital gains on Indian shares
India–Canada DTAA
ITR-2 for NRIs
The deduction is taken on the sale price, not the gain — which is why an NRI property sale strands cash unless the certificate is applied for before closing.
Canadian Tax with a Foreign Element
T1135 foreign property
T1134 foreign affiliates
Departure tax
Newcomer's first return
Returning to Canada
Split-year residency
US citizens in Canada
Canada–US corridor
Residency is decided on facts, not on a form — and the year you arrive or leave is the one where the largest amounts turn on the smallest details.
UAE Tax for Expats & Their Home Country
Expat tax in the UAE
Moving to the UAE
Moving back from the UAE
UAE property purchases
Retiring in the UAE
Canada–UAE corridor
India–UAE DTAA
US–UAE corridor
A zero-tax country is only half the answer — the question that decides the bill is whether the country you came from still treats you as resident.

Industries & Client Types We Serve Worldwide

Global E-commerce & Marketplaces
Technology & SaaS
Professional Services Firms
Cross-Border Real Estate
Importers, Exporters & Manufacturers
Athletes, Artists & Entertainers
Remote Workers & Digital Nomads
Investment Funds & Holding Companies
Global E-commerce & Marketplaces

Cross-border tax for sellers shipping worldwide: marketplace withholding, foreign registrations and inventory nexus handled before they become audits.

Marketplaces withhold, remit and report in their own right, so the tax position of a single sale is decided by where the stock sat, where the buyer was and which platform collected — not by where the company is registered. We reconcile the platform's own filings against the returns before either is submitted.

  • Foreign VAT / GST / sales tax registrations
  • Marketplace withholding reviews
  • Inventory nexus & PE analysis
  • Multi-currency books reconciled
Explore E-commerce & Marketplaces
Technology & SaaS
  • Cross-border revenue sourcing & withholding
  • IP structuring with real substance
  • Equity for cross-border teams
  • U.S. expansion: entity & PE setup
Explore Technology & SaaS
Importers, Exporters & Manufacturers
  • Transfer pricing documentation (s.247)
  • Customs value vs transfer price
  • Foreign affiliate reporting (T1134)
  • Country-by-country reporting
Explore Trade & Manufacturing
Athletes, Artists & Entertainers
  • Reg 105 & U.S. CWA agreements
  • Multi-state & country calendars
  • Touring income allocation
  • Royalty & image-rights withholding
Explore Athletes & Entertainers
Remote Workers & Digital Nomads
  • Residency analysis before moving
  • Employer payroll exposure
  • Totalization & social security
  • Foreign tax credits
Explore Remote Workers
Investment Funds & Holding Companies
  • Treaty access & PPT reviews
  • FAPI & surplus computations
  • Withholding-efficient routing
  • Governance & substance
Explore Funds & Holdcos

Form NR6 — questions we are asked

Do I file Form NR6 even if no tax is owed?

Certificate or waiver obligations of this kind are generally required on the facts rather than on the tax result, so a nil position does not remove one. Non-resident owners of Canadian rental property and their Canadian agents.

What happens if I have missed Form NR6 for several years?

Missed years are dealt with as a package rather than one at a time, because the route chosen for the first year affects the relief available for the rest. We map the years and the obligations before anything is filed.

Is Form NR6 the same as the other reports I already file?

No. The undertaking that lets a non-resident landlord have tax withheld on NET rent rather than gross, before the year starts. Satisfying a different obligation, even one covering the same accounts or entity, does nothing for this one.

Can I have tax withheld on my net rent instead of the gross rent?

That is precisely what this undertaking is for. By default, tax on rent paid to a non-resident owner is calculated on the gross rent, which takes no account of mortgage interest, property tax, insurance, repairs or management fees, so the amount withheld can exceed the tax actually due on the profit. The undertaking lets withholding be applied to the net amount instead. It has to be in place before the rent starts being paid for the year, and it commits you to filing the return that reports the rental income properly at the end of it. The agent applying the withholding is part of the arrangement, not a bystander.

