NR4 - Non-Resident Tax Withholding, Remitting, and Reporting
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`Non-Resident Withholding Tax Guide NR4 – Non-Resident Tax Withholding, Remitting, and Reporting 2009 T4061(E) Rev. 09 Is this guide for you? T his guide provides information for payers and agents who make payments to non-residents of Canada for income such as interest, dividends, rents, royalties, pensions, and acting services in a film or video production. It also explains how to complete the NR4 slip and summary. If you have a visual impairment, you can get our publications in braille, large print, etext (CD or diskette), or MP3 by going to www.cra.gc.ca/alternate or by calling 1-800-959-2221. La version française de cette publication est intitulée NR4 – Retenue d’impôt des non-résidents, versements et déclaration www.cra.gc.ca What’s new? Appendix B – Income codes Internet file transfer We have added a new income code 64 on the NR4 slip for If you use commercial or in-house-developed software to the Tax-Free Savings Account taxable amount. For more manage your business, you can now file up to 150 MB. For information, see page 10. more information, see “Filing over the Internet” on page 12. If your file is more than 150 MB, you can either compress Non-Resident TeleReply your return or you can divide it so that each submission is no more than 150 MB. Since April 6, 2009, Canadian payers, agents or their authorized representatives can call our Non-Resident TeleReply at 1-866-971-4644. Non-Resident TeleReply is a Mandatory electronic filing fast, easy and secure telephone service that allows you to Effective January 1, 2010, you must file information returns report a nil remittance of non-resident withholding tax by Internet File Transfer in eXtensible mark-up language on your account. For more information, go to (XML) if you file more than 50 NR4 information returns www.cra.gc.ca/nonrestelereply. (slips) for a calendar year. Mandatory electronic filing relates to the date of filing, not the tax year of the returns New payment method filed. My Payment is a new payment option that allows Failure to file information returns over individuals and businesses to make payments online, via the Internet the Canada Revenue Agency (CRA) Web site, from their account at a participating Canadian financial institution. Effective January 1, 2010, if you file more than 50 NR4 For additional information on this self-service option, go to information returns (slips) for a calendar year and you do www.cra.gc.ca/mypayment. not file the information returns over the Internet, you are liable to a penalty. For more information, see page 5. . www.cra.gc.ca Table of contents Page Page Before you start ................................................................... 5 NR4 Summary..................................................................... 12 What are your responsibilities? ......................................... 5 Completing the NR4 Summary......................................... 12 Penalties and interest .......................................................... 5 What is Part XIII tax?.......................................................... 6 NR4 information return .................................................... 12 Rates of Part XIII tax............................................................ 6 Filing over the Internet....................................................... 12 Beneficial ownership ........................................................... 6 Filing on paper .................................................................... 13 Special payments ................................................................. 7 Mutual fund investment distributions ............................. 7 After you file....................................................................... 13 Amending, cancelling, adding, or replacing slips .......... 13 Remitting deductions......................................................... 8 When to remit ...................................................................... 8 Special reporting situations ............................................. 14 Are you a new remitter? ..................................................... 8 Non-resident ownership certificates................................. 14 How to remit ........................................................................ 8 Distributing copies.............................................................. 14 Non-Resident TeleReply..................................................... 9 Appendix A – Country codes ........................................... 15 Missing or lost remittance voucher ................................... 9 Non-Resident Notice of Assessment, Notice of Appendix B – Income codes ............................................. 17 Reassessment, or Notice of Collection .......................... 9 Appendix C – Exemption codes....................................... 18 Applying for a refund of tax overpayments .................... 9 Appendix D – Currency codes ......................................... 20 NR4 slips .............................................................................. 9 When to complete the NR4 slip ......................................... 9 Appendix E – Province, territory or U.S. state, Completing the NR4 slip .................................................... 10 territory, or possession codes................. 21 Distributing the NR4 slips .................................................. 11 For more information ........................................................ 22 4 www.cra.gc.ca Before you start Failure to file information returns over the Internet Effective January 1, 2010, if you file more than 50 NR4 slips What are your responsibilities? for a calendar year, and you do not file the information As the payer or agent, you are responsible for withholding returns by Internet File Transfer in eXtensible mark-up and remitting Part XIII tax, and to report the income and language (XML) you are liable to a penalty determined as withholding tax on an NR4 information return. The follows: NR4 information return includes NR4 slips and the related NR4 Summary. Number of information Penalty You have to file the NR4 information return and give returns (slips) recipients two copies of the NR4 slip on or before the last 51 - 250 $250 day of March following the calendar year to which the information return applies, or in the case of an estate or 251 - 500 $500 trust, no later than 90 days after the end of the estate’s or 501 - 2,500 $1,500 trust’s tax year. 2,501 or more $2,500 Penalties and interest The Canada Revenue Agency (CRA) is granting a one year Failure to deduct transitional period to allow filers time to prepare for these We can assess a penalty of 10% of the required amount of changes. Penalties will be assessed starting in 2011. Part XIII tax you failed to deduct. When you are subject to this penalty more than once in a Late filing and failure to file the calendar year, we may apply a 20% penalty to the second NR4 information return or later failures if they were made knowingly or under Effective January 1, 2010, the penalty for failing to file the circumstances of gross negligence. NR4 information return by the due date or for distributing NR4 slips to recipients late is the greater of $100 or a Failure to remit and late remitting penalty determined as follows: We can assess a penalty of up to 20% of the amount you failed to remit when: Number of Penalty Maximum information (per day) penalty ■ you deduct the amounts, but do not remit them; or returns (slips) by type ■ we receive the amounts you deducted after the due date. 50 or less $10 $1,000 If the remittance due date is a Saturday, Sunday, or Canadian public holiday, your remittance is due on the 51 - 500 $15 $1,500 next business day. 501 - 2,500 $25 $2,500 The penalty is: 2,501 - 10,000 $50 $5,000 ■ 3% if the amount is one to three days late; 10,001 or more $75 $7,500 ■ 5% if it is four or five days late; ■ 7% if it is six or seven days late; and Failure to file an ownership certificate ■ 10% if it is more than seven days late or if no amount There is also a penalty for failing to complete or deliver an is remitted. ownership certificate (Form NR601, Non-Resident Ownership Certificate – Withholding Tax, and Form NR602, Non-Resident We consider an NSF cheque to be a failure to remit and will Ownership Certificate – No Withholding Tax), for the automatically apply a penalty. negotiating of bearer coupons or warrants. The penalty When you are subject to this penalty more than once in a is $50 for each failure. calendar year, we may assess a 20% penalty