Electing Under Section 217

You should file under Section 217 to report certain types of Canadian sourced income, e.g.

• Canada Pension Plan and Quebec Pension Plan benefits;
• old age security pension (OAS);
• registered retirement savings plan payments (RRSP);
• registered pension plan payments;
• registered retirement income fund payments;
• death benefits;
• employment insurance benefits;
• retiring allowances;
• registered supplementary unemployment benefit plan payments;
• Deferred profit-sharing plan payments.

What is the due date for section 217?

Section 217 returns must be filed with the CRA on or before June 30th. Ensure you send it on time, as this election will not be accepted afterwards and if there is a possible refund, you won’t get it. Your taxes withheld will become your final tax obligations to Canada. If more was withheld than the required amount of taxes, you will be sent a Notice of Assessment from the CRA for the difference.

Form NR5 – Reducing tax withheld

What is Form NR5?

To reduce withholding tax, you may file the NR5 form. The CRA calls the NR5 the “Application by a Non-Resident of Canada for Reduction in the Amount of Non-Resident Tax Required to by Withheld”. Once approved, your financial institution will be able to reduce the tax withheld on the revenue. If the CRA approves the NR5, you must file the section 217 for each year of the approval period.

Section 217:

When should you elect under Section 217: Certain Canadian Sourced Income?

You should file under Section 217 to report certain types of Canadian sourced income, e.g.

• Canada Pension Plan and Quebec Pension Plan benefits;
• old age security pension (OAS);
• registered retirement savings plan payments (RRSP);
• registered pension plan payments;
• registered retirement income fund payments;
• death benefits;
• employment insurance benefits;
• retiring allowances;
• registered supplementary unemployment benefit plan payments;
• Deferred profit-sharing plan payments.