Withholding Tax : Tax tips

Payments made to a non-resident

Interest, dividend and most other payments made to a non-resident of Canada are subject to withholding tax under the Canadian Income Tax Act., and may be subject to an Income Tax Convention.

Fee or commission, for services rendered in Canada, to a non-resident

A Canadian resident who pays a fee or commission for services rendered in Canada to a non-resident is required to withhold tax of 25% and to remit it to the Revenue Agency (Canadian tax department). The rate may be reduced by a Tax Treaty.