How do I manage non-resident transactions? (Ontario)

 If the conveyancer determines that the NRST does apply in the circumstances, the conveyancer must indicate that at least one of the buyers is neither a permanent resident or a Canadian citizen and click Save. 

 In the Contracts action, the conveyancer will now see a dropdown option for the NRST to apply.

 When applied, the calculated NRST, assuming the NRST applies to 100% of the value of the property, will be added to the Cash to Bring. 

Prolegis will automatically flag that the NRST may apply to a transaction when the conveyancer has not indicated whether the buyers on the transaction are Canadian citizens, permanent residents or neither. If the conveyancer knows the NRST will apply, the conveyancer will navigate to Actions > Property > APS and select “Yes” in the Apply non-resident speculation tax field.

In Actions > Seller/Buyer the conveyancer can set the Citizenship status and can add the ownership share for each of the buyers. Setting the ownership share will impact the NRST calculation where there is more than one buyer and one of the buyers is not required to pay NRST. If there is only one buyer, the system defaults to 100% ownership. Where there is more than one buyer, the total cumulative ownership percentage of each buyer must equal 100%.

The NRST is automatically added to the Trust Ledger (Actions > Trust Ledger). The addition of this adjustment is linked to the citizenship status of the buyers. The addition or removal of this adjustment is based on whether or not the person is a Canadian citizen/permanent resident or neither.

The NRST is calculated based on the NRST calculations and the applicable buyer’s ownership percentage.

This information will be included in the Statement of Trust Receipts and Disbursements.

Where there is more than one NRST buyer, the amount of the NRST applicable to each buyer will be displayed in the trust ledger.