Non-resident withholding taxes are taxes withheld by UBC, as the payer, from:
- payment made to non-residents of Canada for services rendered in Canada
- rents, royalties and similar payments made to non-residents of Canada.
Canada Revenue Agency requires that payments to non-residents be identified and that tax be withheld as appropriate and reported on a T4ANR or NR4 form, as applicable.
Non-Resident Tax Withholding on Payments for Services
The withholding tax is 15% of the gross amount of the payment and is required under Regulation 105 of the Income Tax Act.
Non-Resident Withholding Tax on Rents, Royalties or Similar Payments
The withholding tax is 25% of the gross amount of the payment and is required under Part XIII of the Income Tax Act unless reduced under a tax treaty.