Starting in 2016, the Canada Revenue Agency
("CRA") initiated the New Non-Canadian
Resident Employer Certification program to simplify the payroll
obligations on non-Canadian resident employers who send their
non-Canadian resident employees to work in Canada. As the program
grows, the CRA has started to audit program participants and sent
out information requests.
Background
Non-Canadian resident employers are required to withhold and
remit Canadian payroll taxes on every non-Canadian resident
employee who is paid salary or other remuneration for work
performed in Canada. However, many of these non-Canadian resident
employees are exempt from Canadian income tax on employment income
under their respective tax treaties. These employees could then
apply for a waiver to reduce the payroll obligations on their
employers.
