Within Canada, income is subject to taxes and is withheld from the payer instead of the recipient.
Your employer is the payer, and you are the recipient. For instance, your employer would be the payer of income. Therefore, any applicable income taxes will be withheld and paid to the Canada Revenue Agency (CRA). Everything else is what you see on your paycheque.
As required by the CRA, a flat rate of 25% in income tax is levied on non-residents earning Canadian sourced income
The money withheld by Canadian financial institutions and other payers is remitted to the CRA
Common payments on which taxes will be withheld include interest payments, dividends, pension benefits, rents, and royalties
Income from Neo Invest will be subject to non-resident withholding tax on interest and dividends. This tax is only applicable to non-residents of Canada earning Canadian sourced income
To learn more about the non-resident withholding tax, visit the Canada Revenue Agency’s website here.
⭐️ Want another perspective? Ask our Neo Community
Post questions, find answers, and connect with community experts.
Reach out for support
Start a chat with our virtual assistant or live Specialist.