Employers resident in another country who have employees in Canada (either resident or non-resident in Canada) are responsible for collecting

	income taxes
	Employment Insurance (EI) premiums, except when it appears that, because of the laws of the foreign country, a duplication of premiums or benefits would result the employment in Canada is by a foreign government or an international organization, unless the foreign employer agrees to cover its Canadian employees under Canada's EI legislation.  The employment will then be insurable if Human Resources and Social Development Canada (HRSDC) agrees.
	Canada Pension Plan (CPP) contributions, at the option of the employer.  This coverage is applied for by the employer, by completing Form CPT13 from the Canada Revenue Agency (CRA) website, except for employees employed in the Province of Québec.

However, a tax treaty between Canada and the country of residence of a non-resident employee may provide for relief from Canadian tax deductions.

If the foreign firm is paying for services rendered in Canada by a self-employed contractor

	who is a resident of Canada, no withholding taxes are required
	who is a non-resident of Canada, a withholding tax of 15% is required

See also:

	Residency of an individual - Who pays tax in Canada, and on what income?
	Residency of a corporation on the CRA website
	Tax Treaties on the CRA website
	Calculating payroll tax deductions and automobile taxable benefits
	Are you an employee or a self-employed contractor?

Revised: November 18, 2009