In Guide
NR4 Slip and NR4 Summary: Reporting to Canada Revenue Agency (CRA)
A property manager in Canada who is managing properties of non-resident owners need to provide NR4 Slips and submit NR4 Summary to the Canadian Revenue Agency (CRA) at the year end. The NR4 information return includes NR4 Slip and NR4 Summary.
A non-resident is subject to withholding tax on gross rental income in Canada. The withholding agent, i.e. the property manager is responsible for reconciling and providing an NR4 slip to the Non-Resident owner so you they file your taxes under section 216 of the Income Tax Act (ITA).
NR4 Summary is the summary of all NR4 slips provided by the agent to all the Non-Rresident owners by the last day of March of the following tax year. The NR4 slip must be followed by the withholding agent to report gross income and taxes withheld within the same time frame.
Thus NR4 will be issued by the Property Manager by March 31st of the following tax year. For instance, NR4 return for the year 2023 has to be issued by 31st March, 2024.
If you do not have a withholding agent, you do not have to file an NR4 slip. Instead, you have to request the CRA to issue an NR4 Proforma by writing a letter to them.
Understanding Withholding Tax
The taxation process for non-residents involves withholding tax on certain types of income. The NR4 Summary reflects the total amount of taxes withheld, giving a clear picture of the tax obligations associated with the received income. For rental income of a non-resident, the percentage of tax withholding is 25%. The property manager will deduct 25% each time a rental payment is received and pay to CRA by monthly or quarterly basis.
We wish to demonstrate a scenario for the overall tax withholding process:
Suppose Mrs. Jane is a Property Manager for Non-Resident landlords – Mr. Smith and Mrs. Lee.
In 2023, Mr. Smith had an overall rental income of CAD $2,000.00 per month. So, he has to pay 25% of the rental income, which is CAD $500.00 withholding tax to the CRA. Mrs. Jane collects the withholding tax amount and pays to CRA on behalf of Mr. Smith every month.
For Mrs. Lee with a rental income CAD $2,500.00, has to pay CAD $500.00 withholding tax to the CRA and Mrs. Jane, the property manager, pays to CRA on behalf of Mrs. Lee.
By March 31st, 2024, Mrs. Jane will submit NR4 Summary to the CRA which will show:
- Total number of NR4 slips: 2
- Total review: CAD $54,000.00 (for 12 months)
- Total withholding tax: CAD $13,500.00
Also, Mrs. Jane will issue NR4 slip to Mr. Smith and Mrs. Lee individually showing the total rental income and withholding tax for their rental property.
Always consult the latest CRA guidelines for the most accurate and up-to-date information.
NR4 Information Return Guidelines
The NR4 information return is due on or before the last day of March following the calendar year to which the information return applies, or in the case of an estate or trust, no later than 90 days after the end of the estate’s or trust’s tax year.
The threshold for mandatory electronic filing of income tax information returns for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2023
What is an NR4 Summary of Amounts Paid or Credited to Non-Residents of Canada?
An NR4 Summary of Amounts Paid or Credited to Non-Residents of Canada is a CRA specified document, that property manager submits to CRA which combines all total of all revenue and withholding tax information of all NR4 slip issued to the non-resident owners in the tax year.
It is a comprehensive overview of income paid to non-residents in Canada. It serves as a consolidated statement, summarizing various types of income and the associated taxes withheld.
Understanding the NR4 Summary is vital for both payers and recipients, ensuring accurate reporting and compliance with Canadian tax regulations.
The NR4 Summary records the total amounts reported on NR4 slips and on Form NR601, Non-Resident Ownership Certificate – Withholding Tax, and Form NR602, Non-Resident Ownership Certificate – No Withholding Tax.
Significance for Non-Residents
Non-residents receiving income from Canadian sources must pay close attention to the NR4 Slip. This document outlines the taxes withheld on their income, affecting their overall tax liability. Ignoring or misunderstanding the NR4 Slip could lead to unintended consequences, including penalties for non-compliance.
Filling out the NR4 Summary of Amounts Paid or Credited to Non-Residents of Canada
Year-end or tax year-end
Enter the four digits of the calendar year to which the information return relates or the applicable tax year-end.
Line 1 - Non-resident account number
Enter the account number under which you remit your non-resident tax deductions to the CRA. This number has to match the account number shown on the remittance part of Form NR76, Non-Resident Tax Statement of Account.
Name and address of payer or agent
Enter the name and address of property manager. Your name has to match the one shown on the remittance part of Form NR76, Non-Resident Tax Statement of Account.
Line 88 - Total number of NR4 slips filed
Enter the total number of NR4 slip you are issuing to non-resident owners.
Lines 18 and 22 - Amounts reported on NR4 slips
Add the amounts in boxes 16 and 26 from all slips. Enter the total on line 18.
Add the amounts in boxes 17 and 27 from all slips. Enter the total on line 22.
Lines 26 and 28 - Amounts reported on forms NR601 or NR602
The gross income reported on forms NR601 and NR602 should be included. Line 26 should contain the total.
The amounts of non-resident taxes you declared on form NR601 should be added. Put the total in line 28.
