Schedule C – Electing under Section 217 of the Income Tax Act

Complete Schedule C if:

• You were a non-resident of Canada for the entire year
• You are electing to file a return under section 217

Steps to complete Schedule C and deductions

1. Get Schedule C (Form 5013-SC)

   View or download Schedule C, Electing under Section 217 of the Income Tax Act

2. Report your eligible section 217 income

   Complete Part 1 of Schedule C to report and calculate the amount of non-resident tax you are required to pay.

   The amount you calculate may be different from the non-resident tax withheld on this income.

   This may happen if either:

   • The payer did not withhold the required amount of tax
   • The CRA approved a reduction in the amount of tax to be withheld if you submitted Form NR5

3. Calculate your section 217 tax adjustment

   Complete Part 2 of Schedule C only if the amount you enter on line 76 of your return is the same as your net world income after adjustments (from line 16 of Schedule A).

   Your net world income after adjustments may include:

   • Foreign-source income (not taxable in Canada)
   • Canadian-source income like interest, dividends or rental income, which is not included in the taxable income on your return

   This adjustment reduces your federal tax by the portion of taxes that apply to this income.

4. Claim deductions

   Claim only the deductions on lines 20700 to 25600 on your return that apply to you.

5. Complete Schedule A before you calculate your federal tax

   You must complete Schedule A, Statement of World Income, before you calculate the federal tax on your return.