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Regulation 102 and 105 - Be aware and beware!

 

Our firm has recently seen a major increase in Regulation 102 and Regulation 105 related inquiries and mandates. 

Our experience is that the CRA is taking a hard line on implementing these regulations.

Services (Regulation 105)

Canadian companies are being checked for compliance with these complicated rules. The main issue is Canadian companies paying non-residents for services performed in Canada. Unless a waiver is obtained in advance, these Canadian corporations must withhold 15% when paying the non-resident. Quebec adds an additional 12% for services rendered in Quebec.

Salaries (Regulation 102)

Unless specific secondment or other arrangements are made, foreign corporations sending employees to work in Canada must ensure that these employees are paid through a Canadian payroll.

Non-resident Tax Refunds for Withholdings

In addition, US and other foreign companies are now required to provide more supplementary information to receive their treaty-based refund filings.


Contact us if you have any questions regarding what your Reg 102/105 requirements are, and how to make sure that you recoup the maximum withholdings possible.  



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UHY VICTOR SENCRL • LLP
Société de comptables
professionnels agréés •
Partnership of Chartered
Professional Accountants

759, rue du Square-Victoria, #400
Montréal, Québec, H2Y 2J7
Canada

+1 514 282 1836

UHY VICTOR UHY VICTOR LLP (the “Firm”) is a member of Urbach Hacker Young International Limited, a UK company, and forms part of the international UHY network of legally independent accounting and consulting firms. UHY is the brand name for the UHY international network. The services described herein are provided by the Firm and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.