to the second or later failures if they were made knowingly or under Interest circumstances of gross negligence. If you fail to pay an amount, we may apply interest from the day your payment was due. The interest rate we use is determined every three months, based on prescribed interest rates. Interest is compounded daily. We also apply interest to unpaid penalties. www.cra.gc.ca 5 Cancelling or waiving penalties and interest You can also get the applicable current tax rates by The taxpayer relief provisions of the Income Tax Act give us contacting the International Tax Services Office at the some discretion to cancel or waive all or part of any interest numbers listed at the end of this guide or visit the charges and penalties. This allows us to consider Finance Canada Web site at extraordinary circumstances that may have prevented you www.fin.gc.ca/treaties/treatystatus_e.html. from fulfilling your obligations under the Income Tax Act. Any taxable amounts you paid or credited to persons in For details, go to www.cra.gc.ca/fairness or Information non-treaty countries will be subject to the 25% Part XIII Circular IC07-1, Taxpayer Relief Provisions. withholding tax. A Part XIII tax rate of 23% applies to the gross amounts paid, credited, or provided as a benefit for acting services What is Part XIII tax? rendered in Canada by a non-resident actor, including payments of residuals and contingent compensation. This rate applies only to the acting services of the actor in a film P art XIII tax is a withholding tax imposed on certain amounts you pay or credit to non-residents. These amounts include pensions, annuities, investment income, or video production. For more information, go to www.cra.gc.ca/filmservices and select interest, dividends, rents, royalties, estate or trust income, “Non-resident actors.” and payments for film or video acting services when you As the payer or agent, you are responsible for withholding pay or credit these amounts to individuals (including and remitting Part XIII tax at the correct rate. trusts) or corporations that are not resident in Canada. For more information about remitting, special reporting You are responsible for withholding Part XIII tax if you are: situations, and refund instructions, see Information ■ a Canadian resident who pays or credits Part XIII Circular IC77-16, Non-Resident Income Tax. amounts to a non-resident, or is considered to have done so under Part I or Part XIII of the Income Tax Act; Beneficial ownership ■ an agent (such as a bank, trust company, or credit union) To apply the appropriate rate of withholding tax, you can or person who, for a debtor, pays or credits Part XIII accept the payee’s name and address as that of the amounts when redeeming bearer coupons or warrants; beneficial owner, unless there is reasonable cause to suspect that the payee is not the beneficial owner. ■ an agent or another person who receives Part XIII amounts, for a non-resident, from which tax was not If the payee is an insurance corporation or pension trust, we withheld; or will accept the payee as the beneficial owner of amounts paid to a non-resident. However, that corporation or trust ■ any other payer (including a non-resident) who pays or has to invest only for itself and include the amounts when it credits amounts that are subject to Part XIII tax, or who is calculates its revenue. considered to have done so under Part I or Part XIII of the Income Tax Act. Although this list does not cover all situations, if any of the following criteria are met, it is reasonable to question For information about specific types of income that are whether the payee is the beneficial owner: subject to Part XIII tax, see Information Circular IC77-16, Non-Resident Income Tax. ■ The payee is known to act, even occasionally, as an agent or nominee (other than as an agent or nominee described Rates of Part XIII tax in paragraph 4 of Information Circular IC76-12, Applicable rate of part XIII tax on amounts paid or credited to persons in Non-residents have to pay Part XIII tax of 25% on taxable countries with which Canada has a tax convention). amounts. However, this rate can be reduced to a lower rate under the provisions of a bilateral tax treaty. ■ The payee is reported to be “in care of” another person, or “in trust.” If you pay or credit amounts subject to Part XIII tax to persons in countries that have tax treaties with Canada, ■ The mailing address for payment of the income is see Information Circular IC76-12, Applicable rate of part XIII different from the registered address of the owner. tax on amounts paid or credited to persons in countries with If you are not sure whether the payee is the beneficial which Canada has a tax convention. The information in that owner, the payee has to complete a certificate, as described circular also applies if you are considered, under Part I or in Information Circular IC76-12, and send it to you before Part XIII of the Income Tax Act, to have paid or credited you can apply a treaty’s reduced rate of withholding tax. amounts subject to Part XIII tax to residents of these treaty countries. You can use the online Part XIII Tax Calculator to determine your Part XIII tax liability. We developed this convenient and interactive tool to help you determine your tax liability in an accurate and timely manner. For more information, go to www.cra.gc.ca/partxiii-calculator. 6 www.cra.gc.ca Special payments Although we accept Form NR6 throughout the year, the effective date for withholding on the net amount will be the Pension and similar payments – Residents of first day of the month in which we receive the form. You all countries have to withhold tax on any gross rental income paid or A non-resident of Canada who receives pension or similar credited to a non-resident before that date. In all situations, payments and intends to file an income tax return in when Form NR6 is filed, you still have to report the gross Canada can apply to us for a reduction in the non-resident amount of rental income for the entire year on an NR4 slip tax that you have to withhold. To do this, the non-resident and use exemption code “H.” should use Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Film and video acting services Required to Be Withheld. When the request is processed, we A non-resident actor, who receives payments for acting will send a letter to the non-resident and the payer(s) services rendered in Canada and intends to file an income indicating any payments to which a tax reduction applies. tax return in Canada, can apply to us for a reduction in the You may not apply a tax reduction unless you receive non-resident tax that you have to withhold. written authorization from us. If you do receive our authorization, you must report the amounts paid or To do this, the non-resident should use Form T1287, credited on an NR4 slip and use exemption code “J.” Application by a Non-Resident of Canada (Individual) for a Reduction in the Amount of Non-Resident Tax Required to be Pension and similar payments – Residents of Withheld on Income Earned From Acting in a Film or Video Production or Form T1288, Application by a Non-Resident of certain countries Canada (Corporation) for a Reduction in the Amount of Non- Canada’s tax treaties with Algeria, Azerbaijan, Brazil, Resident Tax Required to be Withheld on Income Earned From Croatia, Cyprus, Ecuador, Ireland, Italy, New Zealand, Acting in a Film or Video Production. When these forms are Portugal (including Azores and Madeira), the Philippines, processed, we will send a letter to the non-resident and the Romania, Senegal, and Slovenia provide for an exemption payer indicating any payments to which a tax reduction from withholding tax for certain pension and similar applies. payments received in the year from Canada. A non-resident actor who resides in the United States, and If a non-resident receives more than one pension or similar makes less than $15,000 CAD from acting services payment from Canada, the exemption can be applied only performed in Canada, in the calendar year, may be eligible to a limited amount of the total payments that the for an exemption from tax under Article XVI of the non-resident receives. Each tax treaty specifies different Canada-United States Income Tax Convention. The actor types of pension and similar payments to which the can apply for a reduction of the non-resident tax that you exemption applies. Amounts over the limit, and payments have to withhold, as indicated above. that are not eligible for exemption, are subject to withholding tax at the applicable rate. To determine the You may not apply a tax reduction unless you receive exempt