Tax Question

[StelfoxAudio]

I live in Canada, do I have to charge my Canadian clients the regular 7% GST and other clients different tax rates or does the 7% apply to all clients, or do I have to charge taxes at all?

[73*]

You don't live in Canada. GST is 5%, hasn't been 7% for about 3 years.

[loji]

I don't know canadian laws, but some places have different taxes for products vs. services. Where you fall under that is up to what you provide.

Do some web searching in the province/county/country you work in. Are you working a sole proprietor or have a dba as another buisness/corporate entity.. all the relevent rules for each category will be listed somewhere.

Or buy a talk with a tax guy. Ask around for recomendations on who does music, freelance, entertainment taxes. You should be able to find someone for a couple hundred bucks to answer all your questions.

[silverking]

The "S" in GST stands for "services".....as in services rendered, knowing that, do you think you have to charge GST?

[loji]

Canada service rendered tax for US residents

Canada Income Tax Regulation Section 105 2009 Proposal

Regulation 105 waiver application

Withholding Tax bite - (private accountant paper ie: advertisment)

google cache of cftpa

In case the above google cache link doesn't work:

Taxation

Production in Canada is subject to a variety of federal and provincial taxes. The Canada Revenue Agency (CRA) has established Film Services Units (FSUs) in the tax services offices in Vancouver, Regina, Toronto, Montreal and Halifax. These specialized units provide service to film and television productions, including film studios and producers, as well as non-resident actors and behind-the-scenes personnel who provide services in Canada.

Customs

Importing or Exporting?
If you are temporarily exporting goods, you should be prepared, when you return them to Canada, to prove that they were originally from Canada and are not new imports. You can do this by providing the Canada Border Services Agency (CBSA) with a bill of lading that documents the original export. A foreign landing certificate is also acceptable. If neither of these forms are available, the CBSA will certify a Form E15, Certificate of Destruction/Exportation, before you export the goods.

If you have temporarily imported goods that you did not document on Form E29B, Temporary Admission Permit, you will need proof of export to substantiate a claim for full relief from payment of duties and taxes. A bill of lading will serve as proof but, if none is available, you can use Form E15.

If you are claiming full relief from payment of duties and taxes because the goods were destroyed, you should use Form E15 to document the destruction.



Goods & Services Tax/Harmonized Sales Tax

The Goods and Services Tax/Harmonized Sales Tax is a multi-stage sales tax on consumption. Under the GST/HST, the provision of goods and services is either taxed at five per cent or 0 per cent (called zero-rated), or it is exempt. Participating HST provinces combine the GST and their provincial sales taxes on goods and services. Most goods and services sold or provided in Canada are subject to GST/HST.

Businesses that are required to, or that voluntarily choose to register for the GST/HST, are called registrants. GST/HST registrants can claim a credit to recover the GST/HST they paid on purchases used to provide taxable goods and services. This credit is called an input tax credit.

As a GST/HST registrant, you must prepare and submit a GST/HST return at regular intervals, showing the amount of tax you have collected and paid. You can deduct input tax credits from the GST/HST you collected on sales.

Both Canadian and non-resident production companies that carry on business in Canada, make supplies in the course of their commercial activity in Canada, and have worldwide annual revenues from taxable sales of goods and services of more than $30,000 (Canadian), must register for the GST/HST. They must also charge tax on their taxable sales of goods and services in Canada.

A non-resident production company that is not required to register, may be able to obtain a rebate for the tax paid on goods and services acquired by the non-resident, for use or consumption exclusively in the production of certain artistic works for export.

To determine whether your company should be, or may apply to be registered for the GST/HST, contact any CRA tax services office. Non-resident production companies can obtain additional information and publications from Canadian consulates or embassies.

Once you have determined that you should register for the GST/HST, you are responsible for:
Collecting the GST/HST when you provide taxable goods and services in Canada
Calculating the GST/HST you have paid and collected
Maintaining books and records
Filing your GST/HST return and remitting any net tax payable (your CRA tax services office can give you details about filing frequency)

For more information, or to obtain a copy of Doing Business in Canada - A Guide for Non-Residents, contact your nearest tax services office. You can find the number in the Government of Canada section of the telephone book.



Income Tax

Residents of Canada
Employers have to deduct and remit income tax to the CRA on payments made to residents of Canada report the amounts on a T4 or T4A Summary and related T4 or T4A slip. For more information on the T4 and T4A, refer to the CRA publications RC4120, Employers’ Guide-Filing the T4 Slip and Summary, and RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary.