Line 30 - Total
Add the amounts reported on lines 18 and 26. Enter the total on line 30.
Line 32 - Total non-resident tax withheld
Add the amounts reported on lines 22 and 28. Enter the total on line 32.
Line 82 - Minus: Total remittances for the year
Enter the total you remitted to your non-resident tax account for the applicable tax year.
Difference
Line 82 is subtracted from Line 32. Fill in the designated space with the difference. Enter “NIL” on line 86 if there is no difference between the total amount of non-resident tax withheld and the remittances for the year.
In general, if the difference is $2 or less, the CRA does not charge or reimburse.
Line 84 - Overpayment
Enter the difference on line 84 if the amount on line 82 exceeds the amount on line 32 (and you do not need to file a separate return for this account number). Attach or send a note indicating the reason for the overpayment and whether you want the CRA to transfer this amount to another account or another year, or refund the overpayment to you.
Direct deposit is available for refunds of non-resident tax. To register, send the CRA a completed Form NR304, Direct Deposit Request for Non-Resident Account Holders and NR7-R Refund Applicants. For more information, go to Direct Deposit.
Line 86 - Balance due
If the amount on line 32 is more than the amount on line 82, enter the difference on line 86. If you have a balance due, attach a payment to your NR4 Summary or send your payment for the balance owing separately. If you remit your payment late, any balance due may be assessed penalties and interest at the prescribed rate.
To help the CRA process your payment correctly, write your non-resident account number on it.
Lines 76 and 78 - Person to contact about this return
Enter the name and phone number of a person the CRA can contact for more information.
Certification
An authorized officer has to sign the NR4 Summary to confirm that the information is correct and complete.
Understanding NR4 Slips - Statement of Amounts Paid or Credited to Non-Residents of Canada
NR4 Slip – Statement of Amounts Paid or Credited to Non-Residents of Canada is a legal document given to the Non-Resident landlord that show the summary of total rental revenue and withholding tax of the immediate tax year.
Each slip provides a breakdown of the type of income, amount paid or credited, withholding tax rates, and relevant dates. It provides information about specific types of income earned by non-resident owners. Non-resident owners should carefully review this slip to ensure the correct amounts are reported to the Canada Revenue Agency (CRA) by their property manager.
When to Fill out the NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada Slip
Property manager must complete an NR4 slip for each non-resident to whom you’ve paid or credited amounts outlined in Part XIII of the Income Tax Act (ITA). This applies even if the tax deduction is not mandatory. Refer to Appendix B below for a breakdown of income types. You can also learn more about NR4 Return and Appendix B in Guide T 4061.
Additionally, if, under Part I or Part XIII of the ITA, you have paid or credited amounts, you must fill out an NR4 slip. This obligation persists whether or not tax was withheld on these amounts.
Exemptions under the ITA or a bilateral tax treaty may excuse tax withholding, but completing an NR4 slip remains mandatory.
Here is a table to help you decide if you need to file an NR4 slip
based on the total gross income and the tax withheld
| Total gross income paid or credited | Tax | Report amounts on NR4 slip |
|---|---|---|
| Less than $50 | Tax withheld | Yes |
| Less than $50 | No tax withheld | No |
| $50 or more | Tax withheld or no tax withheld | Yes |
Filling out the NR4 Slip
Box 10 - Year
Enter the four digits of the calendar year in which you made the payment to the recipient. For estates and trusts, enter the four digits of the tax year-end in which they made the payment to the recipient.
Box 11 - Recipient Code
Enter the appropriate code from the following list:
- individual
- joint account
- corporation
- other (for example, association, trust, including fiduciary-trustee, nominee, estate, or partnership)
- government, government enterprise, or international organizations and agencies prescribed by regulation
Note: The prescribed international organizations and agencies are:
- Bank for International Settlements
- European Fund
- International Bank for Reconstruction and Development
- International Development Association
- International Finance Corporation
- International Monetary Fund
- European Bank for Reconstruction and Development
Box 12 - Country Code for Tax Purposes
From the list in Appendix A below, enter the three-letter code for the country in which the recipient is a resident for tax purposes. Only use the codes listed in Appendix A. You can also more information for NR4 Return and Appendix A in Guide T 4061.
Generally, the recipient’s country for tax and mailing purposes will be the same. However, if they are different, you must always enter the country of residency for tax purposes.
Payer or Remitter Identification Number
Enter the number your organization assigns to non-resident payees.
For example, if you are a financial institution, enter the number assigned to your client (such as an annuitant number or client number) in this box. If you do not use such a number, leave this area blank.
Box 13 - Foreign or Canadian Tax Identification Number
Enter the identification number assigned to the non-resident for tax purposes by their country of residence. If a non-resident does not give you an identification number, ask if a Canadian social insurance number (SIN) is available and enter the number here.
Note – If an identification number is not available, ask the non-resident if they have been assigned an individual tax number (ITN), a temporary tax number (TTN) or a Canadian payroll account number (15 characters) and enter it here. If no number is available, leave the area blank.
Box 14 or 24 - Income code
Enter the appropriate numeric income code from the list in Appendix B below. For example, enter income code “13” to identify a lump-sum payment from all rental income from all properties of a non-resident.
