A person who makes a payment to a person that is not resident in Canada for services rendered in Québec, otherwise than in the course of regular and continuous employment, must withhold income tax at a rate of 9% on the payment. This source deduction requirement applies in cases where

• fees are paid to a person not resident in <country-region w:st="on" />Canada;
• prizes are awarded to a professional athlete;
• talent fees are paid to a performing artist;
• directors' fees are paid to a director who is not resident in <country-region w:st="on" />Canada who participates in teleconferences in Québec from outside the country.

However, the person making such a payment is not required to withhold income tax on amounts paid to an individual who holds a certificate issued by the Société de développement des entreprises culturelles (SODEC) attesting to the fact that he or she is working during the year as a foreign producer for a film production.

A person that makes payments to a person not resident in Canada must file an RL-1 slip.

A person that does not withhold income tax will be deemed to owe the tax withholding amount plus a 15% penalty. The payer who failed to withhold the tax can recover the amount from a person that is not resident in Canada through legal action or by deducting an equivalent amount from any amount that is to be paid or credited to the person.

In certain cases, an individual or a corporation without an establishment in Québec can request in writing a reduction in the source deduction of income tax by means of a letter or form TP-1016-V, Application for a Reduction in Source Deductions of Income Tax. This request must be transmitted to Revenu Québec 30 days before services begin to be rendered or the first payment.