Employers resident in another country and without an establishment in
Canada who have employees in
Canada (either resident or non-resident in Canada) are responsible for collecting
income taxes, except for certified non-resident employers when they pay
amounts to non-resident employees working for them in Canada.
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. If the employer chooses to contribute for their
employees, they can apply by completing Form
CPT13 from the Canada Revenue Agency (CRA) website, except for employees
employed in the Province of Quebec. See the form for more
information. If the employer does not choose to contribute for their
employees, the employment is excepted from pensionable employment.
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