I have a USD saving's account with ING bank of Canada. When I left in 2007 I notify ING to change my account type to non-resident account. Today I received NR4 tax form with 271 CAD interest and zero tax witheld. I know the tax rate should've been 10%. I called ING and they told me that they are not witholding non-resident taxes on non-resident USD account. Is that true?On the NR4 tax slip it says "exception B". What should I do? Just send a check of 10% interest to CRA?
Tax issue:Zero non-resident tax witheld on NR4
- Thread starter kwirky
- Start date
I had the same issue a few years ago - I sent a check (10% of the total interest I received as a NR) along with a cover letter. The CRA accepted that.
What I suggest is call them first to ask them to assign you a NR number. Tell them you need it because you need to pay your NR witholding. It is some kind of ID issued to the non resident people. Then using that as a ref., send a cover letter and your check.
That must be it - mine starts with the letters "NR" as well.
nelsona
Registered Users (C)
You only owe 10% on the ammount that was paid AFTER you leave.
The amount from BEFORE you left is to be reported on your Cdn departure return and will be subject to regular Cdn/Provincial income tax.
Only you know when you left.
As of jan 01, 2008 NR tax is no longer withheld on bank interest.
Don't forget to include the interest on your US return, and report the existence of the foreign account.
The amount from BEFORE you left is to be reported on your Cdn departure return and will be subject to regular Cdn/Provincial income tax.
Only you know when you left.
As of jan 01, 2008 NR tax is no longer withheld on bank interest.
Don't forget to include the interest on your US return, and report the existence of the foreign account.
Is the NR number required for all non residents?
They gave me the NR number inspite of having my SIN number on their record. The purpose of this is that the NR tax is applied against/associated with your NR number (and not the SIN - which is associated with your normal income tax). This is what I was told by the CRA person.