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Hi,
I have a canadian corporation, which is now a "Other corporation" because of my emigration of Canada. When this corporation now, declares dividends, I withhold 15% (because of treaty) and remit to CRA next month.
I read that I will to issue NR4 slip as well as NR4 summary to CRA. Can you explain "Exemption code" part of NR slip in details? "Payments to a non-resident that carries on a business in Canada through a permanent establishment in Canada" is under exemption. Does it mean there is no need to withhold any taxes?
Hi Sam,
Business profits derived by a foreign corporation through a permanent establishment located outside Canada are not taxable in Canada. However, dividends paid by a Canadian corporation to a non-resident of Canada are not exempt from withholding taxes.