Enter the exemption code that applies from the list in Appendix C. This code identifies the section of the Income Tax Act or a bilateral tax treaty that gives the authority to exempt the amount from Part XIII withholding tax, or to apply a reduced withholding rate, as a result of certain elections.

If no tax is withheld, the correct exemption code must be included. Exemption codes are only valid if they are used with the correct income type as shown in Appendix C.