|A major event such as Festival International de Jazz de Montréal presents each year a large number of foreign artists.|
Every arts organization who makes a payment to a non-resident artist or company for services rendered in Canada must withhold and remit a 15% withholding tax (arts organizations established in Quebec are also subject to additional withholding requirements).
While a waiver process exist, it is administratively cumbersome and slow. A request for a waiver should normally be filed at least 30 days the first performance in Canada. However, waiver processing time have been frequently exceeding this service standard, and we are now recommending non-resident to file at least 45 days before services are to begin.
In addition, there are information return and tax return obligations that are little known, but that can cause serious problems to non-resident artists. Failure to submit an information return or an income tax return will result in penalties, which will add another degree of complexity to any additional Canadian engagement the non-resident may have.
In order to achieve greater efficiency and better risk management in the administration of non-resident taxation, arts organizations have come together to form a Performing Arts Tax Working Group. This webpage provides resources and the latest news from this working group.
Non-Resident Taxation: Costs of Compliance Outweigh Tax Revenues – April 7, 2017
Streamlining, Please – December 13, 2016
A Systems View of International Taxation – November 3, 2016
Dialogue on International Taxation Begins with CRA – March 7, 2016
New Government; Renewed Advocacy on International Taxation – December 9, 2015
Working Group Provides Comments on International Taxation – September 10, 2015
Expanded Requirement for Foreign ArtistsTouring in Canada – June 4, 2015
Leveraging Budget 2015 – May 14, 2015
Tax Working Group Shares Recommendations on R105 Withholding – March 16, 2015
Arts Organizations Collaborate on Tax Withholding Matters – December 11, 2014