Non-Resident Speculation Tax

UPDATE

Effective December 16, 2017, Teraview, Ontario’s electronic land registration system, has been updated to include new land transfer tax (LTT) statements on the applicability of the Non-Resident Speculation Tax (NRST). These new statements replace the three statement options which were available when NRST was first introduced.

The new statements have been incorporated into the Teraview electronic registration system. However, NRST cannot be paid at the time of an electronic registration until December 30, 2017. For transfers subject to NRST registered before December 30, 2017, NRST and LTT must continue to be pre-paid to the Ministry of Finance.

If a document must be registered at a Land Registry Office, any NRST that is payable must continue to be pre-paid, along with LTT, to the Ministry of Finance. This requirement will continue after December 29, 2017. The Land Transfer Tax Affidavit has been amended to incorporate the required NRST statements.

More details below.

Overview

The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario.

The GGH includes the following geographic areas:

  • City of Barrie
  • County of Brant
  • City of Brantford
  • County of Dufferin
  • Regional Municipality of Durham
  • City of Guelph
  • Haldimand County
  • Regional Municipality of Halton
  • City of Hamilton
  • City of Kawartha Lakes
  • Regional Municipality of Niagara
  • County of Northumberland
  • City of Orillia
  • Regional Municipality of Peel
  • City of Peterborough
  • County of Peterborough
  • County of Simcoe
  • City of Toronto
  • Regional Municipality of Waterloo
  • County of Wellington, and
  • Regional Municipality of York.

Refer to the map and the FAQs at the end of this page for more information.

Effective date

The NRST took effect April 21, 2017.

Binding agreements of purchase and sale signed on or before April 20, 2017, and not assigned to another person after April 20, 2017, are not subject to the NRST.

Entities subject to the NRST

The NRST applies to foreign entities or taxable trustees who purchase or acquire residential property in the GGH.

foreign entity is either a foreign corporation or a foreign national.

foreign corporation is a corporation that is one of the following:

  1. A corporation that is not incorporated in Canada.
  2. A corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada), by one or more of the following:
    1. a foreign national
    2. a corporation that is not incorporated in Canada
    3. a corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled, directly or indirectly in any manner whatsoever, within the meaning of section 256 of the Income Tax Act (Canada), by the particular person.

A foreign national, as defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada.

A permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).

A taxable trustee means a trustee of:

  • a trust with at least one trustee that is a foreign entity, or
  • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity.

Taxable trustee does not include a trustee acting for the following types of trusts:

  1. A mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).
  2. A real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).
  3. A SIFT trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

Types of property subject to the NRST

The NRST applies to the transfer of land which contains at least one and not more than six single family residences.  Examples of land containing one single family residence include land containing a detached house, a semi‑detached house, a townhouse or a condominium unit.  In a situation involving the purchase of multiple condominium units, each unit would be considered land containing one single family residence.  Examples of land containing more than one single family residence that are subject to the tax include land containing duplexes, triplexes, fourplexes, fiveplexes and sixplexes. 

The NRST does not apply to other types of land such as land containing multi‑residential rental apartment buildings with more than six units, agricultural land, commercial land or industrial land.

The NRST applies on the value of the consideration for the residential property. If the land transferred includes both residential property and another type of property, the NRST applies on the portion of the value of the consideration attributable to the residential property. For example, if the purchase price of the transaction is $1,000,000 and contains one single family residence with a value of the consideration of $400,000, and commercial land with a value of the consideration of $600,000, the 15 per cent NRST would apply to only the $400,000 portion.

General application

The 15 per cent NRST applies to the value of the consideration for a transfer of residential property if any one of the transferees is a foreign entity or taxable trustee.

For example, if a transfer of residential property is made to four transferees, one of whom is a foreign entity that acquires a 25 per cent share in the land, the NRST would apply to 100 per cent of the value of the consideration for the transfer.

