The Expiring Non-Resident Report identifies clients whose non-resident status documentation is approaching expiry or has already expired. Timely action on this report helps ensure accurate tax withholding and prevents compliance issues related to incorrect residency reporting.
What is a Non-Resident Declaration?
A non-resident declaration is documentation submitted by clients who are classified as non-residents of Canada. This status impacts how taxes are withheld on investment income, such as interest, dividends, or capital gains, based on applicable tax treaties between Canada and the client’s country of residence. Proper non-resident declarations help ensure that clients are subject to the correct non-resident withholding rates.
Why Clients Appear on this Report
Clients appear on the Expiring Non-Resident Report when their non-resident status documentation or declaration is approaching its expiry date or has recently expired. This typically includes non-resident codes or declarations that are required to be kept up to date for regulatory and tax reporting purposes.
How this Impacts Clients
If non-resident documentation expires without being renewed, clients may be incorrectly classified for withholding tax purposes, potentially resulting in higher default tax rates on Canadian investment income. This could cause clients to overpay taxes and require future adjustments or filings to recover excess amounts withheld.
How to Access the Expiring Non-Resident Report
To access the Expiring Non-Resident Report:
- Log in to the CRM portal.
- From the left navigation menu, click CRM > Contacts.
- On the contact’s index page, you can access the report as a saved view by clicking +Add view to the right of the tabs on the index page, and selecting Expiring Non-Resident Report from the dropdown.
You will now see a filtered list of clients whose non-resident declarations are expiring or expired.
Resolving Expiring Non-Resident Declarations
To address expiring or expired Non-Resident declarations, submit an update request through the CRM:
- Navigate to the client's CRM Contact Record.
- Submit an Update Account Documentation > NR-301 service request.
For detailed instructions, see the related article: Learn how to update a NR-301 form.
Best Practices
- Review the Expiring Non-Resident Report regularly (monthly or quarterly).
- Reach out to clients before expiry to confirm residency status and collect updated documentation.
- Ensure accurate records to avoid incorrect withholding tax rates and reduce the risk of compliance issues.