Non-Resident Tax on Canadian Pensions
Are you receiving a pension from the Government of Canada?
Do you live outside Canada?
December 2004
- Catalogue number ISPB-226-12-04E
- Printable version in PDF format (212 kb, 4 pages). To download and print PDF files, you will need the free Adobe Acrobat Reader.
If so, please read on for some important information about your pension.
Your monthly Old Age Security ( OAS) and Canada Pension Plan ( CPP) or Quebec Pension Plan ( QPP) benefits may be subject to a Canadian income tax called the "non-resident tax".
- How does this tax work?
- Can I reduce the amount of tax withheld?
- How do I change my tax rate?
- Non-resident tax rates by country
- Canadian forms and publications online
- Contact us
How does this tax work?
Non-resident tax is withheld from monthly OAS, CPP and QPP payments to beneficiaries living outside Canada. Normally, the tax rate is 25 percent. It may differ if Canada and your country of residence have signed an income tax treaty (see tax rates by country).
Can I reduce the amount of tax withheld?
You might benefit from being taxed at the same rate as Canadian residents (see tax rates by country). If you choose the Canadian tax rate, you may be able to reduce the amount of tax withheld.
How do I change my tax rate?
You must complete the NR5 form, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld. To obtain this form, contact the Canada Revenue Agency.
Mail your completed NR5 form to the Canada Revenue Agency before October 31st. This will ensure that any reductions will start with your January payment(s). If you just started receiving pension benefits and wish to be taxed as a Canadian resident, you should submit this form as soon as possible.
Please note:
If you have a high income (a net world income exceeding $59,790 for 2004) and receive Old Age Security benefits, you may also be subject to the OAS recovery tax. Information about this tax is available in a separate fact sheet for OAS pensioners living outside Canada (publication number: ISPB 216).
The total of the non-resident tax and the OAS recovery tax cannot be more than the amount of OAS benefits you receive.
Non-resident tax rates by country
Canada has tax treaties with some countries that affect the amount of non-resident tax withheld. This table shows the tax rate that applies to your country of residence.
Country Alphabetical Index
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
Canadian forms and publications online
Canada Revenue Agency
www.cra.gc.ca
Social Development Canada
www.sdc.gc.ca
You can also contact your Canadian embassy or consulate for forms and publications. The Consular Affairs Bureau is online at:
www.voyage.gc.ca
Canada Revenue Agency
- 1 800 267-5177
- 1 800 665-0354 (TTY)
- (toll-free in Canada and the U.S.)
- 1 613 952-3741
- (from all other countries)
- Fax: 1 613 941-2505
- www.cra.gc.ca
- Canada Revenue Agency
- International Tax Services Office
- Ottawa ON K1A 1A8
Contact us
About your OAS or CPP benefit:
- 1 800 277-9914*
- 1 800 255-4786 (TTY)
- (toll-free in Canada and the U.S.)
- 1 613 990-2244
- (from all other countries)
- Fax: 1 613 952-8901
- www.sdc.gc.ca
- Social Development Canada
- Income Security Programs
- Ottawa ON K1A 0L1
*Our lines are busiest at the beginning and end of the month. If your inquiry can wait, it's best to call at other times.
If you contact us, please remember to provide us with your social insurance or OAS account number.
