There is always a provision in the income tax law books of most countries that any person who is working and living in a country and is not a resident of that country will have to pay non resident taxes. This is also the case if you live and work in Canada. Any non-resident who is living or working in Canada and who is not a resident of any place in Canada will have to pay nonresident tax according to the regulations and the norms that are printed in the nonresident taxation policy derived from the Canadian Revenue Agency. If you are a person who is living in Canada and rendering your services for a Canadian company in Canada, then you should be aware of the rights, obligations and the entitlements that you need to face when you receive your work wages or income.

Nonresident Taxation

If you are working and living in Canada and are offering your services in Canada, then you need to pay Canadian income tax on the income that you earn by doing your services for a company in Canada. You might have been hired by the company in Canada to render regular services for a long time or might be offered a job that requires your services for a stipulated period of time. There are different rules for different kinds of jobs that you do in Canada.

Withholding of Your Income

If you are employed in Canada on a regular basis for any company, then a certain amount of money will be withheld from your income by the person who is paying you the money. This will be deducted from your payment right at your employer’s end and an information slip will be handed over to you wherein the details of the amount deducted from your income would be mentioned. Generally, the percentage of the amount that is deducted from your income would be about 15% of your gross income and the employer who deducts the amount will need to remit the amount as a non-resident tax to the Receiver General of Canada.

This is the Canadian taxation of non-residents norms for deducting the income tax at source. It is the duty of the employer to remit the amount as non-resident tax to the concerned department dues, no matter if the employer is a Canadian citizen ore not. It is for the employer to not fail to deduct this amount from your income. If he misses the deduction, then he will have to pay 10% of the income tax amount as penalty.

Waiver of Withholding Tax Amount

• You can apply for a waiver of certain tax amount if you can show that you are covered by treaty protection.

• The tax could also be waived if you are able to prove that your expenses are bound to be more than the income that you have received after tax deductions.

• The tax waiver or reduction of taxes application has to be filed by you to the concerned tax related office in your area of

service 30 days before you commence your service and not later than 30 days from the commencement of your job.

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