T4155 - Old Age Security Return of Income Guide for Non-Residents

T4155(E) Rev. 16

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Table of contents

• Is this guide for you?
• Before you start
  • What is the purpose of the Old Age Security Return of Income?
  • What is recovery tax, and does it apply to you?
  • What is net world income?
  • Do you have to file the Old Age Security Return of Income?
  • When is your return due?
  • Do you have to file another 2016 Canadian return?
• Completing your Old Age Security Return of Income
  • Identification
  • Income
  • Deductions
  • Refund or balance owing
• After you file
  • What happens to your return after we receive it?
  • How to change a return?
  • What should you do if you move?
• Online services
  • My Account
  • MyCRA - Mobile app
• For more information
  • Service complaints
  • Reprisal complaint
• Contact the CRA
  • By telephone
  • By mail

Is this guide for you?

This guide is for you if you are a non-resident of Canada and you are receiving old age security (OAS) payments. This guide will help you complete your 2016 Old Age Security Return of Income.

Before you start

What is the purpose of the Old Age Security Return of Income?

We use the information you provide on this return to determine if your old age security (OAS) payments are subject to recovery tax. The amount of recovery tax is calculated using the net world income that you report on this return.

If your net world income for 2016 was more than CAN$73,756, we will calculate the amount of recovery tax that applies to your OAS payments for 2016. We will also calculate the amount of recovery tax to be withheld from your July 2017 to June 2018 monthly OAS payments.

If recovery tax was withheld from your OAS payments in 2016, and the amount withheld was more than the recovery tax you owe, or you are not subject to recovery tax, we will refund the difference or apply it to any other Canadian tax obligation you may have. If the recovery tax withheld was less than the recovery tax you owe, you will have to pay the difference.

What is recovery tax, and does it apply to you?

Recovery tax is an additional tax that is used to repay all or part of the OAS payments received by higher-income pensioners.

This tax is 15% of the amount by which a pensioner's net world income is more than CAN$73,756.

Recovery tax is in addition to non-resident tax; however, if non-resident tax is withheld from OAS payments, the recovery tax will be reduced accordingly. The two taxes cannot add up to more than the total old age security pension received.

What is net world income?

Net world income is the total of all the income you are paid or credited in a year from Canadian or foreign sources (when we refer to foreign source, we are referring to sources outside of Canada), minus allowable deductions. It includes income from employment, business, pensions, social security, capital gains, rental property, interest, and dividends.

Do you have to file the Old Age Security Return of Income?

To ensure that your OAS payments are not suspended, you have to file this return even if your net world income is less than CAN$73,756.

However, you do not have to file this return if, in 2016, you were a resident of one of the following countries and you have no plans to move to a non-listed country before July 1, 2018:

• Argentina
• Australia
• Azerbaijan
• Bangladesh
• Barbados
• Bulgaria
• Colombia
• Cyprus
• Dominican Republic
• Ecuador
• Finland
• Germany
• Greece
• Hungary
• Ireland
• Israel
• Ivory Coast
• Kenya
• Malaysia
• Malta
• Mexico
• New Zealand
• Norway
• Papua New Guinea
• Peru
• Poland
• Portugal
• Romania
• Senegal
• Serbia
• Spain
• Sri Lanka
• Switzerland
• Tanzania
• Trinidad and Tobago
• Turkey
• United Kingdom
• United States
• Zambia
• Zimbabwe

If you were a resident of Brazil in 2016 and you are a Brazilian national, you do not have to file this return.

If you were a resident of the Philippines in 2016 and your 2016 Canadian pensions totalled $5,000 or less, you do not have to file this return.

When is your return due?

Your 2016 Old Age Security Return of Income has to be filed on or before April 30, 2017.

Exception to the due date of your return

When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, we consider your return filed on time if we receive it or if it is postmarked on or before the next business day. For more information, go to Important dates for 2016.

If you owe recovery tax for 2016 (line 485 of your return) and you file your return late, we will charge you a late-filing penalty. The penalty is 5% of your balance owing for 2016, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.

Do you have to file another 2016 Canadian return?

The Old Age Security Return of Income only determines the recovery tax on your OAS payments. You may have to file another 2016 Canadian return.

