Old Age Security Return of Income (OASRI)

Are you receiving Old Age Security (OAS) pension and you are a non-resident? If you answered yes to both questions then you are required to file an Old Age Security Return of Income annually.

Non-resident Canadians who receive Canadian Old Age Security (OAS), may have to pay a “recovery tax” if their net global income exceeds the threshold for a given tax year. Net global income is the total of all income minus any allowable deductions. Non-resident individuals who receive OAS and and reside in countries which do not have a tax treaty with Canada, must submit an Old Age Security Return of Income (OASRI) to the CRA. Failure to do so may result in the suspension of OAS payments. Individuals who reside in countries with tax treaties with Canada are not required to file a OASRI return.

These countries are:

Argentina	Colombia	Greece	Madagascar	Papua New Guinea	Serbia	Trinidad & Tobago
Australia	Cyprus	Hungry	Malaysia	Peru	Spain	Turkey
Azerbaijan	Dominican Rep	Ireland	Malta	Poland	Sri Lanka	United Kingdom
Bangladesh	Eucador	Israel	Mexico	Portugal	Switzerland	United States
Barbados	Finland	Ivory Coast	New Zealand	Romania	Taiwan	Zambia
Bulgaria	Germany	Kenya	Norway	Senegal	Tanzania	Zimbabwe

OASRI returns' only purpose is to calculate the recovery tax. Recovery tax is an additional tax that is used to repay all or portion of Old age Security pension received by higher income individuals whose income are above the threshold for the tax year. The recovery tax can not exceed the amount of the Old Age Security Pension including supplements in a given tax year. The threshold for the 2021 tax year is $79,845.

If the individual becomes subject to OAS recovery tax, their future monthly OAS pension payments, starting with the first payment in the July following the tax year, will be reduced by the recovery tax amount.

The recovery tax for 2021 tax year can be calculated using the template below:

Net world income from Line 24200	$	Line 1
Less:OAS repayment threshold for 2021	-$79,845	Line 2
Line 1 minus Line 2 (if negative, enter "0")	$	Line 3
	X 15%	Line 4
Line 3 multiplied by Line 4	$	Line 5
OAS pension and net federal supplements receieved from Line 11300	$	Line 6
OAS benefits overpayment recovered in 2021 (Line 23200)	$	Line 7
Line 6 minus 7(if negative enter "0"	$	Line 8
Enter whichever is less: Line 5 or Line 8	$	Line 9
	X 75%	Line 10
Line 9 multiplied by Line 10	$	Line 11

Amount from Line 11 will be entered on Line 23500 of the return.

The deadline for filing Old Age Security Return of Income (OASRI) is no later than April 30. Failure to file the annual OASRI on time will result in the suspension of your OAS pension payments by Service Canada.

For further information please contact Softron at 1-877-SOFTRON or visit www.softrontax.com