Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hello Sir,
I hope you are doing well. I would like to ask for professional advice regarding my situation as a non-resident receiving a CPP Survivor’s Pension from Canada.
I am a Filipino resident and have never been to Canada. I am also a widow, and currently my only source of income is my CPP Survivor’s Pension. At the moment, I do not have a stable job and mainly rely on this pension for support.
I started receiving the pension in 2024. In 2025, I applied for an NR5 application and later received correspondence stating that it was approved with a 0% withholding tax rate. However, until now, 25% tax is still being withheld from my monthly pension payments.
I would also like to ask about filing under Section 217. Since I only started receiving the pension in 2024, I am wondering if it is still possible to file a 2024 Section 217 return even if it may already be considered late.
Because the 25% tax was withheld at source from my pension, I would like to know if I may still qualify for a tax refund, especially considering my low income and non-resident status.
I would sincerely appreciate your advice regarding:
- Whether I can still file a Section 217 return for 2024
- Whether I may qualify for a refund of the taxes withheld
- Why the approved 0% NR5 rate may not yet be reflected on my pension payments
- What steps I should take moving forward
Thank you very much for your time and assistance. I truly appreciate any guidance you can provide.
Sincerely,
Marie
Hi Marie,
Thank you for your message.
Yes, we can assist you with this matter. Based on the facts you provided, you are a non-resident of Canada living in the Philippines and your Canadian income is limited to a CPP Survivor’s Pension.
For non-residents, CPP and other Canadian pension payments are generally subject to 25% non-resident withholding tax, unless reduced by treaty or by CRA approval, such as through an approved NR5 application. CRA also allows certain non-residents receiving Canadian pension income to file a Section 217 return, which may result in a refund of some or all of the tax withheld, depending on the final calculation.
1. Can you still file a 2024 Section 217 return?
Yes, it may still be possible to file a 2024 Section 217 return, even if it is late. CRA may still process the return, but we would need to review your documents before confirming the best filing position.
2. Could you qualify for a refund?
Possibly, yes. Since your income is low and the 25% tax was withheld at source, a Section 217 return may allow you to recover part or all of the tax withheld. The refund amount would depend on your total worldwide income, the CPP amount received, and the tax calculation.
3. Why is 25% still being withheld even though the NR5 was approved at 0%?
This may be an administrative issue. The NR5 approval may not yet have been properly applied by Service Canada, or the payer may not have updated its withholding instructions. NR5 approvals are used to reduce non-resident withholding, and approved NR5 relief can generally cover multiple years.
You should contact Service Canada / CPP International Operations and provide them with a copy of the NR5 approval letter showing the approved 0% withholding rate.
4. Recommended next steps
Please send us the following documents for review:
- Your 2024 NR4 slip for the CPP Survivor’s Pension
- Your 2025 CPP payment details and withholding details
- The CRA NR5 approval letter showing the 0% withholding rate
- Any letters received from CRA or Service Canada
- Details of your worldwide income for 2024 and 2025, even if the income was nil or very low
- Your Philippine tax residency details and mailing address
Our fee to prepare a Section 217 non-resident tax return is $350 per year, plus disbursements. If CRA follow-up is required regarding the NR5 withholding issue, that would be billed separately at $140 per hour.
Regards,