If you are a non-resident of Canada and have had tax withheld that you have now discovered was too much because of a treaty, how do you get it back?
Well, that depends on the type of income the withholding was related to.
If it was employment income or business income you earned as a sole proprietor, you file a T1 individual income tax return and claim the refund.
If it was business income earned through a corporation you file a T2 Corporate tax return (be sure to include forms T2SCH91 Information Concerning Claims for Treaty Based Exemptions and T2SCH97 Additional Information on Non-resident corporations in Canada).
If it was withholding on passive income such as interest, dividends or rent, you file a NR7-R Application for Refund of Non-Resident Part XIII Tax Withheld.
In all cases you will need to provide documentation that you are resident in the country where you are claiming treaty exemption. In the US, use IRS form 8802.
Many countries (such as Canada) do not have a specific form and you must write to your tax authority and request confirmation.
Be sure to claim any refund within the refund deadline or you will no longer be eligible to receive it.
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