Non-Resident Employer Certification

As a follow up to our 2015 blog post, the Canadian Federal Budget introduced measures to streamline the Canadian payroll tax withholding requirements for non-resident employers.

The budget introduced an exemption to the Regulation 102 requirement for qualifying non-resident employers on payments made to qualifying non-resident employees who meet the following conditions:

• Is resident in a country that Canada has a tax treaty with at the time of the payment;
• Does not have to pay tax in Canada on the payment because of a tax treaty; and
• Works in Canada for less than 45 days in the calendar year that includes the time of the payment or is present in Canada less than 90 days in any 12-month period that includes the time of the payment.