Taxes Withholding tax applies on payments to non-residents for services rendered in Canada.
An August 1998 Revenue Canada discussion paper proposes changes to guidelines for treaty-based waivers of that tax, effective January 1, 1999. There is an additional 9 percent withholding under Quebec tax law for services rendered in Quebec. The tax withheld is applied against any potential, ultimate tax liability. Revenue may waive withholding in cases of undue hardship. In the past, waivers were granted if there was no anticipated tax liability because of treaty protection or deductible expenses, but the basis on which waivers were granted was not always clear or consistent across the country.