Tax Insights: Non-resident employer certification program

Issue 2016-47

Earlier this year, the Canada Revenue Agency (CRA) introduced its Non-Resident Employer Certification (Certification) program, which exempts from Canadian payroll withholding requirements certain foreign employers with certain non-resident employees working temporarily in Canada.  

With the first year of the program coming to a close, the CRA has started issuing review letters to certain “qualifying non-resident employers” to assess their ability to abide by the Certification program’s compliance requirements.

As a result, qualifying non-resident employers should ensure they have: 

  • a clear understanding of the Certification program’s compliance requirements, and
  • the policies and processes in place to comply with the requirements and maintain their certification status.

Read this Tax Insights for more information.