For example, if you filed Form NR5, Application by a non-resident of Canada for a reduction in the amount of non-resident tax required to be withheld, for the year with the intention of making a section 217 election and we approved it, you must file a return under section 217 of the Income Tax Act. Also, if you received employment or business income from Canada or if you have taxable capital gains from disposing of taxable Canadian property, you may have to file a T1 General Income Tax and Benefit return.

Completing your Old Age Security Return of Income

Complete the Old Age Security Return of Income (T1136). Mail one copy to the CRA, and keep one for your records.

You must file this return on an individual basis. If both you and your spouse or common-law partner receive the old age security pension, each of you must complete a separate return.

Identification

Complete the entire "Identification" area by following the instructions on the return. If you give incomplete or incorrect identification information, the processing of your return may be delayed.

Email address

If you would like to get your CRA mail online, read and agree to the terms and conditions that follow, and enter your email address. You can also register online using My Account and selecting the "Manage online mail" service.

Terms and conditions – By providing an email address, you are registering for online mail and authorizing the CRA to send you email notifications when there is mail for you to view in My Account. To access your online mail, you must be registered for My Account. Any notices and correspondence delivered online in My Account will be presumed to have been sent on the date of those email notifications. You understand and agree that your notice of assessment and notice of reassessment, and any other correspondence eligible for online delivery, will no longer be mailed.

For more information, go to You’ve got online mail in My Account.

Social insurance number

Give both your and your spouse's or common-law partner's Canadian social insurance numbers (SIN), individual tax numbers (ITN) or temporary tax numbers (TTN). If you asked for but have not yet received a SIN, or ITN, and the deadline for filing your return is near, file your return without your SIN or ITN. Attach a note to your return to let us know.

If you are not eligible for a SIN, complete and send us Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents, if you have not already done so.

Person deceased in 2016

If you are filing this return for an individual who died during the year, provide their date of death. In the case of death, OAS payments cease and are not paid to the estates of deceased persons.

Marital status

Tick the box that applied to your status on December 31, 2016.

Tick “Married” if you had a spouse or “Living common-law” if you had a common-law partner. You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Tick one of the other boxes only if neither of the first two applied.

Spouse - This applies only to a person to whom you are legally married.

Common-law partner - This applies to a person who is not your spouse (see above), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

1. has been living with you in a conjugal relationship and this current relationship has lasted for at least 12 continuous months;

   Note
   In this definition, 12 continuous months includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

2. is the parent of your child by birth or adoption; or
3. has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

Your old age security number

Enter your Canadian old age security number if it has not been pre-printed. You can find this number on your NR4-OAS-slip in the box called "Old age security number".

Income

Report all income in Canadian dollars. To calculate how much to report, multiply your income by the exchange rate in effect on the day you received the income. If the amount was paid at various times in the year, visit the Bank of Canada Web site, or contact the CRA to get an average annual rate.

Line 113 - Old age security pension

Report your OAS pension income. This amount is shown in:

• box 16 of your NR4-OAS slip;
• box 16 or 26 of your NR4 slip, if this slip has income code 44 in box 14 or 24; or
• box 18 of your T4A(OAS) slip.

You may have received net federal supplements shown either in box 21 of your T4A(OAS) slip, or in box 16 or 26 of your NR4 slip, if this slip has income code 45 in box 14 or 24. If so, add the amount of the supplement to your OAS pension. Then enter the total on line 113.

Line 114 - Canada or Quebec Pension Plan benefits

Report your Canada Pension Plan or Quebec Pension Plan benefits shown in box 16 or 26 of your NR4 slip, if the slip has income code 46 or 49 in box 14 or 24.

The amount may also be shown in box 20 of your T4A(P) slip.

Line 115 - Other pensions or superannuation

Report any other pensions or superannuation you received from Canadian or foreign sources and any foreign-source social security payments. These payments include income from:

• annuities;
• deferred profit-sharing plans; or
• registered retirement income funds.

Line 121 - Interest and other investment income

Use the worksheet to calculate your interest income, taxable dividend income, and capital gains or losses. Attach a separate sheet of paper, if you need more space.

Interest and dividend income

Report all Canadian and foreign-source interest that was paid or credited to you in 2016. This includes interest income from bank accounts, term deposits, guaranteed investment certificates (GICs), and other similar investments.

You also have to report interest on any tax refund you received in 2016, which is shown on your notice of assessment or notice of reassessment.

