Taxable Canadian property (TCP) is the category of property whose disposition by a non-resident of Canada can be subject to Canadian tax. The main types include real or immovable property situated in Canada, certain Canadian resource and timber property, and shares or interests that derive their value principally from Canadian real property, resource property, or similar holdings.
Because a non-resident is otherwise taxed only on Canadian-source income, the TCP rules define when a gain realized by a non-resident falls within Canada's tax net. A disposition of TCP generally triggers the section 116 clearance-certificate process, under which the purchaser may be required to withhold and remit a portion of the proceeds unless a certificate is obtained. Identifying whether property is TCP is the starting point for any non-resident disposition of Canadian assets.