The CRA Simplifies International Taxation in Response to Sector Recommendations
After three years of advocacy, the Canada Revenue Agency has put in place a simplified income tax process for non-resident artists. This simplified process addresses a few of the recommendations issued by the Performing Arts Tax Working Group. Among other things, it no longer requires the waiver applicant to obtain an Individual Tax Number for each performing artist. This is a partial, yet quite significant, improvement.
However, the scope of the simplified process is limited. Only self-employed performing artists are eligible. In addition, the full exemption to the withholding tax obligation will only be available to artists from the United States.
Greater simplification of international taxation will require changes to Canada’s tax treaties. The Performing Arts Tax Working Group intends to remain active and to move its recommendations forward with Global Affairs Canada, Finance Canada, and Canadian Heritage.
Stakeholder Message Developed by CRA
With the summer festival season hitting full stride, there are always dozens of details to organize. Whether your roster is already full for this year’s festival or you’re still looking to add other artists, you will want to know about the new tax process for non-resident performers.
As of June 2018, non-resident artists and athletes earning no more than CAN$15,000 in Canada during a calendar year can fill out a new tax waiver application form which is quicker and easier to complete, and doesn’t require advance approval from the Canada Revenue Agency (CRA).
Before performing or being paid, artists and athletes who qualify for the simplified process should complete Form R105-S, Regulation 105 Simplified Waiver Application for Non-Resident Artists and Athletes earning no more than CAN$15,000. They give the form and any supporting receipts to their Canadian payer and their part of the process is complete.
We trust that the steps taken by the CRA to improve its services will support you in your work to draw foreign talent to our communities and contribute to Canada’s arts and culture.
To find out more about the new process, visit Simplified income tax process for non-resident artists and athletes.