Insights: Article

Canada Non-Resident Employer Certification

By Shannon Lemmon

January 16, 2017

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.

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