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hi,
i have a questions, i have lot of international investors interested in
investing in business in canada. the business is for some debit terminals
that'll be operating in canada where you'll be guarantee monthly income.
how do you go about report taxes if you're a non-resident, let say you live
in Hong Kong, Signapore, US, etc? I do know that Canada will withhold 10%
taxes, what other things do I have to consider?
thanks.
w.
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david ingram replies:
Sorry, I would have to see the contract before even beginning to answer this. And different countries will have a different treaty with Canada.
If these people are providing an independent service, to quote regulation 105,
Under Regulation 105, any person paying a non-resident a fee, commission or other amount for "independent" services provided in Canada, is liable to withhold tax at 15% of the gross payment. The person must remit this amount by the 15th day of the month following the month in which the amounts were deducted or withheld. Failure to deduct or remit an amount under Regulation 105 makes the payor liable for the outstanding amount, plus interest and penalty.
If the payment is a royalty, then the 10% applies.
Calculate the royalty, pay it every month, make the withholding every month and file a Form NR4 at the end of the year.
Hope this helps a bit but I would really need more information and it is specific and individual enough that it should be a "charged for" answer if you wish to proceed. .
David Ingram's US/Canada Services
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Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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