Use the proper two-digit code. For example, copyright royalties should be reported using “05” not “5”
Since January 1, 2009, Tax-Free Savings Account (TFSA) amounts paid during the exempt period to a non-resident beneficiary are subject to Part XIII tax to the extent they exceed the amounts designated by the trust.
The exempt period is from the date of death of the holder of a TFSA governed by a trust to the end of the year following the year of death or the date the trust ceases to exist, if earlier.
For more information, see RC4477, Tax Free Savings Account (TFSA) Guide for Issuers.
Box 15 or 25 - Currency code
All income and withholding tax should be reported in Canadian funds. Enter currency code CAD. If you cannot report the amounts in Canadian funds, enter the three-letter code of the currency for the amounts reported as gross income (box 16 or 26) and tax withheld (box 17 or 27). See Appendix D of Guide T4061 for a list of the currency codes.
Box 16 or 26 - Gross income
Enter in Canadian funds the gross income, for the income code, you paid or credited to non-residents of Canada if:
- the amount paid or credited, or deemed paid, or credited under Part I or Part XIII of the Income Tax Act is $50 or more; or
- any amount under Part XIII has been withheld.
Box 17 to 27 - Non-Resident Tax Withheld
Enter in Canadian funds the amount of non-resident tax you withheld. If you cannot convert foreign funds to Canadian currency, complete box 15 or 25 (Currency code), in order to clearly indicate on the NR4 slip the currency of the tax you withheld. This will help us and the non-resident.
Note – For box 16 or 26 – (Gross income), and box 17 or 27 – (Non-resident tax withheld), individuals and corporations report income based on the calendar year and estates and trusts report income based on the fiscal year end.
Box 18 or 28 - Exemption Code
Enter the exemption code that applies from the list in Appendix C below. You can also more information for NR4 Return and Appendix C in Guide T 4061.
This code gives the authority under the Income Tax Act or a bilateral tax treaty to exempt the amount from Part XIII withholding tax, or to apply a reduced withholding rate, as a result of certain elections.
If no tax is withheld, the correct exemption code must be included.
Non-Resident Recipient's Name and Address
If you are preparing the NR4 slip for an individual, enter their last name, followed by the first name and initial. Otherwise, enter the name of the corporation, organization, association, trust, or institution.
If it applies, enter the second recipient’s name (if this is not a joint account or there is only one recipient, leave this line blank).
Note – Do not enter the name of the secretary-treasurer or any other individual who has signing authority.
Enter the recipient’s full mailing address as follows:
- Lines 1 and 2 – Enter the street address, (civic number, street name, and post office box number or rural route number).
- Line 3 – For Canadian addresses, enter the city, two-letter provincial or territorial code (as found in Appendix E of Guide T4061), and the postal code.
For U.S. addresses enter the city, two-letter state, territory or possession code (as found in Appendix E), and the zip code.
For addresses outside Canada and the United States enter the postal code and then the city name.
- Line 4 – Enter the full country name (if Canada, leave blank but enter CAN in the country code box).
- Country code – Enter the three-letter country code from Appendix A below or from Guide T4061 that corresponds to the country you indicated on line 4. This country code is for mailing purposes only.
- Name and address of agent or payer
Enter your full name and address.
- Non-resident account number
Enter the account number under which you remit your non-resident tax deductions to us. This number has to match the account number shown on the remittance part of Form NR76, Non-Resident Tax – Statement of Account.
Tips for Filling out NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada Slip
Follow the instructions below carefully. The Canada Revenue Agency (CRA) may have to return incorrectly filled-out NR4 slips to you for corrections.
- Ensure that the NR4 slips can be read easily. Type your information slips or have them printed by a machine to aid the CRA in processing your returns promptly and accurately.
- Never alter the box heads in any way.
- Every time a non-resident changes their country of residence for tax purposes during the year, separate NR4 slips must be prepared.
- When reporting gross income (box 16 or 26), use Canadian funds
- When reporting the tax withheld (box 17 or 27), use Canadian funds
- When reporting partially exempt income, use separate lines.
For instance, record the taxable income on one line with the withholding tax and the exempt income on another line with the appropriate exemption number indicated in box 18 or 28 if you are paying interest to a client and a portion of the gross income is exempt from Part XIII tax.
- Sequentially report income on line 1 before proceeding to report income on line 2.
Distributing the NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada Slip
You must provide the recipients with their NR4 slips on or before the final day of March following the applicable calendar year. Deliver the copies to estates and trusts no later than ninety days after the end of the relevant tax year.
The CRA may impose a penalty on you if you don’t. In cases where NR4 slips are not given to recipients, there will be a $25 daily penalty, with a $100 minimum and a $2,500 maximum.
Print the two NR4 slips that you have to give to each recipient on one sheet.
Give each of your recipients their NR4 slip in one of the following ways:
- You may send one copy electronically (by email, for example) if you have the recipient’s written approval, either in paper or electronic format, to send the NR4 slip electronically,
- Two copies, mailed to the last known address of the recipient; or
Note: You might want to retain the copies in the recipient’s file if the NR4 slip copies are not deliverable. Never send a recipient’s NR4 slip copies to an address you know is incorrect if that is how you have them listed.