Each transferee is jointly and severally liable for any NRST payable. If a foreign entity or taxable trustee does not pay the NRST, the other transferees will be required to pay the tax. This applies even if the other transferees are Canadian citizens or permanent residents of Canada.

The NRST does not apply when a person purchases or acquires residential property as a trustee of a mutual fund trust, real estate investment trust or specified investment flow‑through trust.

The NRST applies to unregistered dispositions of a beneficial interest in residential property. This includes purchases and acquisitions of residential property where section 3 of the Land Transfer Tax Act is applicable.

Exemptions

An exemption from the NRST may be available in the following situations:

  • Nominee – A foreign national who is nominated under the Ontario Immigrant Nominee Program (nominee) at the time of the purchase or acquisition, and the foreign national has applied or certifies that they will apply to become a permanent resident of Canada
  • Protected person – A foreign national on whom refugee protection is conferred (protected person) under section 95 of the Immigration and Refugee Protection Act (Canada) at the time of the purchase or acquisition, or
  • Spouse – A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person.

    Under the Land Transfer Tax Act, spouse means “spouse” as defined in section 29 of the Family Law Act. This includes either of two persons who are married to each other, or who are not married to each other and who have cohabited,

    1. continuously for a period of not less than three years, or
    2. in a relationship of some permanence, if they are the natural or adoptive parents of a child.

To qualify for an exemption, the foreign national (and if applicable their spouse) must certify they will occupy the property as their principal residence.

The exemption applies if the Canadian citizen, permanent resident of Canada, nominee or protected person and his or her foreign national spouse purchased the property with other individuals who are Canadian citizens, permanent residents of Canada, nominees, or protected persons.

For the spousal exemption, multiple spousal units may also hold title, so long as one spouse is a Canadian citizen, permanent resident of Canada, nominee or protected person.

All transferees in the conveyance must also certify that they will occupy the property as their principal residence.

However, the exemption does not apply if the Canadian citizen, permanent resident of Canada, nominee, or protected person and his or her foreign national spouse purchased the property with another foreign national who is not a nominee or protected person. For example, if three parties purchase a property as follows:

  • one Canadian citizen and his or her foreign national spouse, and
  • a third party who is a foreign national (other than a nominee or protected person),

the exemption would not apply and NRST would be payable.

Exemptions in the Act and its regulations that apply to LTT will also apply to the NRST. The deferral and cancellation of LTT for intercorporate transfers between affiliated corporations will also apply to the NRST.

Rebates

A rebate of the NRST may be available in the following situations:

  • Foreign national who becomes a permanent resident of Canada – The foreign national becomes a permanent resident of Canada within four years of the date of the purchase or acquisition
  • International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or
  • Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full-time means an employment position that requires no fewer than 30 hours of paid work per week over a 12 month period and no fewer than a total of 1,560 hours of paid work over that period.

To qualify for a rebate, the foreign national must exclusively hold the property, or hold the property exclusively with his or her spouse. The property must also have been occupied as the foreign national's (and if applicable his or her spouse's) principal residence for the duration of the period that begins within 60 days after the date of the purchase or acquisition.

Rebates must be applied for within four years after the day on which the NRST became payable, except for the rebate for a foreign national who becomes a permanent resident of Canada. The rebate for a foreign national who becomes a permanent resident of Canada must be applied for within 90 days of the foreign national becoming a permanent resident, and no application may be made more than four years and 90 days from the date the NRST became payable.

All rebate applications must be made using the Ontario Land Transfer Tax Refund/Rebate form for NRST.

Supporting documentation will be required to substantiate all applications for rebates.

Overpayment of NRST

If NRST has been improperly paid or overpaid, a refund may be applied for using the Ontario Land Transfer Tax Refund/Rebate form for NRST.

Supporting documentation will be required to substantiate all applications for refunds.

Tax avoidance and offences

All transfers of land in Ontario are subject to audit.

Anti‑avoidance provisions will be enforced to ensure the NRST is reported and paid as required. This includes examining circumstances where Canadian citizens or permanent residents of Canada, as taxable trustees, hold property in trust for a foreign entity. This also includes preventing the use of multiple conveyances to avoid the NRST.

