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Q: Is payment of commission to a non-resident individual sales agent subject to withholding tax?
A: If the commission payment is an other income of this non-resident individual, it will be subject to a 10% withholding tax under Section 109F of the Income Tax Act 1967. However, if can be proven that this is a business income of the non-resident, the commission will not subject to withholding tax.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru