If you are a certified qualifying non-resident employer, then you do not have to withhold taxes from the salary or other compensation paid to employees that are qualifying non-resident employees in Canada.
In order to be a qualifying non-resident employee, the employee must meet the following criteria:
- Be a resident of a country that has a tax treaty with Canada at the time of the payment;
- Not be liable for income tax in Canada due to the tax treaty and the type of payment received; and
- Either works less than 45 days in the calendar year in Canada or is present less than 90 days in any 12 month period in Canada.