Failure to pay the NRST as required may result in a penalty, fine and/or imprisonment.

Statements regarding NRST at registration

The Ministry of Finance requires an express statement of whether or not a registration is subject to NRST.

Electronic registration (Teraview) – NRST is payable

Effective December 16, 2017, if NRST is payable, statement 9170 must be selected, along with either statement 9171 or statement 9172. The NRST statements are found on the Explanations Tab.

  • 9170 - The transferee(s) has considered the definitions of “designated land” “foreign corporation” “foreign entity”, “foreign national” “specified region”, “taxable trustee” as set out in subsection 1(1) of the Land Transfer Tax Act, and declare one of the following statements:
  • 9171 - This conveyance is subject to additional tax as set out in subsection 2(2.1) of the Act.
  • 9172 - This conveyance is subject to additional tax as set out in subsection 2(2.1) of the Act. This is a conveyance of a combination of “designated land” and land that is not designated land. The transferee(s) has accordingly apportioned the value of the consideration on the basis that the consideration attributable to the conveyance of the designated land is AMOUNT and the remainder of land is used for TEXT purposes.

Electronic registration – NRST is not payable

Effective December 16, 2017, if a registration is not subject to NRST, statement 9173 must be selected, along with one of statements 9174 through 9181.

  • 9173 - The transferee(s) has read and considered the definitions of “designated land” “foreign corporation” “foreign entity”, “foreign national” “specified region”, “taxable trustee” as set out in subsection 1(1) of the Land Transfer Tax Act. The transferee(s) declare that this conveyance is not subject to additional tax as set out in subsection 2(2.1) of the Act because:
  • 9174 - (a) This is not a conveyance of land that is located within the “specified region”.
  • 9175 - (b) This is not a conveyance of “designated land”.
  • 9176 - (c) The transferee(s) is not a “foreign entity” or a “taxable trustee”.
  • 9177 - (d) Subsection 2.1(3) of the Act applies to this conveyance (the land has been conveyed pursuant to an agreement of purchase and sale entered into on or before April 20, 2017, and any assignment of the agreement of purchase and sale to any other person was entered into on or before April 20, 2017).
  • 9178 - (e) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “nominee” as defined in Ontario Regulation 182/17 and the conveyance satisfies the requirements of section 2 of the Regulation.
  • 9179 - (f) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “protected person” as defined in Ontario Regulation 182/17 and the conveyance satisfies the requirements of section 3 of the Regulation.
  • 9180 - (g) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “foreign national” and the foreign national’s “spouse” as defined in subsection 1(1) of the Act, and the conveyance satisfies the requirements of section 4 of the Regulation.
  • 9181 - (h) OTHER [insert text].

If a transferee wants to provide more than one reason as to why NRST is not payable on registration, the transferee may use 9181 and insert the applicable paragraphs, for example:

  • 9181 - (h) OTHER “paragraphs (a), (b) and (c) apply”.

Paper registration

Effective December 16, 2017, the Ministry of Finance requires an express statement of whether or not the registration is subject to NRST. The Land Transfer Tax Affidavit has been amended to accommodate the appropriate statements at paragraph 5. If NRST is payable, paragraph 5(a) must be completed. If NRST is not payable, paragraph 5(b) must be completed.

Unregistered dispositions

The Ministry of Finance requires an express statement of whether or not the disposition is subject to NRST. The Return on the Acquisition of a Beneficial Interest in Land form has been amended to accommodate the appropriate statements at section 10. If NRST is payable, section 10(a) must be completed. If NRST is not payable, section 10(b) must be completed.

Payment of NRST

Electronic registrations

After December 29, 2017, Teraview will accept payments of NRST at the time of registration.

Until December 29, 2017, affected purchasers/transferees must pre‑pay both the LTT and the NRST directly to the Ministry of Finance (MOF). Once the MOF accepts the pre‑payment of the taxes, the transfer may be registered electronically without further payment of LTT or NRST.

