How to complete Form R105, Regulation 105 Waiver Application
The following instructions relate to complex sections of the Regulation 105 Waiver Application form. There are no instructions for details requested in fields 2, 5, 6, 7, and 14.
Section I – Applicant identification
1. Indicate any business number (BN) or similar identifier that the Canada Revenue Agency (CRA) may have issued to the applicant. For example, the applicant may have received a temporary tax number (TTN) or an individual tax number (ITN) if they filed a Canadian income tax return or received a waiver. If the applicant is an individual and does not have a social insurance number or an ITN, the individual must complete form, T1261 Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents.
If the applicant is a corporation and does not have a BN, the corporation must register for one. See How to register for a business number for more information.
You can also apply for an ITN or BN before coming to Canada by completing and sending the forms and supporting documents to the CRA. CRA forms are available at canada.ca/cra-forms.
3. If the applicant is an individual, give the legal name from their birth certificate.
4. If the applicant is an individual who uses and is identified by a professional or stage name other than their legal name, provide that name. If the entity is an unincorporated musical group or a partnership, give the name of the group or partnership.
8. Tick the applicable box to indicate the type of applicant who will be providing services in Canada under the current contract. This will help determine which particular article of a tax treaty may be applied if an exemption from tax is determined. Any services related to the film and television industry should be indicated in Appendix A.
10. The treaty-based guidelines are used when a non-resident is asking for relief under a tax treaty. The relief is based on the absence of a permanent establishment in Canada.
A non-resident person who is a resident of a country that does not have a treaty with Canada, or was denied under the Regulation 105 treaty-based waiver, may apply for an income and expense waiver. The person must prove, through the filing of an income and expense statement and supporting documentation, that their tax liability would be less than the required withholding under Regulation 105. In other words the tax liability must be less than 15% of the gross fee. Any net income remaining after expenses is taxed at the graduate rates (individuals) or corporate rates rather than the 15% rate under Regulation 105. Appendix B has to be completed.
11. Complete the chart detailing the names of all members of an unincorporated group or joint venture or the shareholders of the corporation. A partnership or hybrid entity such as an LLC that has elected to be taxed as a corporation on its worldwide income under the laws of another country must also complete this chart. Provide Canadian social insurance numbers, Canadian individual tax numbers or Canadian business numbers. Provide titles, addresses and countries of residence. Also, please provide the percentages according to which income or profits/losses will be allocated between the members based on any agreement between the members or partners. For a corporation, provide the percentage allocation of voting shares between shareholders. Partnerships or hybrid entities that are taxed on their worldwide income under the laws of a foreign country on a flow-through basis must complete and attach Form NR302 or Form NR303 as applicable.
Section II – Current payer information
Please provide the total fees and currency that is guaranteed to be paid to the applicant for the current contract for their services in Canada.
If there are written agreements to provide other services in Canada later in the current calendar year or in the following calendar year, please provide the related information.
Total fees should include any deposits or advance fees paid to the applicant in anticipation of their services.
Do not include amounts paid for services provided outside Canada.
If it is possible that the applicant will receive an amount in addition to the amount guaranteed by contract, state the amount and the reason why an additional amount may be paid. Such amount could be for an overage provision in a contract, that is, a payment based on achieving higher ticket sales for a concert versus the guaranteed sales level. An overage provision also includes contracts where a bonus provision exists.
If a payer will be reimbursing an applicant for transportation, accommodation, meals, or incidental expenses, or paying a third party directly for these expenses incurred by the applicant, indicate which types of expenses are being paid and their amounts. Also include any amounts reimbursed to the applicant or to be paid by the payer to a third party for the applicant.
12. Equipment, rented outside of Canada, for use in Canada may be subject to Part XIII tax. You may have to provide more details about this rental before receiving an approved waiver.
13. If the applicant will be paying any person for services provided to, or for, the applicant in Canada, please give the name and address of that person, state whether the person is an employee or a subcontractor, and provide the amount to be paid to that person.
Section III – Representative information
15. If you want to authorize the CRA to deal with another person as your representative for this waiver application, please complete the "Authorized Representative" section on this form. The authorization will let the CRA communicate with your representative to get the necessary information and documents to complete this waiver application only. If you want to authorize someone to represent you for all of your tax matters, please send the CRA a completed form AUT-01 Authorize a Representative or notice of a power of attorney.
Print your name and sign and date the form. A person other than the applicant may sign this application only if that person has been authorized by the applicant to communicate with the CRA for their waiver request or Canadian tax affairs. The applicant must provide the CRA with a letter of authority for anyone acting for them for the waiver only.
Section IV – Declaration
16. The applicant has to complete this section if they are applying for a waiver because the provisions of a tax treaty provide an exemption from tax on their income. If the applicant is an unincorporated group or joint venture, each member must provide a similarly signed declaration. Attach a separate sheet if needed.
Partnerships or hybrid entities that are taxed on their worldwide income under the laws of a foreign country on a flow-through basis have to complete and attach Form NR302 or Form NR303 as applicable. The information on Form NR302 or NR303 must be up-to-date and accurate for the period during which services will be performed. If the applicant is applying for a waiver based on their statement of income and expense directly related to their services to be provided in Canada, they do not need to complete this section.
The declaration area should be completed and signed by:
- the non-resident taxpayer, in the case of an individual
- an authorized officer, in the case of a corporation
- an authorized partner, in the case of a partnership
Appendix A
All waiver applicants who are non-resident, self-employed individuals or corporations performing services that relate to the film and television industry and want to apply for a reduced amount of Regulation 105 withholding tax should complete Form R105 and Appendix A.
Appendix B
This worksheet is used to help applicants who want an income and expense waiver. If you need more room, please attach a separate worksheet.
The CRA may require the following:
- A signed and complete copy of the most current service contract documenting the parties to the agreement (names and addresses), the dates and place(s) of services, the amounts to be paid and to whom, the schedule of payments, an outline of the work to be done and by whom. The contract must include the conditions under which the contract can be either voided or extended by one or both parties.
- Full disclosure and signed, complete copies of all subcontracts and rental agreements between the applicant and any other person providing services in Canada, either to the applicant or for the applicant. Any other person includes other self-employed resident and non-resident subcontractors, as well as the applicant's resident and non-resident employees.
- Agreements documenting future services to be provided in Canada
Identification information
- Members of an unincorporated group or a partnership – Provide a copy of the group or partnership agreement (if applicable) outlining how income and profits/losses are distributed or allocated between the members.
- Joint venture or limited liability company (LLC) – Provide copies of joint venture agreements or LLC membership agreement. LLCs electing to be treated as a corporation in the U.S. must provide a copy of their most recently assessed U.S. tax return and/or a letter from the Internal Revenue Service confirming the LLC’s election and start-date to be considered resident in the U.S.
- Corporations – A copy of the articles of incorporation and any documents supporting any name or other changes after incorporation. The CRA may ask for documented proof of shareholders and officers, as well as any voting shares they may hold.
- The identification documents you send with your request for a ITN or BN may not support your claim that you are a resident of the country indicated on this form, or you may already have an ITN or BN and your address on file with CRA is in a different country than your address on this application. If so, attach proof of your country of residence, for example, a copy of a health card, certification of residence, or government-issued identification.
- Provide copies of all Canadian work visas.
Number of consecutive days outside of Canada
- If the applicant will spend five or more consecutive days outside of Canada during the current contract period, documentation may be required to prove absences.
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