Employers have to deduct income tax from remuneration they pay to non-resident employees who are in regular and continuous employment in Canada in the same way they do for employees who are resident of Canada. This applies whether or not the employer is a resident of Canada.

A tax treaty between Canada and the country of residence of a non-resident employee providing services in Canada may provide relief from Canadian tax deductions.

Application for a waiver of tax withholding

A non-resident employee who wants less tax to be withheld based on a tax treaty can send a letter or a waiver application with supporting documents to the applicable International Waivers Centre of Expertise. To find out which centre the employee should send the application to, go to Where to send completed waiver and non-resident employer certification applications.

Employment in Canada by certified non-resident employers

There is an exception to the withholding tax obligation for qualifying non-resident employers (who are certified by the CRA and who continue to meet certain conditions) when they pay amounts to non-resident employees for performing the duties of an office or employment in Canada. In other words, a qualifying non-resident employer paying a qualifying non-resident employee working in Canada will not be required to withhold and remit any amount of tax to the CRA. For more information about the certification process or your obligations as a qualifying non-resident employer, go to Non-resident employer certification.

To become a qualifying non-resident employer, fill out Form RC473, Application for Non-Resident Employer Certification and send it to the CRA for approval.

Forms and publications

• Form RC473, Application for Non-Resident Employer Certification