NR4 slip - Government copy

When to complete the NR4 slip

You have to complete an NR4 Slip for every non-resident to whom you paid or credited amounts that are subject to withholding tax under Part XIII of the Income Tax Act.

You also have to complete an NR4 slip if you are considered, under Part I or Part XIII of the Income Tax Act, to have paid or credited amounts. You have to complete an NR4 slip even if you did not withhold tax on these amounts, or you did not have to withhold tax on these amounts due to an exemption under the Income Tax Act or a bilateral tax treaty.

Completing the NR4 slip

Box 10 - Year

Enter the four digits of the calendar year in which you made the payment to the recipient.

Box 11 - Recipient code

Enter the appropriate code from the following list:

1. individual
2. joint account
3. corporation
4. other (for example, association, trust, including fiduciary-trustee, nominee, estate, or partnership)
5. government, government enterprise, or international organizations and agencies prescribed by regulation

Note

The prescribed international organizations and agencies are:

• Bank for International Settlements
• European Fund
• International Bank for Reconstruction and Development
• International Development Association
• International Finance Corporation
• International Monetary Fund
• European Bank for Reconstruction and Development

Box 12 - Country code

From the list in Appendix A of Guide T4061, enter the three-letter code for the country in which the recipient is a resident for tax purposes. Only use the codes listed in Appendix A. Generally, the recipient's country for tax and mailing purposes will be the same. However, if they are different, you must always enter the country of residency for tax purposes.

Payer or remitter identification number

Enter the number your organization assigns to non-resident payees. For example, if you are a financial institution, enter the number assigned to your client (such as an annuitant number or client number) in this box. If you do not use such a number, leave this area blank.

Box 13 - Foreign or Canadian tax identification number

Enter the identification number assigned to the non-resident for tax purposes by their country of residence. If a non-resident does not give you an identification number, ask if a Canadian social insurance number (SIN) is available and enter the number here.

Note

If an identification number is not available, ask the non-resident if they have been assigned an individual tax number (ITN), a temporary tax number (TTN) or a Canadian payroll account number (15 characters) by us and enter it here. If no number is available, leave the area blank.

Box 14 or 24 - Income code

Enter the appropriate numeric income code from the list in Appendix B of Guide T4061 For example, enter income code 31 to identify a lump-sum payment from a deferred profit-sharing plan.

Use the proper two-digit code. For example, copyright royalties should be reported using "05" not "5."

Since January 1, 2009, Tax-Free Savings Account (TFSA) amounts paid during the exempt period to a non resident beneficiary are subject to Part XIII tax to the extent they exceed the amounts designated by the trust.

The exempt period is from the date of death of the holder of a TFSA governed by a trust to the end of the year following the year of death or the date the trust ceases to exist, if earlier.

We have added code 64 to report these amounts. For more information, see RC4477, Tax Free Savings Account (TFSA) Guide for Issuers.

Box 15 or 25 - Currency code

All income and withholding tax should be reported in Canadian funds. Enter currency code CAD. If you cannot report the amounts in Canadian funds, enter the three-letter code of the currency for the amounts reported as gross income (box 16 or 26) and tax withheld (box 17 or 27). See Appendix D of Guide T4061 for a list of the currency codes.

Box 16 or 26 - Gross income

Enter in Canadian funds the gross income you paid or credited to non-residents of Canada if:

• the amount paid or credited, or deemed paid, or credited under Part I or Part XIII of the Income Tax Act is $50 or more; or
• any amount under Part XIII has been withheld.

In addition, payers of rental income have to enter the gross rental income, and film industry payers have to enter the gross income for acting services, even if no tax was withheld on some or all of the income.

Box 17 or 27 - Non-resident tax withheld

Enter in Canadian funds the amount of non-resident tax you withheld. If you cannot convert foreign funds to Canadian currency, complete box 15 or 25 (Currency code), in order to clearly indicate on the NR4 slip the currency of the tax you withheld. This will help us and the non-resident.

Note

For box 16 or 26 - (Gross income), and box 17 or 27 - (Non-resident tax withheld), individuals and corporations report income based on the calendar year and estates and trusts report income based on the fiscal year end.

Box 18 or 28 - Exemption code

Enter the exemption code that applies from the list in Appendix C of Guide T4061. This code gives the authority under the Income Tax Act or a bilateral tax treaty to exempt the amount from Part XIII withholding tax, or to apply a reduced withholding rate, as a result of certain elections.

If no tax is withheld, the correct exemption code must be included.

Non-resident recipient's name and address

If you are preparing the NR4 slip for an individual, enter their last name, followed by the first name and initial. Otherwise, enter the name of the corporation, organization, association, trust, or institution.

If it applies, enter the second recipient's name (if this is not a joint account or there is only one recipient, leave this line blank).

Note

Do not enter the name of the secretary treasurer or any other individual who has signing authority.

Enter the recipient's full mailing address as follows:

Lines 1 and 2 - Enter the street address, (civic number, street name, and post office box number or rural route number).

Line 3 -

• For Canadian addresses, enter the city, two-letter provincial or territorial code (as found in Appendix E of Guide t4061), and the postal code.
• For U.S. addresses enter the city, two-letter state, territory or possession code (as found in Appendix E), and the zip code.
• For addresses outside Canada and the United States enter the postal code and then the city name.

Line 4 - Enter the full country name (if Canada, leave blank but enter CAN in the country code box).

Country code - Enter the three-letter country code from Appendix A of Guide T4061 that corresponds to the country you indicated on line 4. This country code is for mailing purposes only.

Name and address of agent or payer

Enter your full name and address.

Non-resident account number

Enter the account number under which you remit your non-resident tax deductions to us. This number has to match the account number shown on the remittance part of Form NR76, Non-Resident Tax - Statement of Account.

Distributing the NR4 slips

You must give recipients their NR4 slips on or before the last day of March following the calendar year to which the slips apply. For estates or trusts, provide the copies no later than 90 days after the end of the estate's or trust's tax year.

Print the two NR4 slips that you have to give to each recipient on one sheet. For security purposes, do not print your payer or remitter identification number on these copies.

Provide the recipients with:

• two copies, sent by mail to their last known address;
• two copies, delivered in person; or
• one copy distributed electronically (for example, by e-mail) if you have received the recipient's consent in writing or electronic format.

Keep a copy of the NR4 slips for your records.

Note

If NR4 slips are returned as undeliverable, we suggest that you retain the slips with the non resident's file.

Useful link:

Guide T4061, NR4 - Non-Resident Tax Withholding, Remitting and Reporting.