Report all taxable dividend income from taxable Canadian corporations. You must calculate the taxable amount of "other than eligible dividends" by multiplying the actual amount of "other than eligible dividends" you received by 117%. You must also calculate the taxable amount of eligible dividends by multiplying the actual amount of eligible dividends you received by 138%. If your form does not show the breakdown between eligible dividends and other than eligible dividends, contact your payer. In addition, report all dividends from foreign sources.

Even if you did not receive an information slip, report any Canadian or foreign-sourced interest or dividend income that was paid or credited to you in the year.

Capital gains

A capital gain or loss usually occurs when you sell or dispose of property, such as real estate or shares. Capital losses can reduce capital gains. However, to determine your net world income, you cannot use capital losses to reduce other sources of income, including interest and other investment income.

If you sold or disposed of property in 2016 and your capital gains for the year exceeded your capital losses, you have to include a percentage of the difference at line 121 of your return. For 2016, the inclusion rate for capital gains realized is generally 50%.

If you disposed of property in 2016, you will need to know the following three amounts to calculate any capital gain or loss:

• the proceeds of disposition;
• the adjusted cost base; and
• the outlays and expenses you incurred when disposing of your property.

The proceeds of disposition is usually the amount you received or will receive for your property. In most cases, it refers to the sale price of the property. It could also include compensation you received for property that was destroyed, expropriated, or stolen.

The adjusted cost base is usually the cost of your property, plus any expenses to acquire it, such as commissions and legal fees. You have to adjust the cost of your property to include capital expenditures, such as the cost of additions and improvements to the property.

Outlays and expenses are amounts that you incurred to sell a capital property. You can deduct outlays and expenses from your proceeds of disposition when you calculate your capital gain or loss. These types of expenses include fixing-up expenses, finders' fees, commissions, brokers' fees, surveyors' fees, legal fees, transfer taxes, and advertising costs. You cannot reduce your other income by claiming a deduction for these outlays and expenses.

For more information on capital gains and losses, see Guide T4037, Capital Gains. You can get this guide at Forms and publications, or by contacting the CRA.

Line 126 - Net rental income

Report your Canadian and foreign-source net rental income or loss for the 2016 calendar year. You should also include any amount that a partnership allocated to you in its financial statements. If you have a loss, show the amount in brackets.

Line 129 - Registered retirement savings plan income

Report the total amount of income you received from your registered retirement savings plans (RRSPs) in 2016 shown on your T4RSP or NR4 information slips.

Line 130 - Other income

Report all other Canadian and foreign-source income for which there is not a line listed on the return. In the space to the left of line 130, specify the type of income you are reporting. If you have more than one type of income, attach a note giving the details.

Other types of income might include:

• employment income;
• lump-sum payments from pensions and deferred profit-sharing plans;
• employment insurance benefits;
• social assistance payments;
• workers' compensation payments;
• support payments received;
• retiring allowances, including severance pay;
• death benefits;
• payments from a trust;
• tips or gratuities;
• amounts distributed from a retirement compensation arrangement;
• net partnership income or loss from a Canadian or foreign partnership
  (limited or non-active partners); or
• any other type of taxable income that you have not reported elsewhere on the return.

Line 135 - Net business income

Report your Canadian and foreign-source net income or loss from a business or profession. If you have a loss, show the amount in brackets.

Deductions

Line 221 - Carrying charges and interest expenses

Claim the total amount of carrying charges and interest expenses you paid to earn income from investments.

Carrying charges and interest expenses include the following:

• fees to manage or take care of investments;
• fees for certain investment advice or for recording investment income; and
• most interest you pay on money you borrow for investment purposes, but generally only if you use it to try to earn investment income, including interest and dividends.

You cannot claim any brokerage fees or commissions you paid when you bought or sold securities. Instead, use these costs when you calculate your capital gain or loss.

Line 232 - Other deductions

Your claim at line 232 cannot be more than what you could claim if you were a resident of Canada. Specify the deduction you are claiming in the space to the left of line 232. If you have more than one amount, or to explain your deduction more fully, attach a note to your return.

You can claim certain amounts from your total world income including the following:

• contributions to a registered pension plan (RPP) or a registered retirement savings plan (RRSP) in Canada;
• annual Canadian union, professional, or like dues;
• the deductible amount of support payments made;
• Canadian exploration and development expenses; and
• certain expenses you paid to earn employment or commission income.

