Update on Withholding Taxes on Cross-Border Interest Payments
As previously reported in Fast Fact 07-02, the 2007 federal budget announced that the government would eliminate withholding tax on certain interest payments made to arm’s length non-residents, regardless of their country of residence once the withholding tax elimination is implemented in the Canada-U.S. Tax Treaty. Rather than waiting for treaty ratification, this change has now been implemented with Bill C-28 which
received Royal Assent on December 14, 2007 and will apply after 2007.
Next Section: Conclusion