amounts, the non-resident has to give us an written authorization from us. If you do receive our estimate of the total pension and similar payments the authorization, you must report the amounts paid or non-resident expects to receive from each of the credited on an NR4 slip and use exemption code “J.” non-resident’s payers. For more information, go to www.cra.gc.ca/filmservices The non-resident provides this information and requests and select “Non-resident actors.” the exemption by filing Form NR5. When the request is processed, we will send a letter to the non-resident and the Mutual fund investment distributions payer(s) indicating any payments to which the exemption applies. You may not apply the exemption unless you Taxable Canadian property gains receive written authorization from us. distributions Non-residents who invest in Canadian mutual fund Rental income from real property in Canada investments may be subject to non-resident withholding tax A non-resident who receives rental income from real on capital gains distributions made by mutual fund trusts property in Canada can ask that payers or agents be and on capital gains dividends paid by mutual fund allowed to deduct tax on the net amount instead of the corporations from the disposition of taxable Canadian gross amount. To do this, the non-resident has to complete property (TCP). TCP includes real property in Canada, Form NR6, Undertaking to File an Income Tax Return by a Canadian resource properties, and Canadian timber Non-Resident Receiving Rent From Real Property or Receiving a resource properties. Timber Royalty. The non-resident has to file this form on or before January 1 of the tax year for which the request applies, or on or before the date the first rental payment is due. For corporations, estates, and trusts with a fiscal year-end other than December 31, they have to file Form NR6 on or before the first day of their fiscal year. www.cra.gc.ca 7 This non-resident tax applicable to TCP gains distributions Are you a new remitter? only applies if more than 5% of the total capital gains If you have never remitted non-resident income tax dividend paid by a mutual fund corporation and more than deductions, contact the International Tax Services Office at 5% of the total capital gains distribution paid by a mutual the numbers listed at the end of this guide. We will give fund trust are paid or designated for non-resident persons. you a non-resident tax account number and tell you how to Mutual fund trusts and mutual fund corporations have to remit your deductions. We will mail you Form NR75, maintain a separate TCP gains distribution account to track Non-Resident Tax Remitter Registration Form, which includes all capital gains for the disposition of TCP. The mutual a non-resident tax remittance voucher that you should fund has to report these amounts and the withholding tax return with your first remittance. on an NR4 slip. If you have not received Form NR75 in time to make your Assessable distributions first payment, prepare a letter that states: Non-residents who invest in Canadian property mutual ■ the name under which your account was opened, as well fund investments are subject to a 15% withholding tax on as your address and telephone number; any amount not otherwise subject to tax that they are paid or credited by the mutual fund. A Canadian property ■ the year and month your payment covers; and mutual fund investment is an exchange-listed mutual fund ■ your non-resident tax account number. that derives more than 50% of its unit or share value from real property in Canada, Canadian resource properties, or Send the letter together with your cheque or money order Canadian timber resource properties. The mutual fund has made payable to the Receiver General to the following to report these amounts, called assessable distributions, and address: the withholding tax on an NR4 slip. Generally, the 15% tax Canada Revenue Agency withheld on the assessable distributions is considered the 875 Heron Road final tax obligation to Canada on that income. Ottawa ON K1A 1B1 A non-resident investor may apply any loss realized on the CANADA disposition of a Canadian property mutual fund investment After you make your first remittance, we will send you against assessable distributions received, up to the amount Form NR76, Non-Resident Tax – Statement of Account, which of the total assessable distributions paid or credited on the includes a non-resident tax remittance voucher to include investment. The non-resident investor applies the loss and with your next remittance. can claim any resulting refund by filing Form T1262, Part XIII.2 Tax Return for Non-Resident's Investments in Canadian Mutual Funds. Unused amounts of this special How to remit form of capital loss, which can be used only for this Detach and return your completed non-resident tax purpose, may be carried back three tax years or carried remittance voucher from either Form NR75, Non-Resident forward indefinitely. Tax Remitter Registration Form, or Form NR76, Non-Resident Tax – Statement of Account, with your cheque or money order made payable to the Receiver General. Send it to the following address: Remitting deductions Canada Revenue Agency 875 Heron Road When to remit Ottawa ON K1A 1B1 You have to remit your non-resident tax deductions so that CANADA we receive them on or before the 15th day of the month following the month the amount was paid or credited to New payment method the non-resident. We consider the remittance to be received My Payment is a new payment option that allows on the date it is received at your Canadian financial individuals and businesses to make payments online, via institution or at the Canada Revenue Agency (CRA). the Canada Revenue Agency (CRA) Web site, from their Note account at a participating Canadian financial institution. If the due date is a Saturday, Sunday, or Canadian For additional information on this self-service option, go to public holiday, your remittance is due on the next www.cra.gc.ca/mypayment. business day. For a list of public holidays, go to www.cra.gc.ca/duedates. If you prefer to make your remittance at your financial institution in Canada, complete the remittance voucher of If your business or activity ceases during the year, you have Form NR75 or Form NR76, and present the completed form to remit your non-resident tax deductions so that we to the teller with your payment. The teller will detach and receive them no later than seven days after the day your keep the remittance voucher and return the top part of the business or activity ceases. form as your receipt. 8 www.cra.gc.ca It is important that you complete your remittance voucher Applying for a refund of tax accurately so that we can apply the payment to your account correctly. It is also important to use an original overpayments remittance voucher when you make your payment. To get a refund of excess or incorrectly withheld Part XIII Photocopied and faxed copies of remittance vouchers tax, a non-resident has to complete Form NR7-R, Application cannot be scanned by our payment processing technology for Refund of Part XIII Tax Withheld. The CRA has to receive and could delay the processing of your payment. this form no later than two years from the end of the calendar year in which the non-resident sent us the tax. Write your non-resident tax account number on the back of your cheque or money order. Do not staple, clip, tape, or Residents of Canada who receive an NR4 slip with fold the remittance voucher or your cheque. non-resident tax withheld can get a credit for the amount withheld by including the slip with their Canadian income Do not send cash in the mail. tax return. If you or your representative does not have a bank account For more information on Part XIII tax, see Information at a financial institution in Canada, you or your Circular IC77-16, Non-Resident Income Tax. representative can make your payment using: ■ an international money order drawn in Canadian dollars; ■ a bank draft in Canadian funds drawn on a Canadian NR4 slips financial institution (available at most foreign financial institutions); or When to complete the NR4 slip ■ a cheque drawn in the currency of the country in which You have to complete an NR4 slip for every non-resident to the financial institution is located. We will use the whom you paid or credited amounts that are subject to currency exchange rate in effect at the time of cashing withholding tax under Part XIII of the Income Tax Act. your cheque. You also have to complete an NR4 slip if you are Note considered, under Part I or Part XIII of the Income Tax Act, If you make a payment with a cheque that