Do I need to file a Canadian tax return if I am a non-resident and only earn dividend income?
In most cases, no. If your only Canadian-source income is passive (for example, dividend), this income is taxed under Part XIII of the Income Tax Act (ITA). The tax is withheld at source by the bank and is considered final and conclusive. No Canadian tax return is required, unless you are claiming a refund or a specific credit.
What is the tax rate on dividends paid to a non-resident?
The default rate is 25%, but it may be reduced (sometimes to 0%) under a tax treaty between Canada and your country of residence. Your financial institution usually applies the treaty rate automatically. This is why it is important that you communicate your non-resident status to your financial institution as well as your country of residency.
When must a non-resident file a tax return in Canada?
A non-resident must file a tax return if they earn Canadian-source income other than passive income taxed under Part XIII (for example: employment income, rental income, or a capital gain on the sale of Canadian real estate). In such cases, you must file a T1 or a T1159 non-resident tax return.