Trusted Markham Taxation Experts Helping Non-Residents Dispose of Canadian Properties

For a non-resident, selling a property in Canada can be complex, especially when it comes to tax obligations. If you are a non-resident disposing of taxable Canadian property, you are required to obtain a Certificate of Compliance from the Canada Revenue Agency (CRA) before the sale proceeds can be fully released to you. This process is done through Form T2062: Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property.

At KSSP Partners LLP, our experienced team of tax experts provides comprehensive preparation and filing services for Form T2062. We guide non-resident individuals, estates, and corporations through the requirements, ensuring that transactions are fully compliant with Canadian tax laws while minimizing unnecessary tax withholding.

What is a Form T2062?

A Form T2062 ensures the correct amount of tax is collected while avoiding excessive withholding. When a non-resident sells property in Canada, including real estate, shares of private Canadian corporations, or interests in Canadian partnerships, they are required under the Income Tax Act to notify the CRA and obtain a clearance certificate. This is an important step as the buyer is otherwise required to withhold and remit 25% of the gross purchase price directly to the CRA as a precaution against potential tax liability.

By filing Form T2062, a non-resident seller reports the details of the transaction and pays tax based on the actual capital gain rather than the gross proceeds. Once the CRA reviews the submission and accepts the estimated gain calculation, it issues a certificate of compliance. With this certificate, the buyer can remit only the necessary withholding tax, instead of the full 25% of the sale price, thereby freeing more of the sale proceeds for the seller.

How We Can Help

Preparing a Form T2062 can be complex. Errors, omissions, or incomplete submissions can lead to significant delays, requests for additional information, or excessive withholding by the CRA.

At KSSP Partners LLP, we understand that timing is critical. Real estate closings and other property transfers often operate on tight schedules, and obtaining a certificate of compliance quickly is essential to releasing funds and completing the transaction smoothly. As proactive tax experts, we work closely with you to ensure we deliver tailored solutions that meet your unique needs.

We can help:

• Deliver expert guidance on eligibility and which property types require Form T2062
• Accurate calculation of capital gains and tax payable
• Preparation of all supporting documents
• Direct communication with the CRA
• Coordination with buyers, legal counsel, and notaries to ensure a timely release of funds

Who Needs to File Form T2062?

If you are a non-resident, you need to file a Form T2062 within 10 days of the disposition of a property or entity to ensure you are not held liable for unnecessary taxes.  A Form T2062 will be necessary if you are a non-resident selling:

• Canadian real estate (residential, commercial, or vacant land)
• Shares of a private Canadian corporation
• Interests in Canadian partnerships, trusts, or specific business assets

Even if you are uncertain of your residency status for tax purposes, it is important to seek professional advice before the sale. Failing to file can result in delays, penalties, and excessive withholding that can tie up your sale proceeds for months.

Work With Trusted Tax Professionals

At KSSP Partners LLP, our progressive tax team has decades of experience guiding non-resident clients through the complexities of Canada’s tax compliance requirements. We understand the urgency and intricacy involved in property transactions, and we are committed to providing clear, responsive, and reliable service at every stage of the process.

We provide:

• Specialized tax expertise
• Fast and efficient turnaround, meeting essential deadlines
• Personalized support throughout the process
• Peace of mind from knowing all your compliance obligations are managed accurately and effectively

Tax Experts Providing Form T2062 Guidance in Markham and Across Ontario

Non-residents selling property in Canada face a number of challenges in ensuring their tax obligations are both compliant and filed within the required timelines. At KSSP Partners LLP, our trusted and highly knowledgeable team can help navigate the Form T2062 process, avoiding costly delays and enabling you to gain access to your proceeds sooner.  To learn more about how we can assist you with your Form T2062 needs, please contact us online or by telephone at 289-554-5997.