Keep a record of the attempts you made to obtain the proper address and the reason the copies were not distributed. Store this document in the recipient’s file together with the copies of the NR4 slips.
- Two copies, delivered in person.
Keep the information from the NR4 slips in your records.
Appendix A – Country Codes for the NR4 Slip
Enter the appropriate three-letter code in box 12 of the NR4 slip. Please note that these codes should also be used in the address portion of the NR4 slip.
Three-letter codes and related countries
| Codes | Countries |
|---|---|
| AFG | Afghanistan |
| ALA | Åland Islands |
| ALB | Albania |
| DZA | Algeria |
| ASM | American Samoa |
| AND | Andorra |
| AGO | Angola |
| AIA | Anguilla |
| ATA | Antarctica |
| ATG | Antigua and Barbuda |
| ARG | Argentina |
| ARM | Armenia |
| ABW | Aruba |
| AUS | Australia |
| AUT | Austria |
| AZE | Azerbaijan |
| BHS | Bahamas (the) |
| BHR | Bahrain |
| BGD | Bangladesh |
| BRB | Barbados |
| BLR | Belarus |
| BEL | Belgium |
| BLZ | Belize |
| BEN | Benin |
| BMU | Bermuda |
| BTN | Bhutan |
| BOL | Bolivia (Plurinational State of) |
| BES | Bonaire, Sint Eustatius and Saba |
| BIH | Bosnia and Herzegovina |
| BWA | Botswana |
| BVT | Bouvet Island |
| BRA | Brazil |
| IOT | British Indian Ocean Territory (the) |
| BRN | Brunei Darussalam |
| BGR | Bulgaria |
| BFA | Burkina Faso (Upper Volta) |
| BDI | Burundi |
| KHM | Cambodia (Kampuchea) |
| CMR | Cameroon |
| CPV | Cabo Verde |
| CYM | Cayman Islands (the) |
| CAF | Central African Republic (the) |
| TCD | Chad |
| CHL | Chile |
| CHN | China (mainland) |
| CXR | Christmas Island (Australia) |
| CCK | Cocos (Keeling) Islands (the) |
| COL | Colombia |
| COM | Comoros (the) |
| COG | Congo (the) |
| COD | Congo (the Democratic Republic of the) (formerly Zaire) |
| COK | Cook Islands (the) |
| CRI | Costa Rica |
| CIV | Côte d'Ivoire (Ivory Coast) |
| HRV | Croatia |
| CUB | Cuba |
| CUW | Curaçao |
| CYP | Cyprus |
| CZE | Czech Republic (the) |
| DNK | Denmark |
| DJI | Djibouti |
| DMA | Dominica |
| DOM | Dominican Republic (the) |
| ECU | Ecuador |
| EGY | Egypt |
| SLV | El Salvador |
| GNQ | Equatorial Guinea |
| ERI | Eritrea |
| EST | Estonia |
| SWZ | Eswatini |
| ETH | Ethiopia |
| FLK | Falkland Islands (the) (Malvinas) |
| FRO | Faroe Islands (the) |
| FJI | Fiji |
| FIN | Finland |
| FRA | France |
| GUF | French Guiana |
| PYF | French Polynesia |
| ATF | French Southern Territories (the) |
| GAB | Gabon |
| GMB | Gambia (the) |
| GEO | Georgia |
| DEU | Germany |
| GHA | Ghana |
| GIB | Gibraltar |
| GRC | Greece |
| GRL | Greenland |
| GRD | Grenada |
| GLP | Guadeloupe |
| GUM | Guam |
| GTM | Guatemala |
| GGY | Guernsey |
| GIN | Guinea |
| GNB | Guinea-Bissau |
| GUY | Guyana |
| HTI | Haiti |
| HMD | Heard Island and McDonald Islands |
| VAT | Holy See (the) |
| HND | Honduras |
| HKG | Hong Kong |
| HUN | Hungary |
| ISL | Iceland |
| IND | India |
| IDN | Indonesia |
| IRN | Iran (Islamic Republic of) |
| IRQ | Iraq |
| IRL | Ireland |
| IMN | Isle of Man |
| ISR | Israel |
| ITA | Italy |
| JAM | Jamaica |
| JPN | Japan |
| JEY | Jersey |
| JOR | Jordan |
| KAZ | Kazakhstan |
| KEN | Kenya |
| KIR | Kiribati |
| PRK | Korea (the Democratic People's Republic of) (North) |
| KOR | Korea (the Republic of) (South) |
| KWT | Kuwait |
| KGZ | Kyrgyzstan |