The MOF will provide a letter confirming receipt of NRST and LTT with a receipt number.

The MOF will not accept payment of the City of Toronto's municipal land transfer tax. Please contact the City of Toronto about payment of its municipal land transfer tax.

Registrations made at Land Registry Offices (registration on paper)

Land Registry Offices will not accept payment of NRST. For registrations made at a Land Registry Office, if the transfer is subject to NRST, both the LTT and NRST must be pre‑paid directly to the MOF.

The MOF will provide a letter confirming receipt of NRST and LTT with a receipt number.

Dispositions / unregistered transfers

If a transfer will not be registered on title, a Return on the Acquisition of a Beneficial Interest in Land form, along with the payment of the LTT and the NRST must be submitted to the MOF within 30 days of the transfer of land.  For more information, see Land Transfer Tax and the Treatment of Unregistered Dispositions of a Beneficial Interest in Land.

How to pre‑pay the Land Transfer Tax and the NRST to the MOF

After December 29, 2017, the Ministry of Finance will continue to accept payment of NRST in advance of registration. Taxpayers who wish to pay NRST directly to the Ministry must also directly pay the applicable LTT to the Ministry.

Registrants who receive Ministry of Finance pre-approval of NRST liability must still complete the applicable NRST statements along with either statement 9089 or statement 9090:

  • 9089 - Tax has been paid directly to the Ministry of Finance and documents endorsed accordingly as confirmed by receipt no. NUMBER (evidence needs to be submitted).
  • 9090 - Ministry of Finance has endorsed documents as follows: “No Land Transfer Tax Payable” (evidence needs to be submitted).

If the conveyance is subject to NRST, registrants must complete statements 9089, 9170 and [9171 or 9172]. Registrants will receive a receipt number for insertion into statement 9089.

If the conveyance is not subject to NRST, registrants must complete either statement 9089 or 9090 along with 9173 and one of statements 9174 through 9181.

The Ministry of Finance suggests submitting all required documents a minimum of five business days prior to the closing of the deal. Please note that this guideline only applies if the ministry is provided with all required documents (properly completed) and payments at the time of submission. In addition, complex files (such as those involving multiple transfers) may take longer to process. As well, taxpayers submitting documentation by courier or mail are requested to submit the material at least 15 days prior to closing.

The following documentation must be submitted to the MOF:

For transfers to be registered and for unregistered transfers / dispositions:

  1. Cheque for the LTT and the NRST (certified, if not drawn on the solicitor's trust account), made payable to the “Minister of Finance”
  2. Copy of the Agreement of Purchase and Sale, with all schedules attached
  3. Copy of the draft Statement of Adjustments (if applicable)
  4. If the value of the consideration is based on the fair market value of the land, any appraisals or documentation that is evidence of the fair market value of the land
  5. Any additional documents as may be required to determine the value of the consideration

In addition, for transfers to be registered:

  1. Authorizing or Cancelling a Representative form(s), completed by each transferee
  2. Copy of the Document “in preparation” or three copies of the Transfer/Deed if registration is done on paper
  3. If registration is done on paper, two completed Land Transfer Tax Affidavits.

Please submit the required documentation to the following address, either by mail, courier or in person:

Ministry of Finance
Compliance Branch
33 King Street West
Oshawa ON L1H 8H9

Additional information

If you have administrative or technical questions about the NRST, contact:

Ministry of Finance
Land Tax Section
33 King Street West
Oshawa ON L1H 8H9

  • Toll free: 1‑866‑ONT‑TAXS (1‑866‑668‑8297)
  • Teletypewriter (TTY): 1‑800‑263‑7776
  • Fax: 905‑433‑5770
  • Ministry website: ontario.ca/finance

Map of the Greater Golden Horseshoe Region

Map of the Greater Golden Horseshoe


Frequently Asked Questions about the Non‑Resident Speculation Tax

Is the Non‑Resident Speculation Tax related to the requirement to provide additional information?