your financial to have paid or credited amounts. You have to complete institution does not honour (including a cheque on an NR4 slip even if you did not withhold tax on these which you put a stop payment), we will charge you a amounts, or you did not have to withhold tax on these fee. Generally, this fee will be $15 for each returned amounts due to an exemption under the Income Tax Act cheque. or a bilateral tax treaty. Non-Resident TeleReply Reporting limits If you are reporting a nil remittance of non-resident You have to report amounts on an NR4 slip if the gross income paid or credited during the year is $50 or more. withholding tax on your account, you can call However, if you paid less than $50 and you still withheld Non-Resident TeleReply at 1-866-971-4644. tax under Part XIII, you have to report the gross income For more information, go to and the tax withheld on an NR4 slip. www.cra.gc.ca/nonrestelereply. Total gross Report Missing or lost remittance voucher income paid Tax amounts on Even if you do not have a remittance voucher, you still or credited NR4 slip have to send us your payment by the due date. If you do Less than $50 Tax withheld Yes not receive a remittance voucher in time to make your next remittance, or if you have misplaced it, send your cheque or Less than $50 No tax withheld No money order payable to the Receiver General to the address Tax withheld or shown on the previous page. Include a short note that $50 or more Yes no tax withheld states your name, address, and non-resident account number, and the year and month covered by the payment. Customized NR4 slips Non-Resident Notice of Assessment, You may want to use your own customized NR4 slip. To Notice of Reassessment, or Notice get our written approval, send two samples of your proposed computer printed slips to: of Collection Business Integration Division If you receive Form NR81, Non-Resident Notice of Electronic and Print Media Directorate Assessment, Form NR82, Non-Resident Notice of Reassessment, Canada Revenue Agency or Form NR83, Non-Resident Notice of Collection, use only the Place de Ville, Tower A remittance vouchers attached to these forms to make your 320 Queen Street, 9th floor payment for any balance owing. Ottawa ON K1A 0L5 CANADA For more information, go to www.cra.gc.ca/customized. www.cra.gc.ca 9 Completing the NR4 slip Box 12 – Country code Follow the instructions in this section carefully. We may From the list in Appendix A, enter the three-letter code for have to return incorrectly completed NR4 slips to you for the country in which the recipient is a resident for tax corrections. purposes. Only use the codes listed in Appendix A. Generally, the recipient’s country for tax and mailing ■ Make sure your NR4 slips are easy to read. To help us purposes will be the same. However, if they are different, process your returns quickly and accurately, type or you must always enter the country of residency for tax machine-print your information slips. purposes. ■ Do not change the headings of any of the boxes. Payer or remitter identification number ■ Prepare separate NR4 slips whenever non-residents Enter the number your organization assigns to non-resident change their country of residence for tax purposes during payees. For example, if you are a financial institution, enter the year. the number assigned to your client (such as an annuitant ■ Report gross income (box 16 or 26) in Canadian funds. number or client number) in this box. If you do not use such a number, leave this area blank. ■ Report the tax withheld (box 17 or 27) in Canadian funds. ■ Use separate lines when you report income that is Box 13 – Foreign or Canadian tax identification number partially exempt. For example, if you are paying interest Enter the identification number assigned to the to a client and a part of the gross income is exempt from non-resident for tax purposes by their country of residence. Part XIII tax, report the taxable income on one line with If a non-resident does not give you an identification the withholding tax and the exempt income on another number, ask if a Canadian social insurance number (SIN) is line, with the correct exemption code indicated in box 18 available and enter the number here. or 28. Note ■ Report income on line 1 before you report income on If an identification number is not available, ask the line 2. non-resident if they have been assigned an individual tax number (ITN), a temporary tax number (TTN) or a Canadian payroll account number (15 characters) by us Completing the boxes and enter it here. If no number is available, leave the Box 10 – Year area blank. Enter the four digits of the calendar year in which you made the payment to the recipient. Box 14 or 24 – Income code Enter the appropriate numeric income code from the list in Box 11 – Recipient code Appendix B. For example, enter income code “31” to Enter the appropriate code from the following list: identify a lump-sum payment from a deferred profit sharing plan. Code Type of recipient Use the proper two-digit code. For example, copyright 1 individual royalties should be reported using “05” not “5.” 2 joint account 3 corporation Since January 1, 2009, Tax-Free Savings Account (TFSA) 4 other (for example, association, trust, including amounts paid during the exempt period to a non-resident fiduciary-trustee, nominee, estate, or partnership) beneficiary are subject to Part XIII tax to the extent they 5 government, government enterprise, or exceed the amounts designated by the trust. international organizations and agencies prescribed by regulation The exempt period is from the date of death of the holder of a TFSA governed by a trust to the end of the year following Note the year of death or the date the trust ceases to exist, if The prescribed international organizations and agencies earlier. are: We have added code 64 to report these amounts. For more ■ Bank for International Settlements information, see RC4477, Tax-Free Savings Account (TFSA) Guide for Issuers. ■ European Fund ■ International Bank for Reconstruction and Box 15 or 25 – Currency code Development All income and withholding tax should be reported in ■ International Development Association Canadian funds. Enter currency code CAD. If you cannot report the amounts in Canadian funds, enter the ■ International Finance Corporation three-letter code of the currency for the amounts reported as gross income (box 16 or 26) and tax withheld (box 17 ■ International Monetary Fund or 27). See Appendix D on page 20 for a list of the currency ■ European Bank for Reconstruction and Development codes. 10 www.cra.gc.ca Note Enter the recipient’s full mailing address as follows: If you cannot convert gross income and tax withheld, we Lines 1 and 2 – Enter the street address, (civic number, will convert both amounts to Canadian funds, based on street name, and post office box number or rural route the currency code and the average annual exchange rate number). as published by the Bank of Canada on December 31 of each year. Report the amounts in gross income and tax Line 3 – withheld in the same currency as indicated by the currency code. ■ For Canadian addresses, enter the city, two-letter provincial or territorial code (as found in Appendix E), and the postal code. Box 16 or 26 – Gross income Enter in Canadian funds the gross income you paid or ■ For U.S. addresses enter the city, two-letter state, credited to non-residents of Canada if: territory or possession code (as found in Appendix E), and the zip code. ■ the amount paid or credited, or deemed paid or credited under Part I or Part XIII of the Income Tax Act is $50 or ■ For addresses outside Canada and the United States more; or enter the postal code and then the city name. ■ any amount under Part XIII has been withheld. Line 4 – Enter the full country name (if Canada, leave blank but enter CAN in the country code box). In addition, payers of rental income have to enter the gross rental income, and film industry payers have to enter the Country code – Enter the three-letter country code from gross income for acting services, even if no tax was Appendix A that corresponds to the country you indicated withheld on some or all of the income. See the Note under on line 4. This country code is for mailing purposes only. “Box 15 or 25 – Currency code.” Name and address of agent or payer Box 17 or 27 – Non-resident tax withheld Enter your full name and address. Enter in Canadian funds the amount of non-resident tax you withheld. If you cannot convert foreign funds to Non-resident account number Canadian currency, complete box 15 or 25 (Currency code), Enter the account number under which you remit your in order