| LAO | Lao People's Democratic Republic (the) |
| LVA | Latvia |
| LBN | Lebanon |
| LSO | Lesotho |
| LBR | Liberia |
| LBY | Libya |
| LIE | Liechtenstein |
| LTU | Lithuania |
| LUX | Luxembourg |
| MAC | Macao |
| MDG | Madagascar |
| MWI | Malawi |
| MYS | Malaysia |
| MDV | Maldives |
| MLI | Mali |
| MLT | Malta |
| MHL | Marshall Islands (the) |
| MTQ | Martinique |
| MRT | Mauritania |
| MUS | Mauritius |
| MYT | Mayotte |
| MEX | Mexico |
| FSM | Micronesia (Federated States of) |
| MDA | Moldova (the Republic of) |
| MCO | Monaco |
| MNG | Mongolia |
| MNE | Montenegro |
| MSR | Montserrat |
| MAR | Morocco |
| MOZ | Mozambique |
| MMR | Myanmar (Burma) |
| NAM | Namibia |
| NRU | Nauru |
| NPL | Nepal |
| NLD | Netherlands (the) |
| NCL | New Caledonia |
| NZL | New Zealand |
| NIC | Nicaragua |
| NER | Niger (the) |
| NGA | Nigeria |
| NIU | Niue |
| NFK | Norfolk Island |
| MKD | North Macedonia |
| GBR | Northern Ireland and the United Kingdom of Great Britain |
| MNP | Northern Mariana Islands (the) |
| NOR | Norway |
| OMN | Oman |
| PAK | Pakistan |
| PLW | Palau |
| PAN | Panama |
| PNG | Papua New Guinea |
| PRY | Paraguay |
| PER | Peru |
| PHL | Philippines (the) |
| PCN | Pitcairn |
| POL | Poland |
| PRT | Portugal |
| PRI | Puerto Rico |
| QAT | Qatar |
| REU | Réunion |
| ROU | Romania |
| RUS | Russian Federation (the) |
| RWA | Rwanda |
| BLM | Saint Barthélemy |
| SHN | Saint Helena, Ascension and Tristan da Cunha |
| KNA | Saint Kitts and Nevis |
| LCA | Saint Lucia |
| MAF | Saint Martin (French part) |
| SPM | Saint Pierre and Miquelon |
| VCT | Saint Vincent and the Grenadines |
| WSM | Samoa |
| SMR | San Marino |
| STP | Sao Tome and Principe |
| SAU | Saudi Arabia |
| SEN | Senegal |
| SRB | Serbia |
| SYC | Seychelles |
| SLE | Sierra Leone |
| SGP | Singapore |
| SXM | Saint Maarten (Dutch part) |
| SVK | Slovakia (Slovak Republic) |
| SVN | Slovenia |
| SLB | Solomon Islands |
| SOM | Somalia |
| ZAF | South Africa |
| SGS | South Georgia and the South Sandwich Islands |
| SSD | South Sudan |
| ESP | Spain |
| LKA | Sri Lanka |
| SDN | Sudan (the) |
| SUR | Suriname |
| SJM | Svalbard and Jan Mayen |
| SWE | Sweden |
| CHE | Switzerland |
| SYR | Syrian Arab Republic (the) |
| TWN | Taiwan |
| TJK | Tajikistan |
| TZA | Tanzania, the United Republic of |
| THA | Thailand |
| TLS | Timor-Leste |
| TGO | Togo |
| TKL | Tokelau |
| TON | Tonga |
| TTO | Trinidad and Tobago |
| TUN | Tunisia |
| TUR | Türkiye |
| TKM | Turkmenistan |
| TCA | Turks and Caicos Islands (the) |
| TUV | Tuvalu |
| UGA | Uganda |
| UKR | Ukraine |
| ARE | United Arab Emirates (the) |
| GBR | United Kingdom of Great Britain and Northern Ireland (the) |
| USA | United States of America (the) |
| UMI | United States Minor Outlying Islands (the) |
| URY | Uruguay |
| UZB | Uzbekistan |
| VUT | Vanuatu (New Hebrides) |
| VEN | Venezuela (Bolivarian Republic of) |
| VNM | Viet Nam |
| VGB | Virgin Islands (British) |
| VIR | Virgin Islands (U.S.) |
| WLF | Wallis and Futuna |
| PSE | West Bank and Gaza Strip |
| ESH | Western Sahara |
| YEM | Yemen |
| ZMB | Zambia |
| ZWE | Zimbabwe |
Appendix B – Income codes for NR4 Slip
Enter the appropriate income code in box 14 or 24 of the NR4 slip. Use the correct two-digit code. For example, for copyright royalties, use code “05”, not “5.”