If, in 2016, you repaid amounts you received and reported as income, you can claim them on this return. Attach receipts or other documents showing the amounts you paid back. For example, you can claim repayments of:

• employment insurance benefits;
• OAS pension;
• Canada Pension Plan benefits or Quebec Pension Plan benefits; and
• retiring allowances, including severance pay.

You can claim legal fees you incurred:

• for advice or assistance in responding to the CRA when we reviewed your income or tax for a year, or in appealing or objecting to an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan, plus any related accounting fees;
• for advice or assistance in appealing or objecting to an assessment of income tax, interest, or penalties levied by a foreign government, if the tax is eligible for a foreign tax credit on a Canadian income tax return; and
• to collect late support payments that you will include in your income. For more information, go to Support payments.

You must reduce your claim by any award or reimbursements you received for these expenses. If you are awarded the cost of your deductible legal fees in a future year, report that amount in your income for that year.

If you are not certain whether a deduction is allowable, contact the CRA at the address or telephone numbers at the bottom of this page for help.

Refund or balance owing

Line 235 - Old age security recovery tax

This line applies to you only if your net world income on line 242 of your return is more than CAN$73,756. If so, complete the chart below to calculate the recovery tax. However, if any of the following situations apply to you, do not complete this chart and, instead, contact the CRA for the special rules and calculation to apply in these situations:

• you immigrated to Canada or emigrated from Canada in 2016 and you received OAS payments during the part of the year that you were a non-resident;
• you received OAS payments throughout 2016, and you were a resident of one of the countries listed at Do you have to file the Old Age Security Return of Income? for part of 2016 and for the other part of that year you were resident in a non-listed country; or
• you were a resident of the Philippines in 2016.

Line 437 - Recovery tax withheld

Claim only the amount of recovery tax from box 27 of your NR4-OAS slip. Attach a copy of the information slip to your return.

Line 484 - Refund

If you are expecting a refund of recovery tax and our records show that you owe an amount, or are about to owe an amount for another year, we may keep some or all of your refund and apply it against the amount you owe.

Line 485 - Balance owing

If you have a balance owing of more than $2, and have a bank account at a financial institution in Canada, you can make your payment:

• online by using your financial institution’s online banking or telephone banking services;
• online by using the CRA’s My Payment service; or
• by setting up a pre-authorized debit agreement using the My Account service; or
• in person at your financial institution in Canada. To do so, you have to use a remittance voucher, which you can request from My Account or by contacting us.

If you do not have a bank account at a financial institution in Canada, you can send your payment using:

• a wire transfer in Canadian dollars;
• an international money order drawn in Canadian dollars; or
• a bank draft in Canadian funds drawn on a Canadian bank.

For more information, go to Make a payment to the Canada Revenue Agency or contact your financial institution.

If you want to mail your payment to the CRA, attach it to the front of your return. Make sure it is made out to the Receiver General. Write your social insurance number, temporary tax number, or individual tax number on the payment to help us process it correctly.

Do not mail us cash or include it with your return.

You can file your return early and make your payment as late as April 30, 2017. If we process your return before the date of the payment, your payment will appear on your notice of assessment, but it will not reduce your balance owing. We will credit your account on the date of the payment.

We will charge you a fee for any payment not honoured by your financial institution.

Making a payment arrangement - If you cannot pay your balance owing on or before April 30, 2017, we may accept a payment arrangement only after you have reasonably tried to get the necessary funds by borrowing or rearranging your finances.

If you cannot pay the balance in full, you should contact us. We will still charge daily compound interest on any outstanding balance starting May 1, 2017, until you pay your balance in full.

After you file

What happens to your return after we receive it?

When we receive your return, we usually review it based on the information you provide and send you a notice of assessment based on that review. The notice will tell you if you have any refund or balance owing of recovery tax for 2016. The notice will also tell you if recovery tax will be withheld from your OAS monthly payments for the period from July 2017 to June 2018.

How to change a return

After you have mailed your Old Age Security Return of Income, you only need to notify us of a change if:

• your 2016 net world income is more than CAN$73,756;
• the change will increase your 2016 net world income to more than CAN$73,756; or
• the change applies to the amount of recovery tax withheld you reported at line 437.

