Who is taxable?
If you are a non-resident who renders services in Canada, you may have to pay tax on the income you earn in Canada. You should know your rights, entitlements, and obligations concerning this income.
Withholding and reporting requirements
Any person, whether a resident of Canada or not, who pays a non-resident for services rendered in Canada has to withhold a portion of the gross payments and remit this amount to the Receiver General for Canada. He or she also has to provide an information slip for this amount to the person who renders the service and to the Canada Revenue Agency (CRA).
- For more information on making payments to non-residents who render services other than employment services in Canada, see RC4445, T4A-NR – Payments to Non-Residents for Services Provided in Canada.
- For information on making payments to non-residents who provide employment services in Canada, see the T4001, Employers’ Guide – Payroll Deductions and Remittances.
If you are a non-resident who receives income for services rendered in Canada, you may have to report this income by filing a Canadian income tax return with the CRA to determine your final Canadian tax liability.
Exceptions to withholding
If you believe that your final Canadian tax liability will be less than the amount withheld, you can ask the CRA to reduce or waive the withholding accordingly. A request for a reduction or waiver from withholding should normally be filed 30 days before the services are to begin in Canada, or 30 days before the first payment is due for these services.
If you are qualifying non-resident employee working in Canada for a qualifying non-resident employer, your employer will not be required to withhold and remit any amount of tax to the CRA from your pay.
For more information on rendering services in Canada, see Rendering services in Canada.
Registering with the CRA
Non-residents who carry on business in Canada may need a Business Number to identify their business with the CRA. For more information, see Business Number registration.
Other services
If you are providing services within the film or television industry, see the section called Film and Media Tax Credits.