Pension and similar payments
Deferred profit sharing plans (DPSP)
| Income Code | Description |
|---|---|
| 7 | DPSP – Periodic payments |
| 31 | DPSP – Lump-sum payments |
Registered disability savings plan (RDSP)
| Income Code | Description |
|---|---|
| 63 | RDSP |
First Home Savings Account (FHSA)
| Income Code | Description |
|---|---|
| 74 | Taxable FHSA withdrawals |
| 75 | FHSA beneficiary distributions received |
| 76 | Amount deemed received on FHSA cessation |
Tax-Free Savings Account (TFSA)
| Income Code | Description |
|---|---|
| 64 | TFSA – taxable amount |
Pooled registered pension plan (PRPP)
| Income Code | Description |
|---|---|
| 65 | PRPP – Periodic payments |
| 66 | PRPP – Lump-sum payments |
Registered retirement income funds (RRIF)
| Income Code | Description |
|---|---|
| 26 | RRIF – Periodic payments Footnote1 |
| 27 | RRIF – Lump-sum payments Footnote1 |
Footnote 1
For information about RRIF-periodic and lump-sum payments to a non-resident, contact the Canada Revenue Agency at 1-855-284-5946 from anywhere in Canada or the United States or at 613-940-8499 from outside Canada and the United States
Registered retirement savings plans (RRSP)
| Income Code | Description |
|---|---|
| 28 | RRSP – Periodic payments |
| 29 | RRSP – Refund of premiums |
| 30 | RRSP – Refund of excess amounts |
| 32 | RRSP – Amounts deemed received on deregistration |
| 33 | RRSP – Amounts deemed received on death |
| 43 | RRSP – Lump-sum payments |
Superannuation or pension benefits
| Income Code | Description |
|---|---|
| 39 | Superannuation or pension benefits – Periodic payments |
| 40 | Superannuation or pension benefits – Lump-sum payments |
Other Payments
| Income Code | Description |
|---|---|
| 2 | Other – Periodic payments |
| 3 | Other – Lump-sum payments |
| 4 | Automotive products – Assistance benefits |
| 6 | Death benefit (other than Canada Pension Plan or Quebec Pension Plan) |
| 14 | Income-averaging annuity contracts – Report all benefits including lump-sum payments on proceeds of disposition of these contracts |
| 34 | Registered supplementary unemployment benefits |
| 36 | Retiring allowance |
| 37 | Retirement compensation arrangements |
| 41 | Textile, clothing, and leather goods – Assistance and superannuation or pension benefits |
Social security benefits
| Income Code | Description |
|---|---|
| 44 | Old Age Security payments (regular benefits) aids Footnote2 |
| 45 | Net federal (guaranteed income) supplement Footnote2 |
| 46 | Canada Pension Plan (CPP) benefits |
| 47 | Canada Pension Plan (CPP) – Disability benefits |
| 48 | CPP death benefits – Lump-sum payments |
| 49 | Quebec Pension Plan (QPP) benefits |
| 50 | Quebec Pension Plan (QPP) – Disability benefits |
| 51 | QPP death benefits – Lump-sum payments |
| 86 | One-time payment for older seniors |
| 88 | Old Age Security recovery tax |
Footnote 2
Old Age Security benefits and net federal supplements are reported on an NR4 (OAS) slip.
Mutual fund investment distributions
Taxable Canadian property (TCP)
| Income Code | Description |
|---|---|
| 57 | TCP gains distribution – Capital gains dividends paid by mutual fund corporations |
| 58 | TCP gains distribution – Capital gains distributions made by mutual fund trusts |
Assessable distributions
| Income Code | Description |
|---|---|
| 59 | Assessable distributions paid or credited by a Canadian property mutual fund investment corporation |
| 60 | Assessable distributions paid or credited by a Canadian property mutual fund investment trust |
Interest and dividends
Interest
| Income Code | Description |
|---|---|
| 61 | Arm's length interest payments |
| 62 | Non-arm's length interest payments |
Dividends
| Income Code | Description |
|---|---|
| 8 | Dividends paid by Canadian subsidiaries to foreign parent corporations |
| 9 | Dividends – Other |
| 85 | Dividend compensation payments made under a security lending arrangement (SLA) |
Rents, royalties, and franchise payments
| Income Code | Description |
|---|---|
| 5 | Copyright royalties |
| 12 | Franchise and similar rights |
| 13 | Gross rents from real property |
| 23 | Natural resource royalties |
| 35 | Research and development royalties |
| 38 | Royalties and similar payments for the use of, or the right to use, other properties |
| 52 | Timber royalties |
Miscellaneous payments
| Income Code | Description |
|---|---|
| 10 | Energy conversion grants |
| 11 | Estate and trust income |
| 21 | Management or administrative fee or charge |
| 22 | Motion picture films and films or videotape, etc. for TV use |
| 24 | Registered education savings plan |
| 53 | Eligible funeral arrangements |
| 54 | Film and video acting services |
| 55 | Film and video acting services – Contingent compensation |
| 56 | Film and video acting services – Residuals |
Appendix C – Exemption codes for NR4 Slip
Exemptions applicable to dividends only
| Code | Description | References |
|---|---|---|
| M | Capital gains dividends and dividends from a foreign business corporation: Exemption for capital gains dividends described in any of subsections 130.1(4), 131(1), or 133(7.1) of the Income Tax Act. This exemption does not apply to the portion of a capital gains dividend described in subsection 131(1) that represents a taxable Canadian property (TCP) gains distribution. The TCP gains distribution is considered a taxable dividend to which withholding tax applies. Exemption for certain dividends paid for a share of the capital stock of a foreign business corporation. Exemption code M is invalid if the dividend is reflected on a T3 as in that case it is considered trust income. Use code S if applicable. | Income Tax Act, subsections 212(2) and 131(5.1) Income Tax Act, section 213 |
Exemptions applicable to dividends only
| Code | Description | References |
|---|---|---|