Non-Resident Behind-the-Scenes Personnel
When non-resident individuals, partnerships or corporations provide services in Canada (other than employment situations), they have to pay a 15% withholding tax on fees, commissions, or other amounts they receive. The payers of these amounts have to deduct the withholding tax and send it to the CRA, regardless of whether they are residents or non-residents. The payer also has to report the tax deducted on a T4A-NR Summary and related T4A-NR slip. For more information on the T4A-NR, refer to the CRA publication T4445, T4A-NR – Payments to Non-Residents for Services Provided in Canada.

If a tax treaty exists between Canada and the non-resident's country of residence, it may provide some relief from Canadian tax. For example, under the tax treaty between Canada and the United States, US residents can usually apply the income tax they paid in Canada against their taxable income reported in the United States.

Non-residents can apply to the CRA to have the tax withheld at source reduced by showing that the required rate of withholding would exceed their Canadian tax liability, based on treaty provisions or estimated allowable expenses.

Non-residents carrying on business or working in Canada have to file a Canadian tax return to determine their taxes owing or to get a refund. For individuals, the filing deadline is April 30 of the following calendar year, or June 15 of the following calendar year if the individual is self-employed. Corporations have to file a return within six months after the end of their fiscal period. In the case of partnerships, each partner has to file an appropriate return within the required time.

Non-Resident Actors
A non-resident withholding tax of 23% applies to amounts paid, credited, or provided as a benefit to a non-resident actor or to a corporation related to a non-resident actor for film and video acting services rendered in Canada. This tax must be withheld by the payer, either Canadian or non-resident, and remitted to the CRA. The payer is also required to report, on a NR4 return, the appropriate income and any taxes withheld and remitted to the CRA. For more information on the NR4 Return, get a copy of the CRA publication T4061, NR4 - Non-Resident Withholding, Remitting and Reporting.

The 23% withholding tax is a final tax liability on acting income. The actor does not have to file a tax return in Canada. However, electing to file a Canadian return may reduce the actor’s tax liability in certain situations. On the elective return, tax is calculated on the netCanadian-source acting income at graduated individual or corporate tax rates. Depending on the amount of the income and expenses, the tax calculated on the net income may be less than the 23% withholding tax on the gross income.

Film Services Units
The Film Services Units administer or provide access to all CRA programs dealing with film and TV production in Canada. Their responsibilities include the taxation of non-resident actors and behind-the-scenes personnel, and the federal tax credit programs for Canadian and non-resident film productions. They also serve as a gateway to other CRA services specific to the film industry, such as Customs and the GST/HST.
For more information on the taxation of non-residents performing services in Canada in the film industry or on the tax credit programs, visit their website at http://www.cra-arc.gc.ca/tx/nnrsdnts/flm/menu-eng.html under the heading “Film Advisory Services”.

Vancouver Tax Services Office
For services performed in British Columbia
Film Services Unit
447-14, 1166 W. Pender St.
Vancouver, BC V6E 3H8
Tel.: (604) 666-7911
Fax: (604) 666-7436

Regina Tax Services Office
For services performed in Alberta, Saskatchewan, and Manitoba (tax credit only)
Film Services Unit
P.O. Box 557
Regina, SK S4P 3A3
Tel.: (306) 780-8245
Fax: (306) 780-3312

Toronto Centre Tax Services Office
For services performed in Ontario, Nunavut, the Northwest Territories, and the Yukon Territory
Film Services Unit
1 Front Street W.
Toronto, ON M5J 2X6
Tel.: (416) 973-3407 or (416) 954-0542
Tel.: (416) 954-0534 (waivers/actors)
Fax: (416) 952-2013
Fax: (416) 954-8528 (waivers/actors)

Montréal Tax Services Office
For services performed in Quebec
Film Services Unit
305 René Lévesque Blvd. W., 8th Floor
Montréal, QC H2Z 1A6
Tel.: (514) 496-2231
Tel.: (514) 283-0512 (waivers/actors)
Fax: (514) 283-1174
Fax: (514) 496-4574 (waivers/actors)

Halifax Tax Services Office
For services performed in Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador (tax credit only)
Film Services Unit
Ralston Bldg., 1557 Hollis St.
Halifax, NS B3J 1V4
Tel.: (902) 426-5294
Fax: (902) 426-1431



There's lots of information. Do some searching, that all only took 15 min to find, or call someone who knows taxes and how they'll apply to you.

Goodluck