HRS insights: Non-resident employees in Canada: Regulation 102 waiver applications have changed

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Payments to non-residents of Canada who provide employment services in Canada are subject to the same withholding, remitting and reporting obligations as those to Canadian-resident employees, as required by Section 102 of the Income Tax Regulations (Reg. 102).

Even if the employee’s country of residence has an income tax treaty with Canada that exempts his or her income from tax in Canada, the employer must still withhold and remit the applicable payroll taxes from the employee, unless the employer has received a Reg. 102 waiver from the Canada Revenue Agency.

Learn more about the implications of recent and pending developments.