Canadian corporation gives the taxable benefit to non-resident shareholder. For this, does the corporation withhold the tax or just issue the T4 slip?

The non-resident shareholder lives in the U.K. If the corporation needs to withhold the tax, which rate will be correct, 25% or 10%?


1 person found this helpful

A non-resident receives a T4NR, not a T4. If you issue a T4 to the non-resident and that non-resident files a non-resident tax return, he will be subject to Part 13 taxes of 25%.

Stephen Nazar, CGA CPA
1467 Royal York Rd 
Toronto, Ontario
M9P 3B3

office   416-560-7132
Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: