T2 Non-Resident Corporation with tax treaty

T2
1

My client is a non-resident corporation of a country with a tax treaty with Canada.

We are reporting their sales in Canada. Worldwide rent was reported and paid in New Zealand, including income from Canadian sources.

My question is, even that I’m filling S91 and S97, indicating is a corporation with tax treaty, I’m seeing a balance owing in the return. In understand it has to be zero. Is it possible I’m missing a field where I have to reduce the tax payable? or I have to keep like this and when CRA review the T2, will notice is a corporation under a tax treaty and will reduce the balance to zero?

Thanks!

2

@hugo.salas I know I replied to your email in our support tool but for the benefit of the forum members, I will leave a reply here as well.

When you are preparing a treaty T2 return, you do not need to complete GIFI (S125, S100). I am guessing that you filled that out and that is why tax payable is being calculated.

The CRA’s guide provides the following guidelines.

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In TaxCycle, when you answer No to the tax residency question in Info, you should see an additional section open up just below. You can fill out the section and complete Schedule 91.
Please do not prepare GIFI (s100, S125).

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Steven Yu