Withholding Reduction Applications (NR5 / NR6)
What it covers NR5: Apply for a reduction of Part XIII non-resident withholding on qualifying Canadian-source income NR6: Set up the net-rent withholding process for real property rental income
Key services
NR5 Withholding Reduction Requests
NR6 Rental Withholding Setup
Why choose us
Cash-flow focused
Operational support
Cross-border expertise
Withholding Reduction Applications (NR5 / NR6) Services
At Larivco & Cie, we help non-resident businesses and individuals with Part XIII withholding tax in Canada. By default, many Part XIII payments are subject to non-resident withholding, which can create major cash-flow drag when the withholding is higher than what should ultimately apply. Our NR5/NR6 services are designed to help you pursue CRA-approved reductions and implement a compliant process that payers and agents can actually run.
Use NR5 to reduce withholding
In specific situations, a non-resident can request a reduction in the amount of non-resident tax required to be withheld by filing Form NR5. CRA will issue written authorization to the non-resident and the payer(s), and the reduced withholding can only be applied once that authorization is received. NR5 is generally filed on a multi-year basis under CRA’s administrative policy (refiled every five tax years), which makes it especially valuable for recurring payments.
Use NR6 to reduce withholding on Canadian rental income (gross vs net)
For non-residents earning rental income from Canadian real property, the default withholding is generally on gross rents. With an approved NR6 undertaking, CRA can allow withholding on net rental income instead. After CRA approves NR6, the agent can withhold non-resident tax on net rental income and must remit it by the 15th day of the month following the month the rent is paid or credited. We help structure the process and documentation so it’s compliant and operational.
Make it operational
These applications succeed or fail on execution. We help you implement:
a clear workflow between the non-resident, the Canadian payer/agent, and your finance team
document standards (support for income, expenses where relevant, authorizations, and retention)
controls and reconciliation to reduce filing errors and CRA follow-up exposure
Built for cross-border clients
We support non-resident clients from the US, UK, France, and Germany with Canadian-source payments and ongoing compliance needs.
Common add-ons: Part XIII/NR4 advisory review, NR4 filing (slips + summary), treaty rate relief documentation (NR301/NR302/NR303), and CRA audit & penalty defense.