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The short answer
The NR4 is the Statement of Amounts Paid or Credited to Non-Residents of Canada: it shows the Canadian income paid to you as a non-resident and any non-resident tax withheld. Interest from a Canadian bank or other arm's-length payer is generally exempt from Canadian withholding, while interest that is subject to tax is withheld at 25% unless the Canada–Nigeria agreement reduces it to 12.5%.
What the NR4 is for
Canadian payers that pay certain income to non-residents withhold Part XIII tax, remit it, and report it on NR4 slips. CRA guide T4061 (modified September 2026) says the payer remits by the 15th of the month after the amount is paid or credited and files NR4 slips and the NR4 return by the last day of March. Your copy of the slip shows the type of income, the gross amount and the tax withheld.
For someone who has moved to Lagos or Abuja, the slip does two jobs: it confirms the Canadian tax treatment is settled, and it is the evidence of Canadian tax paid when Nigeria taxes the same income.
When Canadian interest is taxed, and when it is not
| Type of interest | Canadian non-resident tax |
|---|---|
| Interest from a Canadian bank, GIC or other payer dealing at arm's length with you | Generally exempt from withholding (CRA guide T4058) |
| Interest from a non-arm's-length payer, such as a company you control or a relative's business | 25% under Part XIII, reduced to 12.5% by Article 11 of the Canada–Nigeria agreement |
So many people living in Nigeria will see little or no Canadian tax on ordinary bank interest. Whether a bank issues an NR4 for exempt interest depends on its reporting obligations under T4061; if you receive one, check box by box that the tax withheld is nil or correct.
Tell the bank you have left
The CRA's Leaving Canada page says you are required to notify Canadian payers and financial institutions that you are no longer resident. Until you do, the bank will keep issuing resident T5 slips. Once you have, it applies non-resident rules and NR4 reporting.
Other income that appears on an NR4
Interest is only one line. T4061 says Part XIII tax at 25% applies to rents, royalties, interest, dividends and pensions paid to non-residents unless the Act or a treaty reduces it, and T4058 adds RRSP and RRIF payments and annuities. For a Nigeria resident:
- Dividends from Canadian companies: 25%, reduced by the agreement to 15%, or 12.5% for a company holding at least 10% of the voting power.
- Pensions and annuities: Article 18 lets Canada tax them under its own law without a percentage cap, so the domestic rate generally applies.
- Rent: 25% of gross unless you use the NR6 and section 216 route.
Each payer issues its own slip, so a person with a bank account, a brokerage account and a pension may receive three NR4s for the same year.
Getting the treaty rate where tax applies
Where interest is subject to Part XIII tax, the payer applies the full 25% unless it holds evidence you are entitled to a treaty rate. T4061 refers to Forms NR301, NR302 and NR303 for that purpose; an individual normally completes NR301 for the payer. If too much was withheld, T4058 refers to Form NR7-R for a refund, which must be applied for within two years.
Worked example (illustrative figures only)
An Abuja resident lent C$40,000 to a Canadian company controlled by his brother at 5% a year. Interest for the year is C$2,000.
- No treaty form on file: 25% withheld, C$500. The NR4 shows C$2,000 gross and C$500 tax.
- NR301 on file: 12.5% withheld, C$250. The NR4 shows C$2,000 gross and C$250 tax.
- If C$500 was withheld when C$250 was due, the C$250 excess can be reclaimed on NR7-R within two years.
Using the NR4 for Nigerian tax
Under the Nigeria Tax Act 2025, PwC's summary says a Nigerian resident's income is taxable wherever it arises, and foreign tax already paid may be credited against Nigerian tax. The NR4 is your proof of Canadian tax for that credit. Only the tax properly due under the agreement should be credited; over-withholding is a matter for an NR7-R claim in Canada.
PwC's income determination summary also describes an exemption for interest, dividends, rent and royalties brought into Nigeria in convertible currency through government-approved channels into an account with an approved bank. Whether Canadian interest you repatriate qualifies depends on the facts, so keep the NR4, the bank's transfer record and the Nigerian credit advice together and ask a Nigerian adviser before relying on it.
What to check first
- Notify every Canadian bank and payer of your non-residence and your Nigerian address.
- For interest from a related payer, give them NR301 so the treaty rate applies.
- Check each NR4 when it arrives by the end of March.
- Keep NR4s with your Nigerian return working papers.
Related reading: Canadian dividends paid to a Nigeria resident and your Canadian return after moving to Nigeria. This is general information, not tax advice.
Where Pryme fits
Interest paid in Canadian dollars still has to reach you in Nigeria. A Pryme account holds NGN alongside USD, GBP and EUR, Swap shows the rate and fee before you approve, and verifiable statements through our partner VerifyDoc.ai (receipts and statements) help document the money trail.
Questions people ask
What is an NR4 slip?
The Statement of Amounts Paid or Credited to Non-Residents of Canada. It shows Canadian income paid to a non-resident and the non-resident tax withheld.
Is interest from my Canadian bank taxed after I move to Nigeria?
Interest from an arm's-length payer such as a bank is generally exempt from Canadian withholding tax, according to CRA guide T4058.
What is the treaty rate on Canadian interest for a Nigeria resident?
Article 11 of the Canada–Nigeria agreement limits tax on interest to 12.5%, against the standard 25% Part XIII rate.
How do I get back tax withheld at 25% instead of 12.5%?
Apply on Form NR7-R within two years, as described in CRA guide T4058.
Sources
- CRA T4061, NR4 – Non-Resident Tax Withholding, Remitting and Reporting (modified 22 Sep 2026) · accessed Oct 2026
- CRA T4058, Non-Residents and Income Tax 2025 (modified 20 Jan 2026) · accessed Oct 2026
- Canada–Nigeria tax agreement (signed Abuja, 4 Aug 1992), Global Affairs Canada treaty database · accessed Oct 2026
- CRA, Leaving Canada (emigrants) (modified 17 Sep 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries, Nigeria – Taxes on personal income (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries, Nigeria – Income determination (reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.