What is the purpose of the Regulation 102 BTS Waiver Guidelines?

• These guidelines assist CRA officers in determining whether a non-resident employee will be subject to tax on Canadian-source employment income.
• They are used when a waiver applicant's country of residence has a treaty with Canada that contains a Dependent Personal Services article.
• Officers use these guidelines to determine whether to waive the Regulation 102 withholding tax.

To whom do the Regulation 102 BTS Waiver Guidelines apply?

These guidelines apply to non-residents who provide services in Canada as an employee of a production company or other employer, whether or not the employer is a resident of Canada.

To whom do the Regulation 102 BTS Waiver Guidelines NOT apply?

These guidelines do not apply to:

• Residents of non-treaty countries; and
• Corporations:

Payments made by a Canadian production company to a corporation will be subject to a 15% withholding tax under section 105 of the Income Tax Regulations. The corporation would not be considered an employee of the Canadian production company in such cases.

Note
Individuals performing services through a corporation will usually be considered employees of that corporation. Withholding tax at graduated rates would be applied by the corporation to any salary or remuneration paid to the employee of the corporation. This withholding tax requirement is subject to the current waiver provisions.