Interest paid to an arm's length non-resident
Effective January 1, 2008, no Part XIII tax is required
to be withheld from interest payments made by a Canadian resident to a
non-resident recipient with whom the payer deals at arm's length, other
than payments ("participating debt interest") that are in effect
a distribution of profits. Interest on certain debt obligations
("fully exempt interest") is exempt from withholding tax even if
it is paid to a non-arm's length person, or might be considered
"participating debt interest".
CRA Non-Resident Tax Calculator
The online non-resident
tax calculator provided by Canada Revenue Agency calculates the current
Part XIII (non-resident) taxes payable on certain amounts paid or credited
to non-residents of Canada, based on information provided by the user.
Revised: July 04, 2014