Withholding tax

Summary policy

Date
September 3, 2003 (Revised September 13, 2005)

Reference number
CSP-T05

Key words

Withholding tax

Policy statement

The Income Tax Act requires tax to be withheld on certain payments (for example, lump-sump payment from a registered pension plan). However, since a registered charity is exempt from Part I tax, the charity can apply to the Canada Revenue Agency for a waiver of the requirement to withhold tax.

Reference

• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 153(1.1)