Our Certificate of Compliance services in Calgary help non-residents, executors, and foreign investors avoid 25% withholding tax when disposing Canadian property. We handle Section 116 certificate applications, T2062 filing requirements, and CRA compliance coordination to protect your sale proceeds. Our team ensures complete compliance with Canadian tax regulations while securing timely certificate approval for smooth real estate transactions.
Non-residents selling Canadian property without a Section 116 certificate face 25% withholding tax on the entire sale price instead of just the capital gain. When sellers miss the 10-day filing deadline after property disposition, this withholding tax becomes mandatory and can cost thousands of dollars in unnecessary payments. Many T2062 applications contain errors in property valuations or tax calculations that delay real estate closings and create expensive problems for property sellers.
Calgary Tax Consulting prevents these expensive mistakes through expert Section 116 certificate preparation that protects your sale proceeds from unnecessary withholding tax. Our team handles complete certificate applications with accurate property valuations and manages the timing to coordinate with your real estate closing.
Our Certificate of Compliance service in Calgary manages the entire Section 116 process from initial T2062 preparation through final certificate approval. We handle all required documentation, coordinate with real estate professionals, and communicate directly with CRA throughout the process.
Section 116 of the Income Tax Act requires every non-resident who disposes of taxable Canadian property to notify CRA and obtain a certificate of compliance. Taxable Canadian property includes residential property, commercial property, vacant land, and shares in private corporations that hold Canadian real estate. The purchaser must withhold 25% of the purchase price and remit it to CRA unless the seller produces a valid certificate before or shortly after closing.
Our Section 116 filing service in Calgary begins with a full review of your property records to establish the adjusted cost base and current fair market value. We prepare Form T2062 for real property dispositions and Form T2062A for depreciable property, calculate the actual capital gain, and submit the application with supporting documents that CRA accepts without follow-up requests. Payment or acceptable security covering the estimated tax must accompany the application before CRA issues the certificate.
Calgary Tax Consulting also files the final non-resident tax return that reports the disposition and recovers any excess amount held back at closing. Foreign sellers, estates, and trusts across Alberta rely on our cross-border tax accountants to complete this process correctly the first time.
Non-residents selling taxable Canadian property must apply for a certificate of compliance by filing Form T2062 with CRA. This Section 116 application can be submitted before the proposed sale or no later than 10 days after the closing date. The form requires details about the property, the adjusted cost base, the sale price, and the estimated capital gain along with supporting documents such as the purchase agreement and proof of original cost.
CRA requires payment or acceptable security covering 25% of the estimated capital gain before it issues the certificate of compliance. Applications can be submitted through CRA My Account, Represent a Client, or My Business Account. Once CRA receives the completed T2062 and the required payment, the certificate of compliance typically takes 12 to 16 weeks to process depending on the complexity of the file.
Applying early is critical because the buyer’s lawyer will hold back 25% of the gross sale price in trust until the clearance certificate is provided. Late applications also carry a penalty of $25 per day up to a maximum of $2,500. Submitting the T2062 with accurate and complete documentation from the start is the most effective way to avoid holdback delays and secure a timely certificate approval.
Let Calgary Tax Consulting experts file your belated return & claim your tax.
We handle complete T2062 applications, property valuation coordination, and CRA communication to secure timely certificate approval that eliminates 25% withholding tax on your Canadian property disposition.
At Calgary Tax Consulting, we coordinate certificate timing with your closing schedule and work directly with real estate professionals to ensure your property sale completes without withholding tax complications or closing delays.
We handle every step of the Section 116 process so your Canadian property sale closes without withholding tax delays or compliance issues. From T2062 preparation to CRA communication and real estate closing coordination, our team manages it all so you can focus on your transaction.
Expert T2062 and T2062A preparation with accurate property valuations and capital gain calculations for non-resident property dispositions.
Professional certificate processing to avoid 25% withholding tax on Canadian property sales and protect your sale proceeds.
Strategic timing management to secure certificate approval before closing deadlines and prevent transaction delays or withholding requirements.
Complete Section 116 compliance including fair market value documentation, security posting, and direct CRA communication throughout the process.
