How to apply for refund of overseas buyer tax in Ontario, Canada

2020-08-12 | Anjia Realty

(1) Which non-resident buyers can apply for tax refund?
Buyers of different identities face different situations when applying for a tax refund. Therefore, the following Evan will disassemble most of the situations for everyone one by one:

a. Buyers with work permits
Buyers need to hold a valid Ontario work permit and have worked full-time for one year from the date of handover. In Ontario, working more than 30 hours a week is defined as full-time work.
Note: From the date of purchase, the purchaser must have been working full-time. Only the work permit does not meet the conditions!
When applying for a tax refund, the buyer needs to provide:

  1. A copy of a valid work visa, which proves that the work permit is true and valid for the entire one yea
  2. Complete work employment certificate, and pay stub (Pay Stub). Cannot provide only one Employment Letter
  3. Tax return (Notice of Assessment)

b. International students (international students)
Buyers need to hold a valid study permit and have been in Ontario full-time school for two full years from the date of handover.
The school you are attending can be University or College, but the school must be a registered institution under the Ontario Act 70/17 (this point is recommended for buyers to check with the school).
Note: The minimum requirement for full-time study is at least 60% of the full-year full-time course. That is to say, if the undergraduate year is divided into three semesters, after the international students complete the autumn and winter semesters full-time, It is possible to not take courses during the summer vacation.
When applying for a tax refund, the buyer needs to provide:

  1. Copy of valid study permit
  2. A full-time attendance certificate issued by an accredited school in Ontario and a full-time attendance course schedule for each semester. After checking with the Ministry of Finance, transfers are allowed during the two years, as long as both programs are full-time.

c. New immigrants
From the date of handover, home buyers who become Canadian immigrants within 4 years can apply for redemption of overseas buyer tax.
Note: The Ministry of Finance must receive the application for redemption within 90 days of the home buyer becoming a landed immigrant. Therefore, in other words, a new immigrant can have a maximum of 4 years and 90 days from the time the house is handed over.
In the first two cases (study visa and work permit), the Ministry of Finance must receive the application within 4 years of handover.
When applying for a tax refund, the buyer needs to provide:

  1. File Number for immigration application
  2. Maple Leaf Card

2) When applying for a tax refund, what documents do buyers need to provide to the government?
First of all, like other links in real estate transactions, when applying for redemption of overseas buyer’s tax, everyone should also ask lawyer friends to help.
The lawyer needs help to provide the following 4 documents:

  1. Ownership transfer documents at the time of house delivery (Registered Transfer)
  2. Proof of tax payment at the time of delivery
  3. A copy of the sales contract
  4. Statement of Adjustment (Statement of Adjustment)

The purchase purpose of overseas buyers must be for self-occupation, not investment, so as to meet the prerequisites for redemption of overseas buyer tax! ! !
In the process of applying for redemption, the buyer must provide proof of moving into the property for self-occupation within 60 days after the transfer, the most powerful proof is the driver’s license address!
If the customer is negligent and does not retain the proof of changing the driver’s license address within 60 days, when applying for redemption, he will encounter a lot of resistance from the Ministry of Finance and Taxation.

The following documents can be prepared together with the driver’s license. If there is no driver’s license change file, the following can be used instead: (However, which files can be prepared can not be generalized, and specific issues need to be analyzed by Case by Case!)

  1. Bank credit card or monthly account statement showing change of address within 60 days
  2. Service bills provided by the moving company
  3. Landline telephone bills, high-speed network bills

The following documents are not accepted as proof of residence:

  1. The utility bill of the property
  2. Land tax bill
  3. Letters related to bank mortgages

 

3) Under what circumstances can non-immigrant overseas buyer tax be exempted?
Of course, the overseas buyer tax is not effective for everyone.
People in the following situations are not required to pay overseas buyer tax:

  1. Buyers who take the provincial nomination channel OINP (Ontario Immigrant Nominee Program), when they get the provincial nomination confirmation number, they do not need to pay NRST to buy a house. An Ontario master’s degree student who passes the application after graduation will generally meet this requirement
  2. Refugees do not have to pay “overseas buyer tax”
  3. The spouse of a Canadian citizen or permanent resident does not need to pay “overseas buyer tax”
    This article is mainly aimed at situations where overseas buyers and non-overseas buyers share real estate. If both parties are husband and wife, even if one is not a local buyer, there is no need to pay NRST.
    However, it should be noted that if there are other overseas buyers in addition to the husband and wife, then 100% of the entire property must be paid for NRST. NRST.
  4. The spouse of 1. or 2. does not need to pay overseas buyer tax

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