to clearly indicate on the NR4 slip the currency of non-resident tax deductions to us. This number has to the tax you withheld. This will help us and the match the account number shown on the remittance part of non-resident. See the Note under “Box 15 or 25 – Currency Form NR76, Non-Resident Tax – Statement of Account. code.” Note Distributing the NR4 slips For box 16 or 26 (Gross income), and box 17 or 27 You must give recipients their NR4 slips on or before the (Non-resident tax withheld), individuals and corporations last day of March following the calendar year to which report income based on the calendar year and estates and the slips apply. For estates or trusts, provide the copies no trusts report income based on the fiscal year end. later than 90 days after the end of the estate’s or trust’s tax year. Box 18 or 28 – Exemption code Enter the exemption code that applies from the list in Print the two NR4 slips that you have to give to each Appendix C. This code gives the authority under the recipient on one sheet. For security purposes, do not print Income Tax Act or a bilateral tax treaty to exempt the your payer or remitter identification number on these amount from Part XIII withholding tax, or to apply a copies. reduced withholding rate, as a result of certain elections. Provide the recipients with: If no tax is withheld, the correct exemption code must be ■ two copies, sent by mail to their last known address; included. ■ two copies, delivered in person; or Non-resident recipient’s name and address ■ one copy distributed electronically (for example, by If you are preparing the NR4 slip for an individual, enter e-mail) if you have received the recipient’s consent in their last name, followed by the first name and initial. writing or electronic format. Otherwise, enter the name of the corporation, organization, association, trust, or institution. Keep a copy of the NR4 slips for your records. If it applies, enter the second recipient’s name (if this is not Note a joint account or there is only one recipient, leave this line If NR4 slips are returned as undeliverable, we suggest blank). that you retain the slips with the non-resident’s file. Note Do not enter the name of the secretary-treasurer or any other individual who has signing authority. www.cra.gc.ca 11 Box 84 – Overpayment NR4 Summary If the amount from box 82 is more than the amount in box 32 (and you do not have to file another return for this T he NR4 Summary records the totals of amounts that you report on NR4 slips and on Form NR601, Non-Resident Ownership Certificate – Withholding Tax, and account number), enter the difference in box 84. Attach a note indicating the reason for the overpayment and whether you want us to transfer this amount to another Form NR602, Non-Resident Ownership Certificate – No account or another year, or refund the overpayment to you. Withholding Tax. Box 86 – Balance due Completing the NR4 Summary If the amount in box 32 is more than the amount in box 82, Use the information on the NR4 slips, Forms NR601, and enter the difference in box 86. If you have a balance due, NR602 to complete the summary, as described below. All enclose, with the NR4 Summary, a cheque or money order amounts should be entered in Canadian funds. payable to the Receiver General for the balance owing. If you remit your payment late, any balance due may be subject to penalties and interest at the prescribed rate. Year end or fiscal year end Enter the four digits of the calendar year to which the Boxes 76 and 78 – Person to contact about this return information return relates or the applicable fiscal year end. Enter the name and phone number of a person that we can contact for more information. Box 1 – Non-resident account number Enter the account number under which you remit your Certification non-resident tax deductions to us. This number has to match the account number shown on the remittance part of An authorized officer has to sign the NR4 Summary to Form NR76, Non-Resident Tax – Statement of Account. confirm that the information is correct and complete. Box 88 – Total number of NR4 slips filed Enter the total number of all the slips included with this NR4 information return summary. Boxes 18 and 22 – Amounts reported on NR4 slips Add the amounts in boxes 16 and 26 from all slips. Enter T he NR4 information return is due on or before the last day of March following the calendar year to which the information return applies, or no later than 90 days after the total in box 18. the end of the estate’s or trust’s tax year. If March 31 falls Add the amounts in boxes 17 and 27 from all slips. Enter on a Saturday, Sunday, or Canadian public holiday, your the total in box 22. return is due the next business day. An NR4 information return must be completed even if any Boxes 26 and 28 – Amounts reported on Forms NR601 of Forms NR5, NR6, T1287, T1288 or an actor election has or NR602 been filed. Add the gross income you reported on Forms NR601 If your business or activity ceases during the year, you have and NR602. Enter the total in box 26. to file an NR4 information return within 30 days of ending Add the non-resident tax amounts you reported on your business or stopping your activity. Form NR601. Enter the total in box 28. Filing over the Internet Box 30 – Total Add the amounts reported in boxes 18 and 26. Enter the If you file 1 to 50 NR4 information slips, we encourage you total in box 30. to file over the internet in eXtensible mark-up language (XML) by Internet File Transfer. You will get immediate confirmation that we received your information return. Box 32 – Total non-resident tax withheld However, you can file up to 50 NR4 information slips on Add the amounts reported in boxes 22 and 28. Enter the electronic media (DVD, CD, or diskette), or on paper. total in box 32. Effective January 1, 2010, if you file more than 50 Box 82 – Minus: Total remittances for the year NR4 information slips for a calendar year; you must file the Enter the total you remitted to your non-resident tax return over the Internet. account for 2009. If you do not you are liable to a penalty. See “Penalties and interest” on page 5. Difference Subtract box 82 from box 32. Enter the difference in the space provided. If there is no difference between the total non-resident tax withheld and the remittances for the year, enter “nil” in box 86. Generally, we do not charge or refund a difference of $2 or less. 12 www.cra.gc.ca Internet File Transfer After you file If you use commercial, or in-house developed software to manage your business, you can file up to 150 MB by Internet File Transfer. Go to www.cra.gc.ca/file-xml for more information. W hen we receive your information return, we check it to see if you have prepared it correctly. After an initial review, we enter your return into our processing system, which captures the information and performs If your return is more than 150 MB, you can either various validity and balancing checks. If there are any compress your return or you can divide it so that each problems, we may contact you. submission is no more than 150 MB. Internet filing is available from January 11, 2010, to early Amending, cancelling, adding, or December 2010. replacing slips To file your NR4 return by Internet File Transfer, you need If you notice errors on the slips before you file them with a Web access code (WAC). If you qualify, you will receive a us, you can correct them by preparing new slips and letter providing you with your WAC. If you do not receive removing any incorrect copies from the return. If you do your WAC, by the end of February 2010, call our help desk not prepare a new slip, initial any changes you make on the at 1-877-322-7849. From outside Canada and the United slip. Make sure you correct the summary. States, call us collect at 204-984-0120. Electronic media Amending slips After you file your information return, you may notice that If you file 1 to 50 NR4 information slips you may file using you made an error when preparing the NR4 slips. If so, you electronic media (DVD, CDs and diskettes), however we will have to prepare amended slips to correct the encourage you to file over the Internet in eXtensible mark- information. up language (XML) by Internet File Transfer. For an explanation of the technical specifications and instructions Note you need to file on electronic media (DVD, CD, or diskette), You are not allowed to file an amended slip, or cancel go to www.cra.gc.ca/electronicmedia. a slip in the following situations: Note ■ Part XIII tax was deducted in error from amounts In future years, the CRA will be discontinuing the use of paid to a Canadian resident; or electronic