Tax Memo: Withholding Tax on Interest — Welcome Changes for 2008 and Beyond

Withholding tax on interest paid or credited on debts owing to non-residents may be reduced, and in many cases eliminated, as a result of:

• Bill C-28, Budget and Economic Statement Interpretation Act, 2007; and
• the Fifth Protocol to amend the Canada-United States Tax Convention (the Treaty).

Some experts believe that the changes will lower borrowing costs for Canadian companies by increasing the supply of lenders and reducing administrative burdens.

Tax Memo: Withholding Tax on Interest — Welcome Changes for 2008 and Beyond (54 KB) Download the full PDF Tax Memo.