Further to the changes proposed in 2015, on January 12, 2016 the Canada Revenue Agency (CRA) released information on the process for providing ‘qualifying non-resident employers’ relief from the Canadian income tax withholding requirements on remuneration paid to ‘qualifying non-resident employee’ for services performed in Canada.
The employer must ensure the following actions are taken for all qualifying employees once the application is approved:
- Track and record the number of days each qualifying non-resident employee is working or present in Canada and the income attributable to their Canadian work days;
- Determine if employees are resident in a country with which Canada has a treaty;
- Evaluate and determine whether the employees meet ‘qualifying non-resident employee’ criteria;
- Obtain a Canadian Business Number;
- File annual T4 slips and summary along with information returns for those employees who provide employment services in Canada, either if qualified for the withholding exemption or non-qualified (no T4 reporting is required if exempt qualifying non-resident employee’s Canadian source income is under $10,000);
- Make its books and records available to the CRA for inspection as requested.
Read the complete newsletter here: http://www.gtn.com/newsletter_2016_02.php