URGENT for PaBIA NON Canadians February 17, 2023

Folks – there are a lot of questions swirling around. If you’ve figured it out, then there is no need for you to continue. Below are two questions that seem to be out there….hope it helps!

Is PaB exempt? the answer is YES.

Use this link to Underused Housing Tax – Canada.ca and scroll down to see this:

Refer to the Underused housing tax vacation property designation tool to determine if your residential property is located in an eligible area of Canada for the purposes of this exemption.

and this is what you see:

“Underused housing tax vacation property designation tool

Search result for postal code P0G 1K0 – Based on the postal code you entered, the residential property is located in an eligible area of Canada for purposes of the vacation property exemption.”

For the clearest explanation, use this CN government link. It gives you links to various explanations.

The ITN number

“If you are an individual who is not a Canadian citizen or permanent resident, and you already have a SIN, you must use your SIN to file your return.

If you do not have a SIN, you must use an ITN to file your return. If you do not have an ITN, you must apply for one.”

Application for a CRA individual tax number (ITN) for non-residents (Form T1261)

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This is the same information sent out before….

This information has just come in from the GBA and applies to ALL NON-Canadians who own property in Canada and is being sent to all active PaBIA members for whom we have an email address on file who live outside Canada. Feel free to pass it on to anyone to whom it is applicable.

Underused Housing Tax for Non-Canadians – The deadline is April 30, 2023

ALTHOUGH POINTE AU BARIL IS IN THE EXEMPT AREA, NON-CANADIANS MUST FILE ANYWAY

Last year the federal government brought in the Underused Housing Tax (UHT) which is an annual 1% tax on the ownership of vacant or underused housing in Canada. The intention of this tax is to make housing more affordable for Canadian residents by deterring non-residents from passively investing in Canadian real estate.

The UHT applies to non-resident, non-Canadian owners and though the new tax will not likely affect many of our US and international seasonal residents [Pointe au Baril is in an exempt area], non-Canadian property owners will be REQUIRED to file the UHT-2900 Underused Housing Tax Return and Election Form by April 30. There is a minimum $5000 penalty for not complying.

The CRA has just released the required UHT-2900 Underused Housing Tax Return and Election Form. Please review and share this important information with your members as soon as possible so that those affected can have the information that they need to be compliant with this new legislation.

• More information on the Underused Housing Tax can be found on the Government of Canada’s webpage here.
• Each owner must have an ITN (Individual Tax Number)  FILE NOW if you don’t have one so you will have it in time for the filing deadline!
• The tax form (UHT-2900) can be found here.
• GBA has posted a short piece on the tax that should explain some of the nuances here.

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