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<\/em> (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.<\/p>\n\n 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.<\/p>\n\n 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.<\/p>\n","protected":false},"excerpt":{"rendered":" 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 […]<\/p>\n","protected":false},"author":20,"featured_media":11074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[70],"tags":[],"class_list":["post-11077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-tax"],"acf":[],"yoast_head":"\nWhat is the tax rate on dividends paid to a non-resident?<\/h2>\n\n
When must a non-resident file a tax return in Canada?<\/h2>\n\n