The NR6 form—officially called "Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real or Immovable Property"—is your ticket to reduced withholding tax. But the official instructions can feel like they were written for tax professionals, not regular landlords.
This guide breaks down every section in plain English so you know exactly what to do.
Before You Start
You'll need: your property address, estimated rental income and expenses for the year, your Canadian agent's information, and either a SIN, ITN, or tax account number.
When to File the NR6
The NR6 must be filed before you start receiving rental income for the year. Specifically:
- On or before January 1 for properties you already own
- Before your first rental payment is due for newly acquired properties
You need to file a separate NR6 for each tax year. For individuals, the tax year is January 1 to December 31. For corporations, estates, and trusts, it follows your fiscal year end.
Section 1: Non-Resident Identification
This section is about you—the property owner.
What You'll Enter:
- 1
Full legal name
As it appears on your tax documents
- 2
Complete address (including country)
Your residential address outside Canada
- 3
Phone number
Include country code for international numbers
- 4
Tax identification number
For individuals: Canadian SIN or ITN (Individual Tax Number). Don't have one? You'll need to complete Form T1261.
For corporations/trusts: Canadian tax account number + fiscal year end - 5
Date of birth
For individuals only
- 6
First month you expect rental income
Usually January for existing properties
Common Mistake
Incomplete forms are returned without processing. Double-check that every field is filled in before submitting.
Section 2: Rental Property Information
This section covers your Canadian property and expected financials.
What You'll Enter:
Full property address
Street number, street name, unit/suite number, city, province, postal code. For rural properties, include lot and concession numbers.
Estimated gross rental income
Total rent you expect to collect for the year (before any expenses)
Total estimated expenses
All deductible costs for the year
Estimated net income
Gross income minus expenses
Itemized Expense Breakdown (Required)
CRA requires you to attach a separate sheet with itemized expenses. This isn't optional—forms without it will be returned.
| ✓ Include These Expenses | ✗ Do NOT Include |
|---|---|
| Mortgage interest | Capital Cost Allowance (CCA) |
| Property taxes | Depreciation |
| Insurance | Amortization |
| Condo/strata fees | (Claim these on your Section 216 return instead) |
| Property management fees | |
| Repairs and maintenance | |
| Utilities (if you pay them) | |
| Advertising for tenants |
Multiple Properties?
List each property separately. If you run out of space, attach additional sheets. Each property needs its own income/expense breakdown.
Section 3: Non-Resident Undertaking (Your Commitment)
By signing this section, you're making a legal promise to CRA:
- You will file a Section 216 income tax return within 6 months of your tax year end (by June 30 for most individuals)
- You understand that failing to file means you owe 25% of gross rent plus interest
Sign and date in the designated area. If someone else signs on your behalf (power of attorney), they must print their name and attach the POA document.
This Is a Legal Commitment
If you don't file the Section 216 return as promised, CRA will require you to pay the full 25% withholding on gross income (not net), plus interest. They don't send friendly reminders.
Section 4: Canadian Agent Identification
Your Canadian agent is a resident of Canada who receives rental payments on your behalf. This is a CRA requirement—you cannot file NR6 without one.
Agent Information Required:
- Full name
- Canadian address
- Phone number
- Non-resident tax account number (CRA assigns one if they don't have it)
- Other CRA identifiers (BN, SIN, ITN, or trust account number)
The agent also signs the form and takes on responsibility:
- If you don't file Section 216, the agent may be liable for the 25% tax plus penalties
- The agent must file an NR4 return by March 31 (or within 90 days of fiscal year end)
Where to Submit the NR6
You have several options:
📮 By Mail
Non-Resident Withholding Section
Canada Revenue Agency
PO Box 20000, Station A
Sudbury ON P3A 5C1
💻 Online
Through CRA's "Submit Documents" service in My Account
📠 By Fax
In Canada/US: 1-866-765-8460
International: 1-705-677-7712
❓ Questions?
In Canada/US: 1-855-284-5946
International: 613-940-8499
What Happens After You Submit
CRA reviews your form (4-8 weeks)
They verify all information is complete and accurate.
Both you and your agent receive written approval
This letter confirms your reduced withholding rate.
Agent starts withholding at the new rate
Based on net income, not gross. Tax is remitted by the 15th of the following month.
Important: Until Approval
Your agent must continue withholding 25% of gross rent until CRA approves the NR6 in writing. The reduced rate only applies after approval.
Your Ongoing Obligations
| Who | What | When |
|---|---|---|
| Agent | Remit withholding tax to CRA | 15th of following month |
| Agent | File NR4 return | By March 31 |
| You | File Section 216 return | By June 30 |
| You | File new NR6 for next year | By December 31 |
The Bottom Line
The NR6 form isn't complicated once you understand what each section requires. The key is being thorough—incomplete forms get returned, and late filings mean months of unnecessary 25% gross withholding.
Skip the Paperwork
At NR6.ca, we handle the entire NR6 process for you—including acting as your Canadian agent, filing Section 216, monthly remittances, and NR4 slips. One flat fee. No forms to fill out yourself.
