Tax wiki
s. 217
PART XIII — Tax on Income from Canada of Non-resident Persons
Alternative re Canadian benefits
Not yet annotated · Text current to 2026-06-21 · section last amended 2017-01-01
Current text
In this section, a non-resident person’s “Canadian benefits” for a taxation year is the total of all amounts each of which is an amount paid or credited in the year and in respect of which tax under this Part would, but for this section, be payable by the person because of any of paragraphs 212(1)(h), (j) to (m) and (q).
Part I return
(2)No tax is payable under this Part in respect of a non-resident person’s Canadian benefits for a taxation year if the person
files with the Minister, within 6 months after the end of the year, a return of income under Part I for the year; and
elects in the return to have this section apply for the year.
Taxable income earned in Canada
(3)Where a non-resident person elects under paragraph (2)(b) for a taxation year, for the purposes of Part I
the person is deemed to have been employed in Canada in the year; and
the person’s taxable income earned in Canada for the year is deemed to be the greater of
the amount that would, but for subparagraph (ii), be the person’s taxable income earned in Canada for the year if
paragraph 115(1)(a) included the following subparagraph after subparagraph (i):
the non-resident person’s Canadian benefits for the year, within the meaning assigned by subsection 217(1),”, and
paragraph 115(1)(f) were read as follows:
such of the other deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs (a)(i) to (vi).”; and
the person’s income (computed without reference to subsection 56(8)) for the year minus the total of such of the deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).
Tax credits — limitation
(4)Sections 118 to 118.91 and 118.94 do not apply in computing the tax payable under Part I for a taxation year by a non-resident person who elects under paragraph (2)(b) for the year, unless
where section 114 applies to the person for the year, all or substantially all of the person’s income for the year is included in computing the person’s taxable income for the year; or
in any other case, all or substantially all of the person’s income for the year is included in computing the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
Tax credits allowed
(5)In computing the tax payable under Part I for a taxation year by a non-resident person to whom neither paragraph (4)(a) nor paragraph (4)(b) applies for the year there may, notwithstanding section 118.94 and subsection (4), be deducted the lesser of
the total of
such of the amounts that would have been deductible under any of section 118.2, subsections 118.3(2) and (3) and sections 118.8 and 118.9 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, as can reasonably be considered wholly applicable, and
the amounts that would have been deductible under any of sections 118 and 118.1, subsection 118.3(1) and sections 118.5 and 118.7 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, and
the appropriate percentage for the year of the person’s Canadian benefits for the year.
Special credit
(6)In computing the tax payable under Part I for a taxation year by a non-resident who elects under paragraph (2)(b) for the year, there may be deducted the amount determined by the formula
A × [(B - C) / B]
where
is the amount of tax under Part I that would, but for this subsection, be payable by the person for the year;
is the amount determined under subparagraph (3)(b)(ii) in respect of the person for the year; and
is the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2004-08-31 to 2016-12-31:
Show the text in force 2004-08-31 to 2016-12-31
Alternative re Canadian benefits
217 (1) In this section, a non-resident person’s “Canadian benefits” for a taxation year is the total of all amounts each of which is an amount paid or credited in the year and in respect of which tax under this Part would, but for this section, be payable by the person because of any of paragraphs 212(1)(h), (j) to (m) and (q).
Part I return
(2) No tax is payable under this Part in respect of a non-resident person’s Canadian benefits for a taxation year if the person
(a) files with the Minister, within 6 months after the end of the year, a return of income under Part I for the year; and
(b) elects in the return to have this section apply for the year.
Taxable income earned in Canada
(3) Where a non-resident person elects under paragraph (2)(b) for a taxation year, for the purposes of Part I
(a) the person is deemed to have been employed in Canada in the year; and
(b) the person’s taxable income earned in Canada for the year is deemed to be the greater of
(i) the amount that would, but for subparagraph (ii), be the person’s taxable income earned in Canada for the year if
(A) paragraph 115(1)(a) included the following subparagraph after subparagraph (i):
“(i.1) the non-resident person’s Canadian benefits for the year, within the meaning assigned by subsection 217(1),”, and
(B) paragraph 115(1)(f) were read as follows:
“(f) such of the other deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).”; and
(ii) the person’s income (computed without reference to subsection 56(8)) for the year minus the total of such of the deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).
Tax credits — limitation
(4) Sections 118 to 118.91 and 118.94 do not apply in computing the tax payable under Part I for a taxation year by a non-resident person who elects under paragraph (2)(b) for the year, unless
(a) where section 114 applies to the person for the year, all or substantially all of the person’s income for the year is included in computing the person’s taxable income for the year; or
(b) in any other case, all or substantially all of the person’s income for the year is included in computing the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
Tax credits allowed
(5) In computing the tax payable under Part I for a taxation year by a non-resident person to whom neither paragraph (4)(a) nor paragraph (4)(b) applies for the year there may, notwithstanding section 118.94 and subsection (4), be deducted the lesser of
(a) the total of
(i) such of the that would have been deductible under any of section 118.2, subsections 118.3(2) and 118.3(3) and sections 118.6, 118.8 and 118.9 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, as can reasonably be considered wholly applicable, and
(ii) the amounts that would have been deductible under any of sections 118 and 118.1, subsection 118.3(1) and sections 118.5 and 118.7 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, and
(b) the appropriate percentage for the year of the person’s Canadian benefits for the year.
Special credit
(6) In computing the tax payable under Part I for a taxation year by a non-resident who elects under paragraph (2)(b) for the year, there may be deducted the amount determined by the formula
A × [(B - C) / B]
where
Ais the amount of tax under Part I that would, but for this subsection, be payable by the person for the year;Bis the amount determined under subparagraph (3)(b)(ii) in respect of the person for the year; andCis the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 217
- 1994, c. 7, Sch. II, s. 179
- 1996, c. 21, s. 56
- 1997, c. 25, s. 64
- 1998, c. 19, s. 64
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 217 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 217; 1994, c. 7, Sch. II, s. 179; 1996, c. 21, s. 56; 1997, c. 25, s. 64; 1998, c. 19, s. 64; 2016, c. 7, s. 45
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 217.