AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
As a non-resident, your Canadian tenant or agent must withhold 25% of the gross rent. Filing a section 216 return (Form T1159) lets you pay tax on net rent after expenses instead, often producing a refund. Without an NR6, the 2025 return is due within two years of the end of the year; with an approved NR6 it was due by 30 June 2026.
The default: 25% of gross rent
Once you are non-resident, rent from Canadian property is subject to non-resident tax. The CRA guide T4144 (modified January 2026) says the payer or agent "must withhold non-resident tax of 25% on the gross rental income paid or credited to you." Expenses do not come into it. On a Mississauga condo let at $2,400 a month, that is $600 withheld every month whether or not the property makes a profit.
Section 216 of the Income Tax Act gives you a choice. T4144 says that sending the CRA a separate return for rental income from Canadian real property is "called electing under section 216", and that it lets you pay tax on net rent instead of gross. The return is Form T1159.
Deadlines for the 2025 tax year
| Your situation | Section 216 return due |
|---|---|
| No NR6 filed (tax withheld on gross rent) | Within two years from the end of the year the rent was paid or credited: 31 December 2027 for 2025 rent |
| NR6 approved (tax withheld on net rent) | 30 June 2026 |
| You disposed of the property and there is recapture of capital cost allowance | 30 April 2026, whether or not you filed an NR6 |
| Balance owing | 30 April 2026 |
Miss the date and T4144 says "your election will be invalid". With an approved NR6, you then owe tax on the gross rent, plus interest, as if you had never elected.
Worked example (illustrative figures only)
A former Edmonton resident, now living in Abuja, lets her townhouse for $2,000 a month. Her agent withholds 25% of gross rent with no NR6 in place.
| Item for the year | C$ |
|---|---|
| Gross rent | 24,000 |
| Non-resident tax withheld at 25% | 6,000 |
| Expenses: property tax, insurance, mortgage interest, management, repairs | 15,000 |
| Net rental income on the section 216 return | 9,000 |
On the T1159 she calculates federal tax, including the surtax for non-residents, on $9,000 of net rent. If that tax is lower than the $6,000 withheld, T4144 says "the CRA will refund the difference to you", apart from amounts of $2 or less, and it may apply the refund to other amounts owed. The exact tax depends on the rates for the year, so it is not shown here.
How to file
- Gather the two copies of the NR4 slip your agent or tenant gives you, showing gross rent and tax withheld. T4144 says to attach one copy and report the total from box 17 on line 43700; without the slips the CRA may disallow the credit.
- Prepare the rental statement: gross rent and each expense. The CRA rental guide T4036 sets out which costs are current and which are capital.
- Complete Form T1159. T4144 describes calculating federal tax, including the non-resident surtax, on line 18.
- Send it to the right tax centre. T4144 lists Winnipeg for residents of Denmark, France, the Netherlands, the UK or the US, and the Sudbury Tax Centre (1050 Notre Dame Ave, Sudbury ON P3A 5C2) for residents of any other country, which includes Nigeria.
- Pay any balance in Canadian dollars; T4144 lists options including a wire transfer or an international money order in Canadian dollars, and cheques are made payable to the Receiver General.
Points that catch people out
- A loss on the section 216 return cannot be used to reduce income on any other Canadian return.
- Capital cost allowance claimed in earlier years can come back as recapture when you sell, which brings forward the filing date.
- Selling the property has its own process; see selling your Canadian home after moving to Nigeria.
Nigeria's side
Once resident in Nigeria, you are taxed there on worldwide income. PwC's summary of Nigerian personal income tax says foreign tax already paid may be credited against Nigerian tax. The Canada–Nigeria agreement lets Canada tax rent from property situated in Canada (Article 6). Keep the T1159 assessment and NR4 slips; they show the Canadian tax actually borne, which is the figure Nigeria should credit. PwC also describes an exemption for rent brought into Nigeria in convertible currency through government-approved channels into an account with an approved bank; ask a Nigerian adviser whether it applies to you.
To cut withholding during the year instead of waiting for a refund, see the NR6 undertaking. This is general information, not tax advice.
Where Pryme fits
Canadian rent arrives in Canadian dollars; spending it in Nigeria means a conversion at some point. With a Pryme account you hold naira alongside USD, GBP and EUR, and Swap shows the rate and the fee before you approve.
Questions people ask
What is a section 216 return?
Form T1159, a separate Canadian return a non-resident can file to pay tax on net Canadian rental income instead of the 25% withheld on gross rent.
When is the section 216 return due?
For 2025 rent: within two years of the end of the year (31 December 2027) without an NR6; by 30 June 2026 with an approved NR6; by 30 April 2026 if you sold and have recapture.
Where do I send a T1159 from Nigeria?
The Sudbury Tax Centre, which T4144 lists for residents of countries other than Denmark, France, the Netherlands, the UK and the US.
Can a rental loss reduce my other Canadian income?
No. T4144 says a loss reported on a section 216 return cannot reduce income on another Canadian return.
Sources
- CRA T4144, Income Tax Guide for Electing under Section 216 (modified 20 Jan 2026) · accessed Oct 2026
- CRA T4058, Non-Residents and Income Tax 2025 (modified 20 Jan 2026) · accessed Oct 2026
- CRA T4036, Rental Income guide · accessed Oct 2026
- Canada–Nigeria tax agreement (signed Abuja, 4 Aug 1992), Global Affairs Canada treaty database · 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.