The obligation to provide additional information is separate and distinct from the application of the proposed Non‑Resident Speculation Tax (NRST). The NRST applies to certain transactions within the Greater Golden Horseshoe Region (GGH). The requirement to provide additional information applies to certain transactions in all of Ontario. More details on the requirement to provide additional information may be found on our webpage Prescribed Information for the Purposes of Section 5.0.1 Form.

I signed my agreement of purchase and sale on April 19, 2017. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay the NRST?

There is no NRST payable if the both the seller and the buyer signed a binding agreement of purchase and sale on or before April 20, 2017, and if an assignment of the agreement is not entered into after April 20, 2017.

I am a Canadian citizen living outside of Canada and I wish to purchase land in the Greater Golden Horseshoe Region. Will my purchase be subject to the NRST?

If a Canadian citizen (whether living in Canada or not) buys residential land alone or along with other Canadian citizens or with permanent residents of Canada, he or she will not be subject to NRST. It is not relevant whether any of the Canadian citizens live in Canada or not.

The reference to “not a permanent resident of Canada” refers to a “permanent resident” as defined in the Immigration and Refugee Protection Act (Canada):

    "permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46."

Is the NRST payable on top of the Land Transfer Tax (LTT) or vice versa?

Neither tax is payable on top of the other. NRST and LTT are calculated separately on the value of the consideration for the transfer.

My partner and I are buying a house in Oshawa. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. Does she have to pay NRST?

If she is not your spouse, NRST will be payable on the full value of the consideration for the transfer of the house. It is not pro‑rated.

If your partner is your spouse, as defined in the Land Transfer Tax Act, the transaction will be exempt from NRST if you are acquiring the house together and no other foreign entities are acquiring an interest in the house (unless the third party is a nominee, protected person, or another spousal unit that also meets the NRST spousal exemption criteria). All transferees must certify that they will occupy the property as their principal residence.

    "Spouse" means spouse as defined in section 29 of the Family Law Act. This includes either of two persons who are married to each other, or who are not married to each other and who have cohabited,

    1. continuously for a period of not less than three years, or
    2. in a relationship of some permanence, if they are the natural or adoptive parents of a child.

My spouse and I are buying a house in Kitchener. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. My brother is buying the property with us, so all three of us are on title. Do we have to pay NRST?

NRST is not payable on the transaction if your brother is a Canadian citizen, a permanent resident of Canada, a nominee under the Ontario Immigrant Nominee Program, or a person conferred “refugee protection” under section 95 of the Immigration and Refugee Protection Act (Canada). NRST is payable if your brother does not fall into one of the four scenarios listed above. Although there is an exemption for spouses if one of the spouses is a Canadian citizen, permanent resident, nominee or refugee, this exemption does not apply if the spouses purchase the property with a third party who does not fall into one of the four scenarios listed above. All transferees must certify that they will occupy the property as their principal residence.

My business partner and I are buying a triplex in Hamilton. I am a permanent resident of Canada. She is not a citizen or a permanent resident of Canada. She is not my spouse. Does she have to pay NRST?

NRST is payable on the purchase by both of you and calculated on the full value of the consideration for the triplex.

However, the purchase may be exempt from NRST if your business partner becomes a nominee or a protected person prior to the date of purchase.

I am buying a house in Mississauga and I am not a Canadian citizen or a permanent resident of Canada. I have applied to be a permanent resident, and hope to complete that process in a year. Do I have to pay the NRST?

If you are not a permanent resident of Canada at the time your deal closes, you must pay the NRST. If you become a permanent resident or citizen of Canada within four years from the date of closing the deal, you may apply for a rebate of the NRST. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence for the duration of the period from within 60 days of the date of closing the deal to the day you apply for the rebate. You have 90 days from the date of becoming a permanent resident to apply for the rebate.

My daughter and I are not citizens of Canada or permanent residents of Canada. My daughter will be attending university and she wants to buy a home in Toronto to live in while she attends the university. Does she have to pay the NRST?

