Glossary
NR6
NR6 undertaking
An NR6 is an application by a non-resident landlord and their Canadian agent to have Part XIII tax withheld on the NET rental income (rent minus expenses) instead of 25% of the gross. It must be approved by the CRA before the rental year and commits the agent to filing a Section 216 return.
Who it applies to: Non-residents whose expenses make 25%-of-gross withholding far more than their real tax.
Key facts
- Deadline
- Approved before the rental year (before Jan 1)
- Effect
- Withhold 25% of NET rent, not gross
- Commits you to
- Filing a Section 216 return
How it works
- You and your agent file the NR6 before the year begins; CRA reviews your projected expenses.
- Once approved, the agent withholds 25% of net rent — keeping most of the cash in your hands through the year.
- Because you filed an NR6, the Section 216 return at year-end becomes mandatory (due June 30).
Related terms
NR4
The Canadian information slip a payer or agent files each year to report gross rent paid to a non-resident and the Part XIII tax withheld on it. Due March 31.
Section 216
An election that lets a non-resident landlord be taxed on NET rental income at graduated rates instead of 25% of gross — usually producing a refund.
Part XIII tax
Canada's flat 25% withholding tax on certain amounts paid to non-residents, including gross rent. Remitted by the payer by the 15th of the next month.
Frequently asked questions
When is the NR6 due?
The NR6 must be approved by the CRA before the rental year begins (before January 1), or before the first rent payment for a new mid-year property. It is not accepted retroactively.
What is the difference between NR6 and Section 216?
NR6 is approved before the year and reduces withholding to 25% of net rent during the year. Section 216 is filed after the year to report net income and reconcile the tax — often a refund. Filing an NR6 commits you to filing the Section 216 return.
This definition is general information, not tax advice. See the full guide above and verify current rules with the CRA or IRS. ← Back to the glossary
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