Foreign Employers of Cross-Border Employees | KPMG | CA

Foreign Employers of Cross-Border Employees — Deadline Extended to March 1 for Canadian Tax Relief

Foreign Employers of Cross-Border Employees

January 28, 2016, No. 2016-04. Non-Canadian resident employers who have non-resident employees working in Canada now have until March 1, 2016 to request that a new exception from withholding tax rules apply to them retroactively on January 1, 2016. Previously, the deadline for these applications was February 1, 2016.


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Non-resident employers and employees may qualify for an exception from the Regulation 102 rules requiring employers to withhold Canadian tax on income earned in Canada by their non-resident employees. This exception takes effect January 1, 2016.

The CRA does not anticipate giving retroactive approvals but as a transitional measure, all applications for employer eligibility the CRA receives by March 1, 2016 will be considered for a retroactive effective date of January 1, 2016. As such, employers who want to apply the exception to their eligible employees from January 1, 2016 must act quickly to meet the March 1 deadline to submit their applications.

Download this edition of the TaxNewsFlash to learn more [PDF 29.8KB].


Information is current to January 28, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.

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