Disposition of taxable property by a non-resident of Canada: Tax obligations

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In the course of its control and awareness activities relating to the disposition (sale, transfer, exchange, gift, etc.) of taxable property by a non-resident of Canada, Revenu Québec noticed a certain unfamiliarity with the related tax obligations.

Below is some important information about these obligations:

  • Non-residents of Canada who dispose of taxable Quebec property must fill out and submit the Notice of Disposition or Proposed Disposition of Taxable Québec Property by an Individual or Corporation Not Resident in Canada (TP-1097-V) form in order to obtain a certificate of compliance. (Note that corporations established in Quebec must file the French version of this form.) The certificate relieves the purchaser of any liability for income tax arising from the transaction.

  • Furthermore, non-residents of Canada must generally file an income tax return for the taxation year in which the disposition took place. 

  • Lastly, the purchaser must remit a payment to Revenu Québec on behalf of the vendor if:
    • the non-resident vendor did not notify Revenu Québec of the disposition of the taxable property;
    • the non-resident vendor did not pay the amount on account of tax payable calculated in part 5 of the TP-1097-V/TP-1097 form;
    • the non-resident vendor did not provide Revenu Québec with acceptable security.

For more information, go to the Revenu Québec website, and more specifically, to the page titled Your tax obligations as a non-resident of Canada throughout the year.