The NRST will be payable on the purchase of the home. She may apply for a rebate of the NRST once the following conditions are met:

  • the home must be purchased only by your daughter (or your daughter and her spouse, if applicable)
  • neither you nor anyone else has any beneficial interest in the home
  • she is enrolled as a full‑time student for a continuous period of at least two years in an “approved institution” (as outlined in Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario, and
  • the house is occupied as her principal residence within 60 days after the date of the purchase or acquisition, for the two year period set out above.

If she meets all of the requirements listed above, an application for this rebate must be made within four years after the date of purchase or acquisition.

I am buying a house in Barrie, while I have a full‑time job. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay NRST?

Yes, you will have to pay the NRST. You may be eligible for a rebate of the NRST if you legally work full‑time in Ontario for a continuous period of one year from the date of purchase or acquisition. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence 60 days after the date of the purchase or acquisition for the duration of the year.

What do I do if I registered without prepaying the NRST?

Penalty and interest provisions will apply to the non‑payment of the NRST. The MOF has a Voluntary Disclosure Policy that states that if you voluntarily report and pay unpaid tax, with interest, the ministry will not impose a penalty on you. All documentation must be provided along with the voluntary reporting and payment of NRST.

If MOF has not finished processing my prepayment of NRST by the closing date, how do I close my deal?

For closing after December 29, 2017, Teraview will accept payments of NRST. For pre-payments of NRST and LTT, we suggest that the request to pre‑pay the NRST and LTT be submitted with all required documentation a minimum of five business days prior to the closing of the deal.

If I prepay the NRST and LTT, but my deal does not close, can I get my money back?

If the deal did not close because it is not going to be completed, MOF will refund the money paid. However, along with all the required documentation to process a refund request, MOF also requires a signed mutual release proving that the deal is at an end.

If the deal has not closed and the agreement has been amended such that the closing date has been extended, the MOF will not issue a refund.

My client is a landed immigrant of Canada. Is he subject to the NRST when buying a home in Mississauga?

The term “Landed Immigrant” is an outdated term that is no longer used by Immigration, Refugees and Citizenship Canada. You will have to confirm with your client whether or not he is a permanent resident of Canada.

In which specific geographic regions are transfers subject to the NRST?

Transactions within the Greater Golden Horseshoe Region are subject to NRST. The Greater Golden Horseshoe Region contains the following areas:

Land Registry Office (LRO) LRO Number LRO Location Regions, Counties and Municipalities
Brant LRO 2 Brantford The County of Brant and the City of Brantford
Dufferin LRO 7 Orangeville The County of Dufferin
Durham LRO 40 Whitby The Regional Municipality of Durham
Haldimand LRO 18 Cayuga Haldimand County
Halton LRO 20 Milton The Regional Municipality of Halton
Niagara North LRO 30 St. Catharines The Regional Municipality of Niagara
Niagara South LRO 59 St. Catharines The Regional Municipality of Niagara
Northumberland LRO 39 Cobourg The County of Northumberland
Peel LRO 43 Brampton The Regional Municipality of Peel
Peterborough LRO 45 Peterborough The County of Peterborough and City of Peterborough
Simcoe LRO 51 Barrie The County of Simcoe, the City of Barrie, and the City of Orillia
Toronto LRO 80 Toronto The City of Toronto
Victoria LRO 57 Lindsay The City of Kawartha Lakes
Waterloo LRO 58 Kitchener The Regional Municipality of Waterloo
Wellington LRO 61 Guelph The County of Wellington and the City of Guelph
Wentworth LRO 62 Hamilton The City of Hamilton
York LRO 65 Aurora The Regional Municipality of York

When will the NRST statement be a mandatory part of the transfer form?

If NRST is payable, transfers without completed NRST statements will not be accepted for registration. If NRST is not payable, until December 29, 2017 , registrations may be completed without the completion of the NRST statements. Effective December 30, 2017 , transfers without completed NRST statements will not be accepted for registration.

How will the audit process work?

