Learn how to Read an NR4 Form

Understanding your NR4 isn’t just about checking what you earned. It’s about knowing how Canadian income earned while living abroad is taxed, how much was withheld, and how it fits into your wider financial and tax strategy. If you're a non-resident of Canada receiving Canadian-source income — such as interest, dividends, pensions, or trust distributions the NR4 shows how much you earned and how much Canadian tax was withheld.

At Optimize, we help Canadians living abroad or with cross-border ties plan around non-resident income with confidence. This article breaks down the NR4 into clear sections and commonly used boxes so you can report it properly and plan smarter.

Identification and Basic Information

This section identifies you as a non-resident and shows who paid the income and how it was taxed.

Recipient’s name and address
Confirms your identity and tax residency status outside of Canada.

Payer’s name and address
The financial institution, trust, pension plan, or Canadian company that paid you.

Tax year
The calendar year in which you received the income reported on the slip.

Recipient’s country code
The CRA code for your country of residence. This is important for determining your tax treaty rate.

Recipient code
Confirms your non-resident status for tax purposes — required for correct tax treatment.

Income and Tax Withheld

This section shows the gross income paid and the tax withheld under Canadian non-resident withholding rules.

Box 16 – Income code
Indicates the type of income received. For example, Code 61 is interest, Code 63 is dividends, Code 46 is pensions, and Code 35 is trust income.
Box 17 – Gross income
The total Canadian-source income paid to you before withholding tax. This is not net of fees or tax.
Box 18 – Non-resident tax withheld
The amount of Canadian tax withheld and remitted to CRA. Usually 25 percent unless reduced by a tax treaty.

Important: The NR4 reports income that may already have been taxed at source. If your country has a tax treaty with Canada, you may be eligible to claim a lower withholding rate or tax credit when filing in your country of residence.

Currency and Reporting Notes

Some NR4s may report income in foreign currency or include other administrative information.

Box 27 – Currency of the amounts reported
Tells you whether income and tax are reported in Canadian dollars or another currency.

Tip: Keep your NR4 slips if you plan to claim a foreign tax credit in your home country. This form is often required by local tax authorities to verify Canadian withholding tax.

How Optimize Uses Your NR4

Reading your NR4 is not just a tax exercise. It is a planning opportunity. At Optimize, we use your NR4 to:

Support accurate cross-border income and tax planning
We coordinate Canadian-source income with your residency and overall tax profile.