• Highlanders

    Payments to Non-Residents


    Non-Resident Tax Withholding


    Part XIII and Regulation 105 of the Canadian Income Tax Act require that services
    performed in Canada by foreign vendors are subject to Non Resident Tax. This is
    essentially a source deduction for income tax on income earned in Canada.


    In order to comply with this requirement, Marine Atlantic must deduct 15% from all
    fees charged in relation to work performed in CANADA, along with travel time in
    CANADA. Service work performed outside of Canada, supplier parts or living
    expenses incurred for the duration of your visit in Canada is not applicable to the tax.
    The amounts will be remitted to the Canada Revenue Agency on your behalf. By the
    end of February Marine Atlantic will send you a T4ANR form which will summarize
    the deductions for your tax reporting for the prior year.


    The 15% withholding is based only on services rendered within Canada, and travel
    WITHIN Canada. On your invoices, please state separately the amounts for services
    within Canada, services provided while outside Canada, and expenses. Travel time
    within Canada and Travel time to arrive in Canada must be clearly separated. Failure
    to determine what is applicable for with-holding purposes, will result in the full
    amount invoiced subject to the 15% with-holding.


    If you wish to review the Canada Revenue Agency requirements, please refer to the
    CRA web site at http://www.cra-arc.gc.ca and search on “Regulation 105”.


    In some circumstances a non-resident may be entitled to a waiver of the withholding.
    Details on the waiver process are on the CRA Website under Regulation 105.


    If you have any questions on this requirement please contact Sherry Anderson,
    Corporate Accountant, at the telephone or e-mail address listed below.


    Tel: (709) 695-4291

    Email: accounting@marineatlantic.ca