media (DVDs, CDs, and diskettes). ■ excessive Part XIII tax was deducted from amounts paid or credited to a non-resident. Filing on paper For more information about these situations, see We encourage you to file in eXtensible mark-up language “Applying for a refund of tax overpayments“ on page 9. (XML) format by Internet File Transfer. You will get immediate confirmation that we received your information Amending slips electronically return. See “Filing over the Internet” on the previous page. For information on amending slips electronically, see However, you can file up to 50 NR4 slips on paper. www.cra.gc.ca/file-xml and select “Amending returns.” Send your completed paper NR4 information return to: Amending paper slips Ottawa Technology Centre Canada Revenue Agency You may find other types of errors on NR4 slips after you 875 Heron Road have filed them or have sent copies to non-residents. In Ottawa ON K1A 1G9 these situations, prepare amended slips. When you amend CANADA a slip, complete all the necessary boxes, including the information that was correct on the original slip. When you send us copies of the slips, print two NR4 slips to a page. This will allow us to process your information Clearly identify the amended slips by writing return faster. “AMENDED” at the top of the slips. Send two copies of the amended slips to the non-resident the same way you sent Complete one copy of the NR4 slip for each non-resident to the originals. send with your NR4 Summary. Enter the information for two different non-residents on one sheet. You can keep If you have to change financial data on the amended slips, copies of the slips and summary for your files. prepare and file an amended NR4 Summary showing the revised totals. Clearly write “AMENDED” at the top of the Print the two NR4 slips that you have to give to each summary. non-resident on one sheet. For security purposes, do not print your payer or identification number on these copies. Mail one copy of the amended slips, along with a letter of explanation, to the International Tax Services Office at the address listed at the end of this guide. www.cra.gc.ca 13 Cancelling slips Form NR601, Non-Resident Ownership Cancelling slips electronically Certificate – Withholding Tax A cancelled slip is considered the same as an amended slip. If you are an encashing agent, use Form NR601 to report For information on cancelling slips electronically, go to interest, dividend coupons, or warrants that require you to www.cra.gc.ca/file-xml and select “Amending returns.” withhold Part XIII non-resident tax. Complete the following items on Form NR601: Cancelling paper slips ■ name of owner; Send us a copy of the original clearly marked “CANCELLED.” Send two copies of the amended slips to ■ description of security; the non-resident the same way you sent the originals. File ■ taxable amount and tax withheld; an NR4 Summary for the cancelled slips showing the revised totals. Clearly write “CANCELLED” at the top of ■ beneficial owner’s name and country of residence; and the summary. ■ encashing agent’s name, address, telephone number, Mail your amended slips and summary, along with a letter and non-resident account number. of explanation, to the International Tax Services Office at the address listed at the end of this guide. Form NR602, Non-Resident Ownership Certificate – No Withholding Tax Adding slips If you are an encashing agent, use Form NR602 to report After you file your NR4 information return, you may interest, dividend coupons, or warrants that do not require discover that you need to send us additional NR4 slips. If you to withhold Part XIII non-resident tax. Complete the you have original slips that were not filed with your return, following items on Form NR602: file them in a separate original return. You have to file the additional slips electronically if the number of NR4 slips ■ beneficial owner’s name and address; filed using the same payer or remitter identification ■ encashing agent’s name, address, telephone number, and number totals more than 50 slips for the same calendar non-resident account number; year. ■ description of security; Adding slips electronically ■ total amount received in Canadian funds; and We accept additional original NR4 slips in electronic format. Go to www.cra.gc.ca/file-xml and select ■ certification (the reason a payment is exempt from “Amending returns.” Part XIII withholding tax). The owner or agent has to certify that the information given Adding slips on paper on Form NR601 or Form NR602 is true and correct. If you file new slips after you have filed your return, clearly identify them as “ADDITIONAL.” File an NR4 Summary for the additional slips showing the revised totals. Clearly Distributing copies write “ADDITIONAL” at the top of the summary. Copy 1 – Send copy 1 of Form NR601 or Form NR602 (or both) to the International Tax Services Office, at the address Mail your additional slips and summary, along with a letter listed at the end of this guide. You have to do this no later of explanation, to the International Tax Services Office at than the 15th day of the month following the cashing of the the address listed at the end of this guide. interest coupons or dividend warrants. Replacing slips Copy 2 – Give copy 2 of Form NR601 or Form NR602 to the non-resident owner or agent at the time of the cashing. If you issue NR4 slips to replace copies that are lost or destroyed, do not send us a copy. Clearly identify them as Copy 3 – Keep copy 3 of Form NR601 or Form NR602 for “DUPLICATE” copies, and keep them with your records. your records. The information on these forms will help you complete your NR4 Summary. For details, see “Boxes 26 and 28 – Amounts reported on Forms NR601 or NR602“on page 12. Special reporting situations Non-resident ownership certificates If you are an agent or another person who pays interest or dividends when bearer coupons or warrants are redeemed for a non-resident, you have to complete one of the following forms: ■ Form NR601, Non-Resident Ownership Certificate – Withholding Tax, if you withheld non-resident tax; or ■ Form NR602, Non-Resident Ownership Certificate – No Withholding Tax if you did not withhold non-resident tax. 14 www.cra.gc.ca Appendix A – Country codes E nter the appropriate three-letter code in box 12 of the NR4 slip. Please note that these codes should also be used in the address portion of the NR4 slip. AFG Afghanistan COK Cook Islands ISL Iceland ALA Åland Islands CRI Costa Rica IND India ALB Albania CIV Côte d’Ivoire (Ivory Coast) IDN Indonesia DZA Algeria HRV Croatia IRN Iran, Islamic Republic of ASM American Samoa CUB Cuba IRQ Iraq AND Andorra CYP Cyprus IRL Ireland AGO Angola CZE Czech Republic IMN Isle of Man AIA Anguilla ISR Israel ATA Antarctica DNK Denmark ITA Italy ATG Antigua and Barbuda DJI Djibouti ARG Argentina DMA Dominica JAM Jamaica ARM Armenia DOM Dominican Republic JPN Japan ABW Aruba JEY Jersey AUS Australia ECU Ecuador JOR Jordan AUT Austria EGY Egypt AZE Azerbaijan SLV El Salvador KAZ Kazakhstan AZO Azores GNQ Equatorial Guinea KEN Kenya ERI Eritrea KIR Kiribati BHS Bahamas EST Estonia PRK Korea, Democratic People’s BHR Bahrain ETH Ethiopia Republic of (North) BGD Bangladesh KOR Korea, Republic of (South) BRB Barbados FLK Falkland Islands (Malvinas) KWT Kuwait BLR Belarus FRO Faroe Islands KGZ Kyrgyzstan BEL Belgium FJI Fiji BLZ Belize FIN Finland LAO Lao People’s Democratic BEN Benin FRA France Republic BMU Bermuda GUF French Guiana LVA Latvia BTN Bhutan PYF French Polynesia LBN Lebanon BOL Bolivia, Plurinational ATF French Southern Territories LSO Lesotho State of (including Amsterdam LBR Liberia BIH Bosnia and Herzegovina Island, Crozet Islands, the LBY Libyan Arab Jamahiriya BWA Botswana Kerguelen Islands, and LIE Liechtenstein BVT Bouvet Island Saint-Paul Island) LTU Lithuania BRA Brazil LUX Luxembourg IOT British Indian Ocean GAB Gabon Territory GMB Gambia MAC Macao BRN Brunei Darussalam GEO Georgia MKD Macedonia, the former BGR Bulgaria DEU Germany Yugoslav Republic of BFA Burkina Faso (Upper Volta) GHA Ghana MDG Madagascar BDI Burundi GIB Gibraltar MDR Madeira GRC Greece MWI Malawi KHM Cambodia (Kampuchea) GRL Greenland MYS Malaysia CMR Cameroon GRD Grenada MDV Maldives CMP Campione GLP Guadeloupe MLI Mali CNP Canary Islands GUM Guam MLT Malta CPV Cape Verde GTM Guatemala MHL Marshall Islands CYM Cayman Islands GGY Guernsey MTQ Martinique CAF Central African Republic GIN Guinea MRT Mauritania TCD Chad GNB Guinea-Bissau MUS Mauritius CHL Chile GUY Guyana MYT Mayotte CHN China (mainland) MEX Mexico CXR Christmas Island (Australia) HTI Haiti FSM Micronesia, Federated CCK Cocos (Keeling) Islands HMD Heard