NR73 or NR74? Five Questions to Review Before Contacting the CRA
- AHOM-RMC Inc.
- 17 hours ago
- 5 min read
Are you preparing for an international corporate assignment, returning to Canada or welcoming an overseas transferee to your organization?
Cross-border moves can change an individual’s Canadian income-tax obligations—but tax residency is not determined by citizenship, immigration status or a single day-count test. The Canada Revenue Agency considers the individual’s complete pattern of residential ties, living arrangements and relevant tax-treaty rules.
Two voluntary questionnaires may help:
Form NR73 applies when someone has left or plans to leave Canada and wants the CRA’s opinion about their residency status.
Form NR74 applies when someone has entered or stayed briefly in Canada and wants the CRA’s opinion about their residency status.
These forms do not create residency, establish an immigration landing date or guarantee a particular tax result. The CRA’s opinion is based on the facts disclosed and is not binding if those facts change or further review reveals additional information.
Before requesting a CRA residency opinion, review these five questions.
1. Are you entering Canada or leaving Canada?
Direction determines which questionnaire may be relevant.
Leaving Canada: Form NR73
Consider Form NR73 if you have left—or are planning to leave—Canada temporarily or permanently and need help determining your residency status for income-tax purposes.
Leaving Canada does not automatically make someone a non-resident. The analysis considers whether significant Canadian residential ties have been severed, retained or replaced by ties in another country.
Entering Canada: Form NR74
Consider Form NR74 if you have entered or stayed briefly in Canada and need help determining your residency status.
NR74 does not establish an official “landing date.” For tax purposes, residency may begin when the individual establishes sufficient residential ties with Canada, subject to the complete facts and any applicable tax treaty.
2. Where will your household actually live?
The CRA gives considerable weight to significant residential ties, particularly:
A dwelling place available to you in Canada
A spouse or common-law partner in Canada
Dependants in Canada
If an employee works abroad while their spouse, dependants and established home remain in Canada, those facts may strongly support continued Canadian residency.
They do not, however, produce an automatic result. The CRA examines the complete arrangement, including the purpose and duration of the absence, living arrangements abroad and any applicable tax-treaty provisions.
The useful question is not simply, “Where is the employee working?” It is:
Where has the employee’s personal and household life actually been established?
3. What will happen to your Canadian home or rental property?
A Canadian home that remains available for personal use can be an important residential tie.
The treatment may differ if the property is:
Sold before or after departure
Subject to a terminated lease
Rented to an arm’s-length tenant
Left vacant and available to the individual
Occupied by a spouse, partner or dependant
Renting the property does not automatically require Form NR6. If the owner becomes a non-resident and receives Canadian rental income, non-resident withholding and reporting rules may apply.
Generally, a payer or Canadian agent must withhold 25% of gross Canadian rental income. An approved Form NR6, together with the required Section 216 filing, may permit withholding based on estimated net rental income instead.
This is a separate compliance issue from determining residency and should be reviewed with a qualified Canadian tax professional.
4. What other Canadian ties will remain?
The CRA also considers secondary residential ties. These may include:
Provincial or territorial health coverage
A Canadian driver’s licence
Vehicles and personal property
Canadian bank and investment accounts
Credit cards
Professional, recreational or social memberships
Mailing addresses and other economic connections
No single secondary tie ordinarily determines residency by itself. These connections are generally considered collectively and in the context of the individual’s complete circumstances.
Do not cancel health coverage, close financial accounts or surrender licences merely to create the appearance of non-residency. Those decisions may carry legal, financial, insurance and practical consequences.
Establish the facts first. Then obtain appropriate advice.
5. What do the timeline and applicable tax treaty indicate?
Dates matter—but the commonly cited 183-day rule is frequently misunderstood.
A person who spends 183 days or more in Canada during a calendar year may be a deemed resident only when the relevant statutory conditions are satisfied. The result may also be affected if that person is considered resident in another country under a Canadian tax treaty.
Someone may also become a factual resident before reaching 183 days if they establish significant residential ties with Canada.
Record:
The date of departure or arrival
The expected assignment duration
Days physically present in each country
The availability of homes in Canada and abroad
The location of the spouse, partner and dependants
Employment and payroll arrangements
Changes to health coverage, licences and financial accounts
Any tax treaty between Canada and the other country
The number of days is evidence. It is not the entire residency test.
Before Submitting NR73 or NR74
Consider whether you genuinely need the CRA’s opinion.
Before submitting either questionnaire:
Review the CRA’s residency-status guidance.
Build an accurate timeline of the move.
Document residential ties in Canada and the other country.
Review potential tax-treaty implications.
Identify related issues involving payroll, departure tax, Canadian property, foreign assets and benefits.
Obtain independent professional advice when the facts are complex or significant tax consequences may arise.
Ensure every answer submitted to the CRA is complete and consistent with the underlying records.
The CRA states that its opinion is based entirely on the facts supplied in the questionnaire and may be reconsidered following a more detailed review.
One Move—Several Separate Responsibilities
A relocation may involve several parties:
The employee or taxpayer provides accurate facts and obtains personal tax advice.
The employer manages payroll, benefits and employment compliance.
A qualified tax professional evaluates tax consequences, treaty issues and filing obligations.
The CRA administers Canadian tax law and provides government guidance.
AHOM-RMC coordinates the relocation process, identifies handoff points and connects the move with appropriate independent professional support.
AHOM-RMC does not determine tax residency, prepare tax opinions or replace the CRA, a tax lawyer or a qualified tax adviser.
Continue With the Full Resource
Visit the Determining Canadian Tax Residency: NR73 and NR74 resource for:
Official CRA forms and government guidance
Entering-versus-leaving comparisons
Residential-tie considerations
Submission information
Employer and employee responsibility boundaries
Professional-advisory and relocation-support pathways
The objective is not to manufacture a preferred residency result. It is to assemble the facts, understand the consequences and approach the CRA—or a qualified adviser—with the right questions.
General information only. This article does not provide tax, legal, immigration, payroll or financial advice. Rules and administrative procedures may change. Confirm current requirements with the CRA and appropriately qualified professionals before acting.
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