To make a change to a return you have sent us, send a signed letter to the International and Ottawa Tax Services Office explaining what changes you are requesting. Include the years of the returns to be changed, your social insurance number, individual tax number, or temporary tax number, your address, and a telephone number where we can reach you during the day. Do not file a new Old Age Security Return of Income for the tax year.

What should you do if you move?

If you move, let us know your new address as soon as possible to make sure any correspondence is sent to the proper address.

If you have registered with our My Account or MyCRA service, you can change your address by going to My Account or Mobile apps. If you are writing, send your letter to the International and Ottawa Tax Services Office. Sign it, and include your social insurance number, individual tax number, or temporary tax number, your new address, and the date of your move. If you are writing for another person, including your spouse or common-law partner, include the person's social insurance number, individual tax number, or temporary tax number, and have the person sign the letter authorizing the change to his or her records.

Online services

My Account

Using the CRA’s My Account service is a fast, easy, and secure way to access and manage your tax and benefit information online, seven days a week.

To register go to My Account. Registration is a two-step process. You will be asked to enter some personal information and create a user ID and password or use a Sign in Partner. Be sure to have your current and previous year’s personal tax returns on hand. To register, a return for one of these two years must have been assessed. After you complete step one, you will have instant access to some of your tax and benefit information. Step two includes the mailing of the CRA security code. We will mail it to the address we have on file for you. The separate mailing of the security code is a measure used to protect you from identity theft and to ensure the security of your personal information. You will have access to the full suite of services available in My Account once you enter your code.

An authorized representative can access most of these online services through Represent a Client.

MyCRA – Mobile app

Getting ready to file? Use MyCRA to:

• check your RRSP deduction limit;
• look up a local tax preparer; and
• see what tax filing software the CRA has certified.

Done filing? Use MyCRA to:

• check the status of your tax return; and
• view your notice of assessment.

Use MyCRA throughout the year to:

• view your personalized benefit and credit payment amounts;
• check your TFSA contribution room;
• update your contact details;
• manage your direct deposit and online mail information; and
• request your proof of income (option C).

To get more details on what you can do with MyCRA and to access the CRA’s web-based mobile app, go Mobile apps

For more information

If you need more information after reading this guide, visit our website, or contact us.

If you have any questions about your old age security pension (for example, to calculate your payment or to report a lost cheque), contact Service Canada at:

International Operations
Service Canada
PO Box 2710 Stn Main
Edmonton AB T5J 2G4

You can also contact Service Canada by telephone at the following numbers:

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the Canada Revenue Agency (CRA); see the Taxpayer Bill of Rights.

If you are not satisfied with the service you received, try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the CRA’s correspondence. If you do not have contact information, go to contact.

If you still disagree with the way your concerns were addressed, you can ask to discuss the matter with the employee’s supervisor.

If you are still not satisfied, you can file a service complaint by filling out Form RC193, Service-Related Complaint. For more information, go to Make a service Complaint.

If the CRA has not resolved your service-related complaint, you can submit a complaint with the Office of the Taxpayers’ Ombudsman.

Reprisal complaint

If you believe that you have experienced reprisal, fill out Form RC459, Reprisal Complaint.

For more information, go to Reprisal Complaints.

To contact the CRA

By telephone

Calls from Canada and the U.S.: 1-800-959-8281

Regular hours of service

Monday to Friday (holidays excluded)
9:00 a.m. to 5:00 p.m. (local time)

Extended hours of service

From February 20 to May 1, 2017, except Easter weekend
From 9:00 a.m. to 9:00 p.m. (local time) on weekdays
From 9:00 a.m. to 5:00 p.m. (local time) on Saturdays

Calls from outside Canada and the U.S.: 1-613-940-8495

We accept collect calls by automated response. You may hear a beep and experience a normal connection delay.

Regular hours of service

Monday to Friday (holidays excluded)
9:00 a.m. to 5:00 p.m. (Eastern time)

Extended hours of service

From February 20 to May 1, 2017, except Easter weekend
From 9:00 a.m. to 9:00 p.m., Eastern time, on weekdays
From 9:00 a.m. to 5:00 p.m., Eastern time, on Saturdays

Fax number: 613-941-2505

By mail

International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

Date modified:

2017-01-04