Please be advised that in addition to the increase in the capital gains tax inclusion rate as of June 25, 2024, the holdback increases to 35% effective for sales after January 1, 2025. From the CRA website (2nd last paragraph):
“Non-Resident Dispositions of Taxable Canadian Property
Non-residents of Canada are generally subject to Canadian tax on capital gains from dispositions of taxable Canadian property (which includes real or immovable property, including Canadian resource property and timber resource property, and certain shares that derive their value from such property). To ensure collection, certain procedures apply. A non-resident person may obtain a certificate of compliance in respect of a disposition, or proposed disposition, of taxable Canadian property if the required tax on the capital gain is paid. Absent this certificate, the purchaser is required to withhold a portion of the proceeds as tax on behalf of the non-resident person.
The rate applicable to this withholding is intended to approximate the combined federal and provincial tax payable on capital gains at the highest marginal tax rates. Consequential on the proposed change to the capital gains inclusion rate, and to reflect current federal, provincial, and territorial tax rates, the withholding rate applicable to non-resident dispositions of taxable Canadian property would be raised from 25 per cent to 35 per cent, applicable to dispositions that occur on or after January 1, 2025.“