Form NR5 - 5-year Administrative Policy
Form NR5 is the Application by a non-resident of Canada for a reduction in the amount of non-resident tax required to be withheld.
If we approve your Form NR5, the approval usually covers five tax years.
You only need to send one form every five years.
What happens when we approve your NR5
When an NR5 application is approved:
- The approval period always covers five tax years.
- We tell each Canadian payer the reduced tax rate to use on your qualifying Canadian income.
- The reduced rate stays the same for the full five years unless your situation changes.
- You must file a section 217 income tax return for each year in the approval period.
- You must send your section 217 return within six months after the end of each tax year.
Changes you do not need to report
You do not need to send an amended NR5 if:
- Your pension increases each year because of cost of living adjustments (indexing).
We already take these increases into account when we first review your application.
Example
Tracy files her Form NR5 in October 2017.
If we approved it:
- The approval covers the 2018 to 2022 tax years.
- Tracy does not need to send another NR5 until October 2022.
- If approved again, the next period covers 2023 to 2027.
For each year from 2018 to 2022, Tracy must file a section 217 income tax return within six months after the year ends.
How to amend your NR5 application
You can send an amended NR5 if the amount of income you receive changes during the five-year period.
When you send an amended application:
- We may change your withholding rate.
- We will tell you and your Canadian payers if the rate changes.
Important rules
- If we approve an amended NR5 in the first year, the five-year period does not change.
- If we approve an amended NR5 in any later year, it counts as a new application.
- A new five-year period will start.
How to cancel your NR5
You can ask us to cancel your NR5 at any time.
If you cancel:
- You must file a section 217 income tax return for any years already approved.
Where to send requests
Send requests to amend or cancel an NR5 to:
Non-Resident Withholding Section
Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON P3A 5C1
Canada
Fax:
- 705-677-7712
- 1-866-765-8460
Get help
Call the International Tax and Non-Resident Enquiries line:
- 1-855-284-5946 (Canada or the United States)
- 613-940-8499 (outside Canada and the United States - we accept collect calls)
Forms and publications
- Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld
- T4145 - Electing Under 1 217 of the Income Tax Act
- T4061 - NR4 - Non-Resident Tax Withholding, Remitting and Reporting
- 5013-G - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada