Canada: New tax relief deadline, foreign employers of cross-border employees

Canada: New tax relief deadline

Non-Canadian resident employers that have non-resident employees working in Canada now have until 1 March 2016 to request that a new exception from the withholding tax rules applies to them retroactively as of 1 January 2016. Previously, the deadline for these applications was 1 February 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. The effective date for this exception is 1 January 2016. The Canada Revenue Agency (CRA) does not anticipate giving retroactive approvals, but as a transitional measure, all applications for employer eligibility that the CRA receives by 1 March 2016 will be considered for a retroactive effective date of 1 January 2016. As such, employers that want to apply the exception to their eligible employees from 1 January 2016 must act quickly to meet the 1 March deadline to submit their applications.

 

Read a January 2016 report [PDF 28 KB] prepared by the KPMG member firm in Canada: Foreign Employers of Cross-Border Employees — Deadline Extended to March 1 for Canadian Tax Relief

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