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CRA Regulation 105 Withholding Advisor
Check default services withholding tax and determine treaty waiver eligibility (Form R105).
CRA Regulation 105 Rule: Any Canadian client paying a non-resident contractor, freelancer, or corporation for services rendered *physically in Canada* must withhold **15%** of the gross invoice amount (plus an extra **9%** in Quebec). This withholding must be sent to the CRA. This is not a final tax; it is a prepayment credit applied toward your final Canadian tax filing.
Contract Parameters
Withholding & Waiver Assessment
Total Default Withholding (15%)
$4,500 CAD
Federal (15%): $4,500 | Provincial: $0
Net Invoice Cashflow (No Waiver)
| Gross Invoice Amount | $30,000 CAD |
| Regulation 105 Withholding | -$4,500 CAD |
| Net Client Payout | $25,500 CAD |
Treaty Waiver Eligibility
Status: Eligible for Treaty Waiver (Form R105)
Because you do not maintain a permanent establishment in Canada, you can apply for a waiver under the Canada-India/US/UK tax treaty. File Form R105 at least 30 days before services begin to eliminate the 15% withholding.
Filing Deadline: Waiver applications (Form R105) must be submitted to the CRA **30 days prior** to the start of services or 30 days before the first payment, whichever is earlier.