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.
Jim Wilson
(613) 957-2063
HBW 4125-U3-1
(Article XII)
19(1)
We are writing in reply to your letter dated May 8, 1989, concerning withholding tax under Regulation 105. Your letter was addressed to the Department of Finance and was forwarded to us recently for reply.
Unfortunately your contract 24(1) that you referred to in your letter was not enclosed. We are therefore unable to comment on the specific payments to be made 24(1) you under that contract. However, the following general comments may be of 24(1).
However, pursuant to subparagraph 212(1)(d)(vi) of the Income Tax Act, royalties or similar payments made for the right to produce or reproduce computer software are exempt from Canadian withholding tax. Article XIII(3) of the Canada-United States Income Tax Convention further supports this withholding exemption.
Where the above information is not sufficient and 24(1) requires a letter from our Department authorizing them not to withhold non-resident tax, they must supply us with a copy of the contract describing exactly the nature of the payments to be made.
We trust you will find this to your satisfaction.
Yours sincerely,
Christine Savage Acting Director Provincial and International Relations Division
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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