The Canada-US tax treaty in practice: W-8BEN, W-9, NR301, NR4, Form 1042-S, Form 8833, ITINs, Form 1040-NR, residency certificates, and recovering tax withheld at source.
17 guides, each written by a CPA licensed in the US and Canada.
The CRA and the IRS exchange information under Article XXVII of the Canada-US tax treaty, and an audit in one country can trigger an audit.
Cross-BorderWhen both countries tax the same income and the treaty does not fix it. But some disputes cannot be resolved that way. Covers key rules, filing.
Cross-BorderMost interest paid between Canada and the US is exempt from withholding under Article XI of the treaty. Here's when tax still applies and how each country taxes it.
Cross-BorderCanadians file Form 1040-NR for US work, a US business, rental income under the 871(d) election, a US property sale, or a refund of over-withholding. Due June 15 without US wages.
Cross-BorderIf a US payor withheld 30% on your income when the treaty rate was lower (or zero), you file a US return to get the difference back.
Cross-BorderForm 8233 lets a non-resident alien claim a treaty-based withholding exemption on compensation or independent personal services income.
Cross-BorderCanadians who need to file a US tax return apply for an ITIN using Form W-7. How the process works, what to mail, and how to protect your passport.
Cross-BorderThe NR4 reports Canadian-source income and Part XIII withholding. The NR4 slip is Canada's information return for income paid to non-residents.
Cross-BorderThe US-Canada tax treaty's Limitation on Benefits article can deny treaty benefits to entities that lack a genuine connection to either country.
Cross-BorderForm NR301 tells a Canadian payer you're a treaty resident, cutting the 25% non-resident withholding to 15% on dividends and periodic pensions. It goes to the payer, not the CRA.
Cross-BorderCanadian residents who receive US dividends face 15% treaty-reduced withholding. Some pay the full 30% and can reclaim the excess.
Cross-BorderA tax residency certificate proves where you live for treaty purposes. The US uses Form 8802 to request one; Canada uses a letter from the CRA.
Cross-BorderYes, Canada and the US have a tax treaty, in force since 1984. It caps dividends at 15% (5% for 10% corporate owners), most interest at 0% and periodic pensions at 15%.
Cross-BorderA Canadian resident who holds US stocks or receives US-source income gives Form W-8BEN to the payer to reduce withholding from 30% to the 15% treaty rate.
Cross-BorderA Canadian who isn't a US citizen or green card holder shouldn't sign a W-9. Give the US payer a W-8BEN (or W-8BEN-E for a company), which can cut withholding from 30% to 0%.
Cross-BorderYou need it when you take the position on a US return that the treaty overrules or modifies US tax law, and no waiver covers you.
Cross-BorderCanadians file US tax returns for one of four reasons: they hold US citizenship (including accidental Americans who have never lived in the US).