Corporate Taxes & Regulation 105 in Canada
Complete breakdown of corporate income tax, GST/HST collections, and non-resident contractor withholdings.
Legal & Regulatory Definition
"Corporations pay federal and provincial corporate income taxes. Non-residents providing services in Canada are subject to Regulation 105 withholding taxes."
Expat Compliance Analysis
The federal corporate tax rate is 38%, reduced to 15% after basic abatements. For Canadian-controlled private corporations (CCPCs) claiming the small business deduction, the net federal tax rate is just 9.0%. For expats, Regulation 105 mandates that Canadian clients withhold 15% of all gross payments for services rendered in Canada unless a treaty waiver is approved.
Actionable Requirements & Steps
GST/HST Account
You must register for a GST/HST account once your worldwide taxable sales exceed $30,000 CAD in a single calendar quarter or over four consecutive quarters.
Regulation 105 Waiver
Foreign contractors can apply for a Regulation 105 waiver (Form R105) at least 30 days before starting work if they can prove tax treaty exemption.
Immigration Warnings
All self-employment operations must strictly respect your study or work permit limits. Active corporate involvement without a work permit is a violation of section 196 of the Immigration and Refugee Protection Regulations (IRPR).
Legal Disclaimer
This portal is for educational purposes. Expat corporate structures carry tax and visa risks. Consult a licensed Canadian corporate lawyer or Chartered Professional Accountant (CPA) before registering.