PERSONAL TAX TRAINING

EFILE FOR NON-RESIDENTS

Starting with the **2023 tax year**, the **Canada Revenue Agency (CRA)** has expanded its electronic filing system, known as **EFILE**, to accommodate certain **non-resident individuals**. This update simplifies the tax filing process for **non-residents with Canadian tax obligations**.

Who is Eligible for EFILE?

Non-residents who meet the following criteria can now file **T1 Income Tax and Benefit Returns** electronically:

• Emigrants: Individuals who have **permanently left Canada** and need to file a **final tax return** for their departure year.
• Non-Residents Disposing of Taxable Canadian Property: Individuals who **sold taxable Canadian property** and must file under **Section 116 of the Income Tax Act (ITA)**.

Exclusions – Who Cannot Use EFILE?

While this update allows many non-residents to file electronically, **some returns are not eligible** for EFILE, including:

• Non-residents **filing for tax years prior to 2023**.
• Returns that include **specific forms** such as **T1243, T1244, T1161, or T2203**.
• Non-residents reporting income from **NR4 slips or T4A-NR slips**.

For a complete list of **exclusions**, visit the **CRA's official guidance**: CRA EFILE Exclusions.

How to File a Non-Resident T1 Return Electronically

To **EFILE** a non-resident tax return, follow these **five simple steps**:

1. Confirm Software Compatibility: Use **CRA-certified tax software** that supports **EFILE for non-residents**. Check CRA's EFILE software list.
2. Gather Required Documents: Ensure you have **income statements, property sale details, and relevant tax slips**.
3. Complete the T1 Return: Accurately enter all **taxable income, deductions, and property sale information**.
4. Submit via EFILE: Use the **certified tax software** to **electronically transmit** the return to the **CRA**.
5. Receive Confirmation: Keep the **EFILE submission receipt** as proof of successful filing.

Example Scenario

Example 1: **John, a former Canadian resident**, moved to the U.S. in **2023**. Since he worked in Canada for part of the year, he is required to file a **final tax return as an emigrant**. Thanks to the new **EFILE update**, John’s tax preparer can now **electronically file** his return instead of mailing a paper copy.

Example 2: **Maria, a non-resident**, sold her **rental property in Toronto** in 2023. She is required to report the sale under **Section 116 of the ITA**. Under the **new CRA update**, Maria can now **EFILE her return**, avoiding the delays of **paper filing**.

Key Benefits of EFILE for Non-Residents

• Faster Processing: Avoids **delays associated with paper returns**.
• Global Accessibility: Non-residents can **file from anywhere** without needing to mail documents.
• Secure Transmission: EFILE ensures **accurate, encrypted submission** to the CRA.
• Reduced Errors: CRA-certified **EFILE software minimizes mistakes**.

Additional CRA Resources

• CRA EFILE Program Updates
• List of Certified EFILE Software
• CRA EFILE for Non-Residents