Should the Tax Waiver Process for Non-Residents Working in Canada Be Simplified?
Official title: Income Tax Regulation 105 Waiver Process
When non-residents provide services in Canada, their clients must withhold 15% of the payment for taxes. The CRA asked how to make the waiver process less burdensome. Right now, getting an exemption is complex and slow, causing headaches for both foreign workers and Canadian businesses that hire them.
Why This Matters
Run a business that hires foreign consultants or contractors? This affects your cash flow and paperwork. Non-residents working in Canada often have more withheld than they actually owe, then wait months for refunds.
What Could Change
The CRA may streamline how non-residents apply for tax waivers. Budget 2024 already proposed giving the CRA more flexibility to grant relief. A summary of feedback will be published by winter 2026.
Key Issues
- How can the waiver application process be simplified?
- What causes delays in processing waiver requests?
- Are existing improvements like the Simplified Waiver Application working?
How to Participate
- The consultation is now closed. Feedback was collected via an online questionnaire from June 30 to August 29, 2025.
What Happened
The CRA thanked participants for their feedback. A summary of the consultation results will be published by winter 2026.