Island and McDonald States of COL Colombia Islands MDA Moldova, Republic of COM Comoros VAT Holy See (Vatican City State) MCO Monaco COG Congo HND Honduras MNG Mongolia COD Congo, the Democratic HKG Hong Kong MNE Montenegro Republic of the (formerly HUN Hungary MSR Montserrat Zaire) www.cra.gc.ca 15 MAR Morocco REU Réunion TWN Taiwan MOZ Mozambique ROU Romania TJK Tajikistan MMR Myanmar (Burma) RUS Russian Federation TZA Tanzania, United Republic RWA Rwanda of NAM Namibia THA Thailand NRU Nauru BLM Saint Barthélemy TLS Timor-Leste NPL Nepal SHN Saint Helena TGO Togo NLD Netherlands KNA Saint Kitts and Nevis TKL Tokelau ANT Netherlands Antilles LCA Saint Lucia TON Tonga (Bonaire, Curaçao, MAF Saint Martin TTO Trinidad and Tobago St. Maarten) SPM Saint Pierre and Miquelon TUN Tunisia NCL New Caledonia VCT Saint Vincent and the TUR Turkey NZL New Zealand Grenadines TKM Turkmenistan NIC Nicaragua WSM Samoa TCA Turks and Caicos Islands NER Niger SMR San Marino TUV Tuvalu NGA Nigeria STP Sao Tome and Principe NIU Niue SAU Saudi Arabia UGA Uganda NFK Norfolk Island SEN Senegal UKR Ukraine GBR Northern Ireland SRB Serbia ARE United Arab Emirates MNP Northern Mariana Islands SYC Seychelles GBR United Kingdom NOR Norway SLE Sierra Leone (including Northern Ireland) SGP Singapore USA United States OMN Oman SVK Slovakia (Slovak Republic) UMI United States Minor SVN Slovenia Outlying Islands PAK Pakistan SLB Solomon Islands URY Uruguay PLW Palau SOM Somalia UZB Uzbekistan PSE Palestinian Territory, ZAF South Africa Occupied SGS South Georgia and the South VUT Vanuatu (New Hebrides) PAN Panama Sandwich Islands VEN Venezuela, Bolivarian PNG Papua New Guinea ESP Spain Republic of PRY Paraguay LKA Sri Lanka VNM Viet Nam PER Peru SDN Sudan VGB Virgin Islands, British PHL Philippines SUR Suriname VIR Virgin Islands, U.S. PCN Pitcairn SJM Svalbard and Jan Mayen POL Poland SWZ Swaziland WLF Wallis and Futuna PRT Portugal SWE Sweden ESH Western Sahara PRI Puerto Rico CHE Switzerland SYR Syrian Arab Republic YEM Yemen QAT Qatar ZMB Zambia ZWE Zimbabwe 16 www.cra.gc.ca Appendix B – Income codes E nter the appropriate income code in box 14 or 24 of the NR4 slip. Use the correct two-digit code. For example, for copyright royalties, use code “05,” not “5.” Pension and similar payments Mutual fund investment distributions Deferred profit-sharing plans (DPSP) Taxable Canadian Property (TCP) 07 DPSP – Periodic payments 57 TCP gains distribution – Capital gains dividends paid 31 DPSP – Lump-sum payments by mutual fund corporations 58 TCP gains distribution – Capital gains distributions Registered disability savings plan (RDSP) made by mutual fund trusts 63 RDSP Assessable distributions Tax Free Savings Account (TSFA) 59 Assessable distributions paid or credited by a 64 TFSA - taxable amount Canadian property mutual fund investment Registered retirement income funds (RRIF) corporation 26 RRIF – Periodic payments* 60 Assessable distributions paid or credited by a 27 RRIF – Lump-sum payments* Canadian property mutual fund investment trust Registered retirement savings plans (RRSP) Interest and dividends 28 RRSP – Periodic payments 29 RRSP – Refund of premiums Interest 30 RRSP – Refund of excess amounts 61 Arm’s length interest payments 32 RRSP – Deemed receipt on deregistration 62 Non-arm’s length interest payments 33 RRSP – Deemed receipt on death Dividends 43 RRSP – Lump-sum payments 08 Dividends paid by Canadian subsidiaries to foreign Superannuation or pension benefits parent corporations 39 Superannuation or pension benefits – Periodic 09 Dividends – Other payments 40 Superannuation or pension benefits – Lump-sum Rents, royalties, and franchise payments payments 05 Copyright royalties Other payments 12 Franchise and similar rights 02 Other – Periodic payments 13 Gross rents from real property 03 Other – Lump-sum payments 23 Natural resource royalties 04 Automotive products – Assistance benefits 35 Research and development royalties 06 Death benefit (other than Canada Pension Plan or 38 Royalties and similar payments for the use of, or the Quebec Pension Plan) right to use, other properties 14 Income averaging annuity contracts – Report all 52 Timber royalties benefits including lump-sum payments on proceeds of disposition of these contracts Miscellaneous payments 34 Registered supplementary unemployment benefits 10 Energy conversion grants 36 Retiring allowance 11 Estate and trust income 37 Retirement compensation arrangements 21 Management or administrative fee or charge 41 Textile, clothing, and leather goods – Assistance and 22 Motion picture films and films or videotape, etc. for superannuation or pension benefits TV use Social security benefits 24 Registered education savings plan 25 Registered home ownership savings plan 44 Old Age Security payments (regular benefits)** 53 Eligible funeral arrangements 45 Net federal (guaranteed income) supplement** 54 Film and video acting services 46 Taxable Canada Pension Plan (CPP) benefits 55 Film and video acting services – Contingent 47 Disability benefits – CPP compensation 48 CPP death benefits – Lump-sum payments 56 Film and video acting services – Residuals 49 Taxable Quebec Pension Plan (QPP) benefits 50 Quebec Pension Plan (QPP) – Disability benefits 51 QPP death benefits – Lump-sum payments 88 Old Age Security recovery tax * For information about RRIF-periodic and lump-sum payments to a non-resident, contact the International Tax Services Office. ** Old Age Security benefits and net federal supplements will be issued on a NR4(OAS) slip. www.cra.gc.ca 17 Appendix C – Exemption codes Code Description References Exemptions applicable to dividends only Capital gains dividends and dividends from a foreign business corporation: Income Tax Act, subsections 212(2) Exemption for capital gains dividends described in any of subsections 130.1(4), and 131(5.1) 131(1), or 133(7.1) of the Income Tax Act. This exemption does not apply to the portion of a capital gains dividend described in subsection 131(1) that represents M a taxable Canadian property (TCP) gains distribution. The TCP gains distribution is considered a taxable dividend subject to withholding tax. Exemption for certain dividends paid for a share of the capital stock of a foreign Income Tax Act, section 213 business corporation. Exemptions applicable to rents, royalties, and similar payments only Copyright royalties: Exemption for a royalty or a similar payment, if the Income Tax Act, G payment is made on, or for, a copyright for the production or reproduction of any subparagraph 212(1)(d)(vi) literary, dramatic, musical, or artistic work. Certain rental and leasing payments: Exemption for payments made under Income Tax Act, N certain leasing arrangements involving railway rolling stock, corporeal property subparagraphs 212(1)(d)(vii), used outside Canada, and aircraft. 212(1)(d)(ix) and 212(1)(d)(xi) Cost-sharing arrangements: Exemption for payments made under a bona fide Income Tax Act, O cost-sharing arrangement for research and development expenses. subparagraph 212(1)(d)(viii) Authorization to apply a reduced rate of withholding Rents from real property and timber royalties: A reduction was approved by Income Tax Act, section 216 the Canada Revenue Agency allowing Canadian agents who receive rent from H real property or timber royalties for non-residents to withhold tax on the net rental income rather than on the gross rental income. Pension and similar payments, and acting services: A reduction was Income Tax Act, section 217 and approved by the Canada Revenue Agency allowing payers to withhold tax at a subsection 212(5.3) J lower rate on certain pensions and similar payments, or on payments made for the acting services of a non-resident actor in a film or video production. Exemptions applicable to management or administration fees or charges Management or administration fees or charges: Exemption under a tax Income Tax Act, subsection 212(4) P convention between Canada and another country (business profits article) or in or business profits article of a tax the Income Tax Act on management or administration fees or charges. convention signed by Canada. Exemptions for payments made to non-resident tax-exempt persons Article XXI of the U.S. tax convention: Exemption for organizations that have Information Circular IC77-16, received a letter of exemption under Article XXI of the Canada-United States Non-Resident Income Tax. I Income Tax Convention. The letter must be in force when the amount is paid or credited. 