February 17, 2020

Upcoming change to NR4 tax slips

We’ll be making a change to the way we report tax information on NR4 tax slips (i.e. Non-Resident Tax Withholding, Remitting, and Reporting slips). We send NR4 slips to plan members who are non-resident of Canada. This change only affects slips issued to plan members with a non-registered savings plan.

We always report capital gains in box 26 of the NR4 tax slip.

In the past, the amount reported in box 26 of the NR4 slip reflected 50% of capital gains for the year. That’s because only 50% of capital gains are usually taxable to taxpayers who are residents of Canada for tax purposes.

Starting with the 2019 tax year, the amount of capital gains reported in box 26 of the NR4 slip will reflect 100% of the capital gains that were incurred during the year.

We’ve decided to make this change to simplify the capital gains reporting on the NR4 slip. Depending on their reporting jurisdiction, the 50% taxability rate may not apply to all non-resident plan members.

How does this impact you and your plan members?

You don’t need to take any action at this time.

We’ll provide further information to your plan members impacted by this change. We also recommend that they consult a tax professional about the implications of this change for their specific situation.


Please contact your Sun Life Group Retirement Services representative.