Your Tax Obligations as a Non-Resident of Canada Throughout the Year
If you are not a resident of Canada for tax purposes at any point in a particular year, you generally have to file an Québec income tax return for the year to pay income tax on any income earned in the year or in a past year from:
- employment you held, or are deemed to have held, in Québec;
- a business you carried on in Québec whose income is derived, in whole or in part, from an establishment in Québec.
- taxable Québec property that you disposed of (sold, transferred, exchanged, gave, etc.).
If you sojourn in Québec for one or more periods in a year totalling at least 183 days, you are considered a deemed resident of Québec throughout the year. As a deemed resident, you will be subject to Québec income tax on your worldwide income from all sources for the entire year.
An individual (including a trust or succession) that does not reside in Canada and who disposes of taxable Québec property, such as an immovable located in Québec, must notify the Minister of Revenue of Québec within ten days of the actual disposition of the property. It is also possible to notify the Minister of the proposed disposition of such property, for example, after signing the purchase offer for the property.
To notify the Minister of a disposition or proposed disposition of taxable Québec property, you must generally file form TP-1097-V, Notice of Disposition or Proposed Disposition of Taxable Québec Property by an Individual or Corporation Not Resident in Canada.
For Québec resource property or Québec timber resource property, you must file form TP-1102.1-V, Notice of Disposition or Proposed Disposition of Property Covered by Section 1102.1 of the Taxation Act by an Individual or Corporation not Resident in Canada.
Individuals that do not file a notice of disposition within the allotted time are liable to a penalty of $25 per day, up to a maximum of $2,500. For more information, see Failure to File a Notice of Disposition of Taxable Québec Property by a Non-Resident Vendor.
If the property disposition generates a taxable capital gain and the non-resident vendor encloses an amount on account of tax payable or acceptable security with the notice of disposition, we will issue a Certificate in Respect of the Disposition or Proposed Disposition of Taxable Québec Property by a Person Not Resident in Canada (TPF-1098-V).
The certificate releases the purchaser from any liability for income tax stemming from the transaction.
If the property disposed of is a life insurance policy, you do not have to file a notice of disposition. However, the insurer must file form TP‑1102.3-V, Payment of Income Tax by an Insurer on Behalf of an Individual Not Resident in Canada Further to the Disposition of a Life Insurance Policy.