18 www.cra.gc.ca Code Description References Other exemptions Payments to a non-resident that carries on a business in Canada through a Dividend, interest, or royalties article of a permanent establishment in Canada: Exemption under a tax convention tax convention signed by Canada between Canada and another country on dividend, interest, and royalty payments. For example, under the Canada-United States Income Tax Q Convention, these payments may be exempt if the beneficial owner of the payments carries on a business in Canada through a permanent establishment in Canada, or performs independent personal services from a fixed base in Canada, and if the holding, debt-claim, or property or right for which the payment is made is effectively connected with the permanent establishment or fixed base. Payments made for a business carried on in a country other than Canada: Income Tax Act, Exemption on certain arm’s length royalty payments to the extent that the subparagraph 212(1)(d)(x) amounts are deductible in calculating the income of the payer under Part I from a business carried on by the payer in a country other than Canada. R Exemption under a tax convention between Canada and another country (for example, under the Canada-United States Income Tax Convention) if the payer has, Interest and royalties article of a tax in a country other than Canada, a permanent establishment or fixed base in convention signed by Canada connection with which the obligation to pay the interest or royalty was incurred, and the payments are deducted against the income of the permanent establishment or fixed base. Other exempting provisions – Income Tax Act: Exemption from withholding S tax as a result of other exempting provisions in the Income Tax Act, other than those given above in code G, M through P, R, and U. Other exempting provisions: Exemption from withholding tax as a result of T other exempting provisions of a tax convention, other than those given above in codes I, and P through R. Exemption from withholding tax on payments of certain reasonable travel Income Tax Act, subsection 212(5.1) U expenses and per diem amounts reimbursed to a non-resident actor. www.cra.gc.ca 19 Appendix D – Currency codes U se the correct three-letter code in box 15 or 25 of the NR4 slips. The amounts entered for gross income and tax withheld are reported in the same currency as indicated by the currency code. We will convert amounts reported in foreign currency to Canadian funds based on the average annual exchange rate published by the Bank of Canada. Most frequently used Currency Currency code Currency code Currencies 1 Indian rupee INR Canadian dollar CAD Indonesian rupiah IDR 1 United States dollar USD Israeli new shekel ILS Australian dollar 1 AUD Jamaican dollar JMD 1 Japanese yen JPY Euro EUR Malaysian ringgit MYR Hong Kong dollar HKD Mexican peso MXN Philippine peso PHP Moroccan dirham 1 MAD 1 Pound sterling GBP Myanmar kyat MMK Other Currencies Currency code Netherlands Antillian guilder ANG 1 Argentine peso New Zealand dollar NZD ARS 1 Bahamian dollar Norwegian krone NOK BSD Brazilian real Pakistan rupee PKR BRL Chilean peso Panamanian balboa PAB CLP Chinese yuan renminbi Peruvian nuevo sol PEN CNY Colombian peso Polish zloty PLN COP Communauté Financière Serbian dinar RSD XOF 1,2 Africaine Franc BCEAO Singapore dollar SGD Communauté Financière XAF South Korean won KRW 1, 3 Africaine Franc BEAC Sri Lanka rupee LKR Comptoirs Français du XPF Pacifique franc (CFP) 1 Swedish krona SEK 1 Croatian kuna HRK Swiss franc CHF Czech koruna CZK Taiwan new dollar TWD Danish krone 1 DKK Thai baht THB East Caribbean dollar 1 XCD Trinidad and Tobago dollar TTD Fiji dollar FJD Tunisian dinar TND Ghana cedi GHS Turkish lira TRY Guatemalan quetzal GTQ United Arab Emirates dirham AED Honduran lempira HNL Venezuelan bolivar fuerte VEF Hungarian forint HUF Vietnamese dong VND Iceland krona ISK 1 This currency is also used in other countries. For more information, refer to the International Standard (ISO) 4217 called the Codes for the Representation of Currencies and Funds. 2 Responsible authority: Banque Centrale des États de l’Afrique de l’Ouest 3 Responsible authority: Banque des États de l’Afrique Centrale 20 www.cra.gc.ca Appendix E – Province, territory or U.S. state, territory, or possession codes U se the following abbreviations when you enter the Canadian province or territory, or U.S. state, territory or possession on the slip and summary. Canada Province or territory Code Province or territory Code Alberta AB Nunavut NU British Columbia BC Ontario ON Manitoba MB Prince Edward Island PE New Brunswick NB Quebec QC Newfoundland and Labrador NL Saskatchewan SK Northwest Territories NT Yukon YT Nova Scotia NS United States State, territory or possession Code State, territory or possession Code Alabama AL Minnesota MN Alaska AK Minor Outlying Islands UM American Samoa AS Mississippi MS Arizona AZ Missouri MO Arkansas AR Montana MT Armed Forces Americas (except Canada) AA Nebraska NE Armed Forces Africa Nevada NV Armed Forces Canada AE New Hampshire NH Armed Forces Europe New Jersey NJ Armed Forces Middle East New Mexico NM Armed Forces Pacific AP New York NY California CA North Carolina NC Colorado CO North Dakota ND Connecticut CT Northern Mariana Islands MP Delaware DE Ohio OH District of Columbia DC Oklahoma OK Florida FL Oregon OR Georgia GA Palau PW Guam GU Pennsylvania PA Hawaii HI Puerto Rico PR Idaho ID Rhode Island RI Illinois IL South Carolina SC Indiana IN South Dakota SD Iowa IA Tennessee TN Kansas KS Texas TX Kentucky KY Utah UT Louisiana LA Vermont VT Maine ME Virgin Islands VI Marshall Islands MH Virginia VA Maryland MD Washington WA Massachusetts MA West Virginia WV Michigan MI Wisconsin WI Micronesia (Federation states of) FM Wyoming WY www.cra.gc.ca 21 For more information I f you need more information after you read this guide about Part XIII tax and NR4 situations not covered in this guide contact the International Tax Services Office. For services performed in Ontario, Nunavut, the Northwest Territories, and Yukon Toronto Centre Tax Services Office Film Services Unit To get forms and publications, go to www.cra.gc.ca/forms 1 Front Street West or contact the International Tax Services Office. Toronto ON M5J 2X6 International Tax Services Office Telephone: ....416-954-4791 or 416-954-4792 Canada Revenue Agency Fax: ................416-954-8528 2204 Walkley Road Ottawa ON K1A 1A8 For services performed in Quebec, Prince Edward Island, CANADA New Brunswick, Nova Scotia, and Newfoundland and Labrador ■ 1-800-267-3395 From anywhere in Canada and the Montréal Tax Services Office United States Film Services Unit ■ 613-952-2344 From the Ottawa area and outside 7th floor Canada and the United States 305 René-Lévesque Boulevard West Montréal QC H2Z 1A6 ■ 613-941-6905 Fax Telephone: ....514-283-0512 We accept collect calls. Fax: ................514-496-4574 Electronic Media Processing Unit Ottawa Technology Centre Teletypewriter users Canada Revenue Agency 875 Heron Road If you use a teletypewriter (TTY), you can call our bilingual Ottawa ON K1A 1A2 enquiry service at 1-800-665-0354. Film services units Your opinion counts For more information on payments for acting services in a If you have any comments or suggestions that could help film or video production, go to www.cra.gc.ca/filmservices us improve our publications, we would like to hear from and select “Non-resident actors.” you. Please send your comments to: You can also contact a Film Services Unit at the following Taxpayer Services Directorate addresses and numbers: Canada Revenue Agency 750 Heron Road For services performed in British Columbia, Alberta, Ottawa ON K1A 0L5 Saskatchewan, and Manitoba Vancouver Tax Services Office Film Services Unit, 447-14 1166 West Pender Street Vancouver BC V6E 3H8 Telephone: ... 604-775-7918 Fax: ................ 604-666-9670 22 www.cra.gc.ca Canada Revenue Agency Electronic Services Get the answers you need all year long, right at your fingertips, by using the Canada Revenue Agency’s secure electronic services. Access tax information, file a return, register a business, get client information, make online requests, use payroll services, make an electronic payment, download or order forms and publications, and more! Electronic services www.cra.gc.ca/electronicservices My Business Account www.cra.gc.ca/mybusinessaccount Represent a client www.cra.gc.ca/representatives Corporation Internet Filing www.cra.gc.ca/corporation-internet Filing information returns www.cra.gc.ca/iref GST/HST NETFILE www.cra.gc.ca/gsthst-filing GST/HST TELEFILE Electronic payments www.cra.gc.ca/electronicpayments Direct deposit www.cra.gc.ca/dd-bus My Account www.cra.gc.ca/myaccount Want tips on various tax-related topics? Go to www.cra.gc.ca/taxtips. For more information, visit www.cra.gc.ca.