• NR4 slip - Government copy

When to fill out the NR4 slip

You have to fill out an NR4 slip for every non-resident to whom you paid or credited amounts described under Part XIII of the Income Tax Act, even if you are not required to deduct any tax.

You also have to fill out 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 fill out 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.

Filling out the NR4 slip

Box 10 - Year

Enter the four digits of the calendar year in which you made the payment to the recipient. For estates and trusts, enter the four digits of the tax year-end in which they 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

Box 12 - Country code for tax purposes

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.

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.

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).

Distributing the NR4 slips

You must give recipients their NR4 slips on or before the last day of March after the calendar year the slips apply to. For estates or trusts, give the copies no later than 90 days after the end of the estate's or trust's tax year. If you do not, the CRA may assess you a penalty. The penalty for failing to distribute NR4 slips to recipients is $25 per day for each such failure with a minimum penalty of $100 and a maximum of $2,500.

Print the two NR4 slips that you have to give to each recipient on one sheet.

Give each of your recipients their NR4 slip in one of the following ways:

• one copy sent electronically (for example, by e-mail) if you have the recipient's written consent on paper or in electronic format to send the NR4 slip electronically;

• two copies, sent by mail to the recipient's last known address; or

  Note

  If NR4 slip copies are not deliverable, you may want to keep the copies with the recipient's file. If you know that the address you have for a recipient is not correct, do not send the recipient's NR4 slip copies to that address. Document why the copies were not sent and your efforts to get the correct address. Keep this information with the NR4 slips copies in the recipient's file. You still have to include that NR4 slip information in your NR4 information return when you file it.

• two copies, delivered in person.

Keep the information from the NR4 slips in your records.

Useful link:

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