Form 1287 - Application by a non-resident actor for a reduction of withholding tax on income earned in Canada
If you are a non-resident actor in a film or video production and would like a reduction in the amount of non-resident tax required to be withheld on your income earned in Canada, please complete Form T1287 as follows:
Section 1 - Information
This section contains important information you will need before you apply for a reduction in the amount of tax withheld from your income.
Attach a copy of your contract to support the information you provide on Form T1287. For the purposes of this application, a "contract" means any enforceable agreement that governs the terms of the acting engagement in Canada.
Section 2 - Identification area
- Social insurance number or Individual tax number
If you have a valid social insurance number (SIN) or a Canadian individual tax number (ITN), enter it here. Both numbers are comprised of nine digits (e.g., 123-456-789). If you do not have a Canadian SIN and have not been assigned a Canadian ITN before, a Canadian ITN will be issued to you when your application is processed.
- Tax year
Enter the tax year in a four-digit format.
- Last name; First name and initial
Enter your legal name (last name first).
- Date of birth
Enter your date of birth (year/month/day).
- Professional name
If your professional name is different from your legal name, enter it here.
- Canadian province or territory of work
Enter the names of all provinces and territories in which you will provide the acting services.
Enter this information as indicated.
- Mailing address
Enter your mailing address if it is different from the address you indicated above.
- Date of entry into Canada; Date of departure from Canada
Enter the actual dates of entry into and departure from Canada. If you enter and leave Canada more than once, use an additional sheet of paper to record all dates.
- Is this your first application for this tax year?
Check yes or no to indicate your answer to this question.
Section 3 - Payer identification
The payer is the person or company who issues payments to the non-resident actor. After processing your application form, the Canada Revenue Agency (CRA) will advise your payer in writing of the applicable rate at which to withhold tax from each payment.
Enter the information requested on the application form.
Section 4 - Allocation of income
As a non-resident actor, you are subject to Canadian tax on the income you earn in Canada. When you earn income for acting services you provide both inside and outside Canada, you have to allocate the income accordingly. You are not subject to tax in Canada for the part of the income that applies to the services you provided outside Canada. You can find out more about this at Allocating income to Canada for acting services.
Enter the information requested on the application form.
Section 5 - Payment for services - current contract
Enter the frequency of the payments (example, weekly, bi-weekly, monthly, or other), the amount of the payments you will receive, and the total amount under the contract. Enter the dates of the first and final payments. Please give this information in Canadian currency.
Section 6 - Other payments
Report, in Canadian currency, estimated amounts for the following types of income:
- income you earned from a previous contract to provide acting services in Canada during the current tax year;
- income you will earn from a future contract to provide acting services in Canada in the current tax year;
- income from residuals and contingent compensation you received or will receive for providing acting services in Canada in any tax year; and
- income you earned from non-acting activities in Canada during the current tax year.
If you elect to file a return and pay tax on your net Canadian-source acting income at graduated rates, you must report all acting income you received during the year on that return, including the types of income listed in this section. We will consider this information when deciding whether you would benefit from filing a return.
Section 7 - Income statement information
- All revenue and expense amounts must be reported in Canadian currency.
The latest conversion rates are available at the Bank of Canada's Web site at: www.bankofcanada.ca.
Please make sure you attach a copy of your contract to your application form.
- Gross Canadian source acting revenue
Gross Canadian source acting revenue is your total compensation for acting services provided in Canada. If you provide the acting services both inside and outside of Canada, you have to allocate part of the compensation to Canada, based on the number of days you are present in Canada. Generally, the amount allocated to Canada would be the gross compensation under the contract multiplied by the percentage you calculated at section 4. In this way, you exclude revenue for services you provide outside Canada from your gross Canadian source revenue. To find out more about this, see Allocating income to Canada for acting services.
Gross Canadian source acting revenue includes:
- fees for services provided in Canada;
- per diem payments for days in Canada;
- amounts paid to third parties on your behalf;
- amounts to be reimbursed to you;
- similar benefits.
- Expenses related to acting services provided in Canada
As a rule, you can deduct any reasonable expense that you incur to earn professional income. However, since you cannot deduct personal expenses, enter only the business portion of expenses on your application form. Allocate expenses the same way you allocate income. Expenses that are specifically related to the services provided in Canada may be wholly claimed against the Canadian income. General expenses may be allocated on a reasonable basis between Canadian and non-Canadian income.
The most common expenses are listed below:
- agent's fee for services;
- business manager's fee for services;
- personal manager's fee for services;
- professional fees;
- other expenses not listed above (specify the type of expense).
Attach supporting documents.
- Net income from acting services in Canada
Net income is the difference between the gross Canadian source acting revenue and allowable expenses. We will use the amount for the current contract, plus any other income noted in section 6, to determine whether you would benefit from electing to file a return under section 216.1 of the Income Tax Act. When the amount of tax you would have to pay if you reported this income on a tax return is less than 23% of your gross acting income, we will approve a reduction in the withholding tax. We will then advise your payer to withhold tax at a reduced rate from any payments made to you.
Section 8 - Certification by the non-resident actor
Complete and sign the certification area. By signing, you authorize the CRA to notify your payer, in writing, to reduce the 23% withholding tax on your acting income.
If you wish to authorize your representative to discuss your confidential tax matters with the CRA, you must complete and attach Form T1013, Authorizing or Cancelling a Representative .
If a representative signs the certification area on your behalf, you have to provide a valid power of attorney. The power of attorney must state that the representative can sign on your behalf for income tax purposes.
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