The Ministry's authority to audit for provincial LTT liability (including liability for NRST) is set out in section 10 of the Land Transfer Tax Act. Refer to the general information about ministry audits.

Are non‑share capital corporations such as Condominiums or Co‑operatives subject to NRST?

Yes, if the transferee is a foreign corporation that acquires land which contains at least one and not more than six single family residences in the Greater Golden Horseshoe Region.

Are Canadian citizens who are outside of Canada for more than 183 days, i.e. snow birds, subject to the NRST?

A Canadian citizen would not generally be subject to the NRST even if the individual is not living in Canada.

Are assignors subject to the NRST?

The NRST would not apply to an assignor if the assignor does not acquire a beneficial interest in the land for the purposes of the Land Transfer Tax Act.

I entered into an Agreement of Purchase and Sale before April 21, 2017. The Agreement is being assigned after April 20, 2017, does the NRST apply?

If the Agreement of Purchase and Sale is assigned after April 20, 2017, the NRST would apply.

If an Agreement of Purchase and Sale is entered into after April 20, 2017, by a foreign entity and subsequently assigned to a Canadian citizen or permanent resident of Canada does NRST have to be paid by the Canadian citizen or permanent resident?

The Canadian citizen or permanent resident of Canada who acquired the assignment would not be subject to the NRST, unless he or she is a taxable trustee to which the NRST applies.

I am buying a property that has both residential and non‑residential land. How do I calculate the apportionment of consideration that is attributable to residential land (subject to NRST) and non‑residential land (not subject to NRST)?

A reasonable self‑assessment is required by taxpayers in apportioning the value of the consideration for the purposes of the NRST. The apportionment would be based on the value of the residential land as compared to the non‑residential land, not the square footage of the two.

In a new home purchase how is the value of the consideration to which NRST applies determined?

The value of the consideration for NRST purposes will be determined in accordance with the existing provisions of the Land Transfer Tax Act.

I would like to authorize a representative to pay the NRST on my behalf. How do I do this?

The Authorizing or Cancelling a Representative form allows you to authorize the Ministry of Finance to deal with another individual (such as your spouse, other family member, accountant, tax consultant or solicitor) as your representative for Ontario tax or program matters.

How should Part 1 of the Authorizing or Cancelling a Representative form be completed in order to authorize payment of the NRST by a representative?

The box next to the Land Transfer Tax Act should be chosen.

Will Part 1 of the Authorizing or Cancelling a Representative form be updated to reflect the appropriate legislation under which the NRST is being paid?

No, the NRST is incorporated into the Land Transfer Tax Act, therefore Part 1 of the form does not need to be updated.

What are the appropriate account or reference number(s) referred to in Part 1 of the Authorizing or Cancelling a Representative form?

This is the account number or reference number assigned by the Ministry of Finance. If the ministry has not provided an account number or reference number to the client who is completing the Authorizing or Cancelling a Representative form, then the field for the account or reference number will remain blank.

How should Part 2 of the Authorizing or Cancelling a Representative form be completed so that the Scope of Authorization is limited to the payment of land transfer tax and the NRST?

If the client wants the representative to act only with respect to LTT, which includes NRST, the client selects the box Only the matters specified below. Then the client is to select the box Other and write the text Payment of LTT and NRST.

Can I pay NRST by couriering funds to Oshawa or do I have to pay in person?

The NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. Please refer to the above section, entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF. After December 29, 2017, Teraview will accept payment of NRST at the time of registration. For paper registrations on which NRST is payable, payment of NRST and LTT must continue to be made at the Ministry of Finance.

I am purchasing property subject to the municipal land transfer tax. Can I pay all of the required land transfer tax at the Ministry of Finance in Oshawa?

The Ministry of Finance in Oshawa does not collect municipal land transfer tax on behalf of the City of Toronto. Both the general provincial LTT and the NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. For further payment details please refer to the above section entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF.

Can the vendor's lawyer sign for completeness without getting a NRST receipt number?

Currently this is not feasible through the Teraview platform.

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