Sebastien Desmarais

Total 51 Posts

Sébastien Desmarais is a Tax and Estate Planner at TD Wealth, Wealth Advisory Services.

Non-Resident and Rental Income – Not so Fast.

• • 0 Comments

When a non-resident of Canada generates rental income from a Canadian rental property, the tenant (or agent for the non-resident) must withhold 25% of the gross rental payment (unless a tax treaty reduces the withholding rate) and remit it to the Canada Revenue Agency by the prescribed date. It’s important to note that no deductions nor credits are permitted thus, the withholding is on the full rental payment. Rental Income….

Non-Resident and Rental Income – Not so Fast. Continue Reading »

Estate Planning, Real Estate, Tax Issues, Trustee

Non-Resident Beneficiary and Part XIII Withholding Tax – Trustee Beware

• • 0 Comments

When trustees distribute income of a trust to a non-resident beneficiary, they must be mindful of potential Canadian tax implications. Part XIII tax is a tax withheld at source when income is paid to a non-resident. For Canadian trust and estate purposes, Part XIII requires a non-resident beneficiary to pay tax on certain amounts that a Canadian trust or estate pays or credits (or is deemed to pay or credit)….

Non-Resident Beneficiary and Part XIII Withholding Tax – Trustee Beware Continue Reading »

Tax Issues, Trustee, Trusts

Non-Resident Beneficiary and Part XII.2 Tax

• • 1 Comment

It’s not uncommon for a trust or an estate to have a non-resident beneficiary. When such a situation arises, trustees should consider whether Part XII.2 tax applies. Essentially, Part XII.2 imposes a 40% tax on the non-resident beneficiary if the trust or estate earns designated income that would, if earned directly by a non-resident, be taxed under Part I of the Income Tax Act (the “Act”). Its purpose is to….

Non-Resident Beneficiary and Part XII.2 Tax Continue Reading »

Tax Issues, Trusts, Uncategorized
Scroll to Top