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I am a Canadian non resident living in Hong Kong, and I figured out I forgot to update my status with bank for many years. The income is from share dividends, and I found I got T5 slips mailing to me annually. The situation has been like this for many years but I didn’t know because I havent been back to Canada for many years. What should I do now? thank you.
You should write a letter to the Non-Resident Withholding Tax Department of the CRA explaining the situation. With the letter, enclose a copy of the T5 slips received and a cheque payable to the Receiver General of Canada for 15% of the amount of the Canadian dividends received. This is the applicable withholding tax rate pursuant to the Canada-Hong-Kong Tax Treaty. Going forward, your bank should deduct 15% from dividend payments made to you and issue an NR4 slip to report the amount of dividends paid to you and taxes deducted in the year.