| G | Copyright royalties: Exemption for a royalty or a similar payment, if the payment is made on, or for, a copyright for the production or reproduction of any literary, dramatic, musical, or artistic work. | Income Tax Act, subparagraph 212(1)(d)(vi) |
| N | Certain rental and leasing payments: Exemption for payments made under certain leasing arrangements involving railway rolling stock, corporeal property used outside Canada, and aircraft. | Income Tax Act, subparagraphs 212(1)(d)(vii), 212(1)(d)(ix) and 212(1)(d)(xi) |
| O | Cost-sharing arrangements: Exemption for payments made under a bona fide cost-sharing arrangement for research and development expenses. | Income Tax Act, subparagraph 212(1)(d)(viii) |
Authorization to apply a reduced rate of withholding
Exemption codes to use when an authorization to apply a reduced rate of withholding was granted
| Code | Description | References |
|---|---|---|
| H | Rents from real property and timber royalties: A reduction was approved by the Canada Revenue Agency allowing Canadian agents who receive rent from real property or timber royalties for non-residents to withhold tax on the net rental income rather than on the gross rental income. | Income Tax Act, section 216 |
| J | Pension and similar payments, and acting services: A reduction was approved by the Canada Revenue Agency allowing payers to withhold tax at a lower rate on certain pensions and similar payments, or on payments made for the acting services of a non-resident actor in a film or video production. | Income Tax Act, section 217 and subsection 212(5.3) |
Exemptions applicable to management or administration fees or charges
| Code | Description | References |
|---|---|---|
| P | Management or administration fees or charges: Exemption under a tax convention between Canada and another country (business profits article) or in the Income Tax Act on management or administration fees or charges. | Income Tax Act, subsection 212(4) or business profits article of a tax convention signed by Canada |
Exemptions for payments made to non-resident tax-exempt persons
| Code | Description | References |
|---|---|---|
| I | Article XXI of the Canada − United States Tax Convention: Exemption for organizations that have received a letter of exemption under Article XXI of the Canada – United States Tax Convention. The letter must be in force when the amount is paid or credited. | Current version of Information Circular IC77-16R4, Non-Resident Income Tax |
Other exemptions
| Code | Description | References |
|---|---|---|
| Q | Payments to a non-resident that carries on a business in Canada through a permanent establishment in Canada: Exemption under a tax convention between Canada and another country on dividend, interest, and royalty payments. For example, under the Canada – United States Tax Convention, these payments may be exempt if the beneficial owner of the payments carries on a business in Canada through a permanent establishment in Canada, or performs independent personal services from a fixed base in Canada, and if the holding, debt-claim, or property or right for which the payment is made is effectively connected with the permanent establishment or fixed base. | Dividend, interest, or royalties article of a tax convention signed by Canada |
| R | Payments made for a business carried on in a country other than Canada: Exemption on certain arm’s length royalty payments to the extent that the amounts are deductible in calculating the income of the payer under Part I from a business carried on by the payer in a country other than Canada. Exemption under a tax convention between Canada and another country (for example, under the Canada – United States Tax Convention) if the payer has, in a country other than Canada, a permanent establishment or fixed base in connection with which the obligation to pay the interest or royalty was incurred, and the payments are deducted against the income of the permanent establishment or fixed base. | Income Tax Act, subparagraph 212(1)(d)(x) Interest and royalties article of a tax convention signed by Canada |
| S | Other exempting provisions – Income Tax Act: Exemption from withholding tax as a result of other exempting provisions in the Income Tax Act, other than those given above in code G, M through P, R, and U. | |
| T | Other exempting provisions: Exemption from withholding tax as a result of other exempting provisions of a tax convention, other than those given above in codes I, and P through R. | |
| U | Exemption from withholding tax on payments of certain reasonable travel expenses and per diem amounts reimbursed to a non-resident actor. | Income Tax Act, subsection 212(5.1) |
| W | Dividend compensation payments made under a Securities Lending Arrangement (SLA): A compensation payment made by a Canadian resident to a non-resident under a SLA, if the SLA is a “fully collateralized arrangement” and the lent security is a foreign share (shares issued by non-resident corporations). | Income Tax Act, subsection 212(2.1) |
Appendix D – Currency Codes for NR4 Slips
Use the correct three-letter code in box 15 or 25 of the NR4 slips. The amounts entered for gross income and tax withheld are reported in the same currency as stated by the currency code. The CRA will only convert amounts reported in foreign currency to Canadian funds based on the average annual exchange rate published by the Bank of Canada.
Most frequently used currencies
| Currency | Currency code |
|---|---|
| Canadian dollar | CAD |
| United States dollar Footnote3 | USD |
| Australian dollar Footnote3 | AUD |
| European euro Footnote3 | EUR |
| Hong Kong dollar | HKD |
| United Kingdom pound sterling Footnote3 | GBP |
Footnote 3
This currency is also used in other countries. For more information, refer to the International Organization for Standardization ISO 4217 codes called Codes for the representation of currencies.
