If you believe that your actual tax liability will be less than 15% due to a tax treaty between your country and Canada or for other reasons, you may apply for the Regulation 105 Waiver in order to have the withholding tax reduced to a lower amount or even to zero.
The CRA generally recommends the applicant to apply for the Regulation 105 Waiver at least 30 days before the commencement of rendering of services in Canada or 30 days before the first payment. This is because the CRA expects the processing time to be 30 days and the acknowledgement letter from the CRA must be presented to the client before the client can reduce the withholding tax.
For a Treaty-Based waiver, you must not exceed a certain amount of days in Canada. For more information, please consult an international tax professional.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.