CRA finds that a separate copyright royalty paid for the use of music in a film is exempted from withholding

Although copyright royalties for the production or reproduction of musical or artistic works generally are exempted under s. 212(1)(d)(vi), under s. 212(5) this exemption does not apply (in the absence of Treaty relief) where the payments are for the right to use a film in Canada.  CRA does not consider that this exclusion will apply where separate copyright royalties are paid to a non-resident for the right to reproduce music which is used in a film.

Neal Armstrong. Summary of 1 March 2014 T.I. 2013-0514291E5 F under s. 212(1)(d)(vi) (see also 2011-0424221I7).