CRA has updated the NR5 Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld.
This form is filled out for those individuals who can elect under section 217 of the Income Tax Act to file all your Canadian qualifying income on a Canadian tax return and pay the Canadian tax rate. This is only beneficial to you if the tax rate in filing the return would be lower. If that is the case, you can request to have the tax withheld at source reduced (then the money is in your pocket sooner).
The NR5 can now be filled out once every five years, but you still must file your Section 217 income tax return each year.
Qualifying income under section 217 includes:
- OAS,
- CPP,
- RRSP, RRIFs, superannuation, pension benefits, and certain retiring allowances as well as retirement compensation arrangements,
- Death benefits,
- Auto Pact benefits, and
- EI benefits and registered supplementary unemployment benefit plan payments.