By Canadian law, payers must withhold 15% of any fees paid to you for your performance(s) in Canada and remit this money to the Canadian Revenue Agency. The only way to retain all or part of this 15% tax is by obtaining a tax waiver.
Some of the main benefits in applying for a Canadian tax waiver:
- Completely eliminate or reduce the 15% withholding tax to be taken off your Canadian performance fee(s).
- Assist with touring cash-flow while traveling in Canada.
- Protect you from an assessment by the Canadian Revenue Agency that may obligate you to pay additional withholding taxes on any fees paid to staff or employees working for you on your Canadian tour.
Please visit our FAQ section for more detailed information about the benefits of a tax waiver and filing procedure. Here though are some basic examples of when it is helpful to apply for a Canadian tax waiver.
Example 1:
You are a small musical group travelling as a trio and you have 3 dates booked in Vancouver, Edmonton and Calgary in 2013 with performance fees totalling $ 12,000 USD. You have no other dates booked in Canada so far for 2013. It will be beneficial to apply for a tax waiver as this will save you $ 1,800.00 USD.
Example 2:
You are a large musical group travelling with a touring party of 12. You have a tour of Canada upcoming with 5 dates booked in Toronto, London, Kingston, Ottawa and Montreal. Your total performance fees for these dates is $ 75,000 USD however your touring expenses (bus, hotel, staff, per diems, management and agency fees, etc..) associated with these dates are in excess of $ 60,000.00 USD. It will be beneficial to apply for a tax waiver as this will likely save you up to $ 8,000.00 USD.
Example 3:
You are a comedian with one date booked in Canada in 2013 at a convention in Halifax. Your fee for this performance is $ 10,000.00 USD. It will be beneficial to apply for a tax waiver as this will save you $ 1,500.00 USD