Other currencies
| Currency | Currency code |
|---|---|
| Brazilian real | BRL |
| Chinese renminbi | CNY |
| Indian rupee Footnote4 | INR |
| Indonesian rupiah | IDR |
| Japanese yen | JPY |
| Mexican peso | MXN |
| New Zealand dollar Footnote4 | NZD |
| Norwegian krone Footnote4 | NOK |
| Peruvian nuevo sol | PEN |
| Russian ruble | RUB |
| Saudi riyal | SAR |
| Singapore dollar | SGD |
| South African rand | ZAR |
| South Korean won | KRW |
| Swedish krona | SEK |
| Swiss franc Footnote4 | CHF |
| Taiwanese dollar | TWD |
| Turkish lira | TRY |
Footnote 4
This currency is also used in other countries. For more information, refer to the International Organization for Standardization ISO 4217 codes called Codes for the representation of currencies.
Appendix E – Canadian province or territory or U.S. state, territory or possession codes
Use the following abbreviations when you enter the Canadian province or territory, or U.S. state, territory or possession on the slip and summary.
Canada – Province or Territory Code
| Province or territory | Code |
|---|---|
| Alberta | AB |
| British Columbia | BC |
| Manitoba | MB |
| New Brunswick | NB |
| Newfoundland and Labrador | NL |
| Northwest Territories | NT |
| Nova Scotia | NS |
| Nunavut | NU |
| Ontario | ON |
| Prince Edward Island | PE |
| Québec | QC |
| Saskatchewan | SK |
| Yukon | YT |
United States – State, Territory or Possession Code
| State, territory or possession | Code |
|---|---|
| Alabama | AL |
| Alaska | AK |
| American Samoa | AS |
| Arizona | AZ |
| Arkansas | AR |
| Armed Forces Americas (except Canada) | AA |
| Armed Forces Africa Armed Forces Canada Armed Forces Europe Armed Forces Middle East | AE |
| Armed Forces Pacific | AP |
| California | CA |
| Colorado | CO |
| Connecticut | CT |
| Delaware | DE |
| District of Columbia | DC |
| Florida | FL |
| Georgia | GA |
| Guam | GU |
| Hawaii | HI |
| Idaho | ID |
| Illinois | IL |
| Indiana | IN |
| Iowa | IA |
| Kansas | KS |
| Kentucky | KY |
| Louisiana | LA |
| Maine | ME |
| Marshall Islands | MH |
| Maryland | MD |
| Massachusetts | MA |
| Michigan | MI |
| Micronesia (Federated States of) | FM |
| Minnesota | MN |
| Minor Outlying Islands | UM |
| Mississippi | MS |
| Missouri | MO |
| Montana | MT |
| Nebraska | NE |
| Nevada | NV |
| New Hampshire | NH |
| New Jersey | NJ |
| New Mexico | NM |
| New York | NY |
| North Carolina | NC |
| North Dakota | ND |
| Northern Mariana Islands | MP |
| Ohio | OH |
| Oklahoma | OK |
| Oregon | OR |
| Palau | PW |
| Pennsylvania | PA |
| Puerto Rico | PR |
| Rhode Island | RI |
| South Carolina | SC |
| South Dakota | SD |
| Tennessee | TN |
| Texas | TX |
| Utah | UT |
| Vermont | VT |
| Virgin Islands | VI |
| Virginia | VA |
| Washington | WA |
| West Virginia | WV |
| Wisconsin | WI |
| Wyoming | WY |
Frequently Asked Questions (FAQs)
The NR4 Statement details amounts paid or credited to non-residents of Canada, ensuring transparent financial reporting.
The NR4 Summary provides a concise overview of financial dealings with non-residents.
NR4 Slips break down details of financial transactions, including income types and tax withheld for non-residents.
Yes, accurate NR4 reporting is mandatory to comply with legal requirements and avoid penalties.
Common mistakes include inaccurate data entry and failure to report all relevant transactions involving non-residents.
The deadline for submitting NR4 Statements is typically March 31st of the following calendar year. The timeline is important for property managers to avoid penalties and ensure compliance with Canadian tax regulations.
Yes, NR4 Statements can be submitted electronically through the Canada Revenue Agency's (CRA) secure online portal. Electronic submissions provide a convenient and efficient way to fulfill reporting requirements.
Yes, there are exceptions to filing NR4 for certain payments. Generally, payments that fall under treaty exemptions or are considered non-taxable may be exempt from NR4 reporting. Consult the CRA guidelines and ensure accurate interpretation.
If errors are identified in an NR4 Statement after submission, an amended statement can be filed. The payer should promptly rectify any mistakes and submit the corrected information to the CRA. Timely correction ensures accurate financial records and compliance.
For NR4 reporting, it's essential to collect comprehensive information from non-residents. This includes their legal name, address, country of residence, and a valid tax identification number. Accurate information ensures precise reporting and compliance.
Yes, NR4 Statements can be amended after submission. If errors or omissions are discovered, the payer should promptly file an amended statement with the correct information. However, it's crucial to follow the CRA guidelines for amendments to ensure accuracy and compliance.
If a gross income of $50 or more was paid to the non-resident in the year, then the NR4 Return has to be filed regardless of whether any non-resident withholding taxes were remitted. However, if less than $50 of gross income is paid to the non-resident, the NR4 Return does not have to be filed unless taxes were withheld. In that case, you will have to file the NR4 Return.
