Services Rendered by a Person Not Resident in
A person who makes a payment to a person that is not resident in
- 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
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
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.