Glossary

NR7-R

Application for Refund of Part XIII Tax (CRA form NR7-R)

An NR7-R (Application for Refund of Part XIII Tax Withheld) is the CRA form used to claim back Part XIII tax that was withheld in excess of what was actually owed — for example, withholding on gross rent that should have been reduced, or an outright error. It must generally be filed within two years after the end of the calendar year the tax was sent to the CRA.

Who it applies to: A non-resident (or their Canadian agent) who had too much Part XIII tax withheld on Canadian income.

Key facts

Form: CRA NR7-R
Recovers: Over-withheld or erroneous Part XIII tax
Deadline: 2 years after the end of the year the tax was remitted
Filed by: The non-resident or their agent

How it works

Identify the Part XIII tax that was withheld but not actually payable (e.g., withheld on gross when net was correct, or remitted in error).
File a separate NR7-R for each non-resident and each type of income, with the NR4 and remittance details.
If you are instead electing to be taxed on net income, the refund usually flows through the Section 216 assessment rather than an NR7-R.

Go deeper: NR4 Form: Complete Guide · CRA Part XIII remittance calculator

Related terms

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.

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.

Frequently asked questions

What is the deadline to file an NR7-R?

An NR7-R must generally be filed within two years after the end of the calendar year in which the Part XIII tax was remitted to the CRA. After that, the over-withheld tax usually can no longer be refunded.

Do I need an NR7-R if I file a Section 216 return?

Usually not. When you elect under Section 216 to be taxed on net rental income, any over-withheld Part XIII tax is reconciled and refunded through that return's assessment, so a separate NR7-R is not required.

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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