Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Dear Sirs:
This is in reply to your letter dated July 28, 1982 concerning royalties paid to U.S. residents with respect to programs supplied on videotapes.
We confirm your view that Article XIIIC of the subject Convention would exempt U.S. residents from Canadian income tax on royalties paid to them by a resident of Canada for the use on television of videotapes (other than video tapes of motion picture films), provided the U.S. resident is not engaged in trade or business in Canada through a permanent establishment.
A proposed new Canada-U.S. Convention (not yet ratified) contains provisions which will terminate the above-mentioned exemption and permit Canada to tax such previously exempted royalties at a rate not to exceed 10% . This tax would not be exigible before the new Convention becomes effective.
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© Her Majesty the Queen in Right of Canada, 1982
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© Sa Majesté la Reine du Chef du Canada, 1982
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