CRA indicates that a non-resident director who attends all Canadian board meetings by phone or internet is not subject to source withholding

CRA considers that attendance of a non-resident individual outside Canada at Canadian board meetings through the internet or telephone does not constitute the performance of services in Canada, so that under Reg. 104(2), no withholding would be required. However, Reg. 200(1) nonetheless would require reporting of the remuneration on T4 slips (unless, per RC4120, the remuneration paid in the year was under $500.)

Neal Armstrong. Summary of 9 March 2017 External T.I. 2016-0677351E5 under Reg. 104(2) and Reg. 200(1).