
INSIGHTS FROM OUR NATIONAL TAX OFFICE	FEBRUARY 2, 2016

Canada Non-Resident Employer Certification

The Canada Revenue Agency (CRA) released its Non-Resident Employer Certification program on January 12, 2016.

Canada Regulation 102 requires employers, whether a resident of Canada or not, to withhold and remit withholding tax on any remuneration paid to non-resident employees who provide services in Canada unless a waiver of withholding tax has been issued.

Change This Year

A non-resident employer certification removes the requirement to withhold tax from the salary, wages, and other remuneration the employer pays to non-resident employees. Starting in 2016, if a qualifying non-resident employee is exempt from paying Canadian income tax because of a tax treaty, then the qualifying non-resident employer does not have to withhold and remit tax for that employee. This eliminates the need for non-resident employees to request waivers of withholding. Non-resident employer certification will be valid for up to two calendar years.

Filing Deadline

Form RC473 must be filed by March 1, 2016, if you wish to make the certification retroactive from January 1, 2016. Any forms received by the CRA after March 1 should be filed at least 30 days before any qualifying non-resident employee starts providing services in Canada.

Please contact your Eide Bailly service provider or Carrie Cereghino with questions or for additional information.

Eide Bailly's National Tax Office serves as a resource for clients to help analyze complex tax issues related to business decisions. Our professionals are committed to helping clients stay informed about tax news, developments and trends through various specialty areas, including cost segregation studies, wealth transfer, state and local taxation, international tax, IRS controversy and procedures, R&D tax incentives, tax-exempt organizations, tax legislation, accounting methods and pass-through entities.

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This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Eide Bailly LLP and the author do not assume responsibility for any individual's reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique before recommending the technique to a client or implementing it on the client's behalf. To request reprints of this publication, send a written request to RequestReprints@eidebailly.com. © 2016 Eide Bailly LLP.