Non Residents and Canadian Income Taxes

Non-residents who are performing services in Canada as an independent person, artist, athlete, corporation, partnership or joint venture are subject to regulation 105 of the Canadian income tax act. Provincial regulations may apply depending on which province the services are rendered. Income taxes may become payable for these non-residents. This regulation requires any company, organization or individual to withhold and remit income taxes to the Canadian taxation authorities when payment is made to a non-resident for services rendered in Canada.

Payments made to non-residents who provide employment services in Canada are subject to withholding, remitting and reporting requirements. These requirements are in accordance with regulation 102 of the Canadian income tax act. Provincial regulations may apply depending on which province the employment services are rendered in.

Depending on the particular circumstances, Ivan can assist non-residents determine if their services or employment rendered in Canada are subject to these regulations, what exemptions are available, if treaty based waivers can be obtained, and annual filing requirements. Failure to comply with any of these regulations can result in significant penalties and interest being assessed to the taxpayer.

(For further info please refer to Tax Center under Non-Resident Guides, Publications and Information Circulars).