My agent did not file the undertaking — what happens now?

For the year already under way, withholding stays on the gross rent, because the arrangement operates prospectively and cannot be backdated over payments that have already been made. That is not the end of the matter: filing the return for the year is what reports the real rental profit and settles the difference between the tax withheld and the tax owed. The more pressing task is the year ahead, which means getting the undertaking in place before the first rent payment of that year. It is also worth establishing whether the agent understood the role they had taken on, since the exposure does not sit only with you.

Who can act as my Canadian agent for rental withholding?

Someone resident in Canada who is willing to take on the responsibility, which in practice means a property manager, a professional firm, or occasionally a family member. The point people miss is that this is not a nominal appointment. The agent is the party who has to withhold, remit on time and account for it, and who is exposed where the undertaking is not honoured. Asking a relative to collect the rent as a favour puts a real liability on them. Before appointing anyone, be clear with them about what the role involves and make sure the remittance mechanics are actually set up.

Does the undertaking mean I still have to file a Canadian return?

Yes, and that is the bargain. The undertaking is a promise to file the section 216 return for the year in exchange for withholding being applied to net rent rather than gross during it. The return reports the rental income and the expenses claimed against it, and settles the tax actually due against what was withheld. If the return is not filed, the basis on which the reduced withholding was allowed falls away, and the agent who applied it is the party left explaining the shortfall. Diarise the filing at the point the undertaking is made, not at the end of the year.

I bought a Canadian rental property after moving abroad — what first?

Settle the withholding arrangement before the first tenant pays rent, because the timing is what decides whether the whole first year runs on gross or net. That means deciding who will act as your Canadian agent, making sure they understand the obligation they are taking on, and getting the undertaking made for the year ahead of the first payment. At the same time, put the expense records in order from the outset: mortgage interest, property tax, insurance, repairs and management fees are what make the net basis worth having, and reconstructing them a year later is where owners lose deductions they were entitled to.

What happens if the undertaking is filed part way through the year?

It does nothing for the rent already paid. The arrangement changes what the agent withholds from future payments, so payments that have already gone through on the gross basis stay on it, and the correction for those comes through the return at the end of the year. This is why the timing is treated as the substantive requirement rather than an administrative one. If you are approaching the point where rent will start, that is the moment to deal with it. If the year has already begun, the sensible plan is to file for the year in due course and put the arrangement in place for the next one.

How are non-residents taxed on Canadian rental income?

By default the payer or agent withholds a flat rate on the gross rent and remits it, with no deduction for mortgage interest, taxes or repairs. Electing under section 216 lets you file on the net rental result instead, which for most properties recovers a substantial part of what was withheld; an NR6 undertaking filed before the year starts lets the withholding itself be computed on net rather than gross. See the section 216 return.

How do I get back tax withheld in another country?

By the route that country provides, and it is rarely automatic. Where an elective return is available — on rent or pension income, for instance — filing it recomputes the tax on net income and refunds the difference. Where it is not, you file a refund claim with the withholding authority, supported by evidence of your residence and entitlement to the treaty rate. Both take time, which is why fixing the rate before payment is worth more. See withholding refund and recovery.

Tax terms explained
Foreign housing exclusionForeign tax creditApportionmentNR6Excess distributionTax residencyAirdropNon-resident trustProfit level indicatorPart XIII taxRNORNewcomerWithholding certificateMaster file Browse the full A–Z glossary

Forms and situations related to Form NR6

Elsewhere in this section

All Canadian (CRA) formsGST/HST simplified registration — for non-residentsForm T2062C — section 116 notificationSubsection 45(2) & 45(3) — change-of-use electionsForm RC1 — business number registrationSection 85 — rollover on incorporationFirst-year proration schedule — Canada

Connected engagements

US person married to a non-resident spouseDeemed disposition on deathCanadian snowbird — the substantial presence testCanadian with foreign inheritancePensions and annuities — the treaty articleUS person with a foreign business

Common questions here

Who files Form NR6?What is the late filing penalty for Form NR6?
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