Learn about definitions of words used in the administration of the Non-Resident Speculation Tax (NRST).

Approved institution

Approved institution means an institution that is approved under section 8 of Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans) made under the Ministry of Training, Colleges and Universities Act.

High schools (up to grade 12) are not approved institutions.

Designated land

Designated land means land that contains at least one and not more than six single family residences. Parking units and storage units in a condominium complex are also designated land as of March 27, 2024.

Foreign corporation

A foreign corporation is a corporation that is one of the following:

  • a corporation that is not incorporated in Canada.
  • a corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada), by one or more of the following:
    • a foreign national
    • a corporation that is not incorporated in Canada

Control of a corporation (for NRST purposes) includes both de jure control (who legally owns the voting rights to elect the majority of the board of directors) and de facto control (whether a person, despite not having the requisite share ownership, nonetheless has a right and ability to effect a significant change in the board of directors or to influence in a very direct way the shareholders who would otherwise have the ability to elect the board of directors). If the corporate documents are set up such that a foreign national has the ability to elect the board of directors of the corporation, then the corporation is a foreign corporation.

Foreign entity

A foreign entity is either a foreign national or a foreign corporation.

Foreign national

A foreign national means an individual who is not a Canadian citizen or a permanent resident of Canada.

Greater Golden Horseshoe Region

Greater Golden Horseshoe Region means the area of land comprised of the geographic areas of the following municipalities:

  1. City of Barrie
  2. County of Brant
  3. City of Brantford
  4. County of Dufferin
  5. Regional Municipality of Durham
  6. City of Guelph
  7. Haldimand County
  8. Regional Municipality of Halton
  9. City of Hamilton
  10. City of Kawartha Lakes
  11. Regional Municipality of Niagara
  12. County of Northumberland
  13. City of Orillia
  14. Regional Municipality of Peel
  15. City of Peterborough
  16. County of Peterborough
  17. County of Simcoe
  18. City of Toronto
  19. Regional Municipality of Waterloo
  20. County of Wellington
  21. Regional Municipality of York

Nominee

Nominee means a foreign national who is nominated under the Ontario Immigrant Nominee Program.

Permanent resident of Canada

A permanent resident of Canada means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada). The phrase permanent resident of Canada does NOT refer to whether or not you reside in Canada.

Protected person

Protected person means a foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada).

Single family residence

Single family residence means a condominium unit or a structure or part of a structure that is designed for occupation as the residence of a family, including dependants or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use. A single family residence includes such a residence that is to be constructed as part of the arrangement relating to a conveyance.

A single family residence does not include such a residence on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

Specified region

Specified region means the entire Province of Ontario.

Spouse

Spouse includes either of two persons who are married to each other, or who are not married to each other and who have cohabited as in one of the following two bullets:

Taxable trustee

A taxable trustee means either a trustee of:

  • a trust with at least one trustee that is a foreign entity
  • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity

However, taxable trustee does not include a trustee acting for the following types of trusts:

Transferee

Transferee includes a person to whom land is conveyed, and any person whose interest in land is increased as a result of a conveyance.

Transferor

Transferor includes any person making a conveyance of land to a transferee.