Canada Tax Agency Updates Guidance on Nonresident Tax Withholding, Reporting

The Canadian Revenue Agency Nov. 14 issued updated guidance on nonresident tax withholding and reporting. Updated topics covered include: 1) the reduction, to five from 50, in the threshold number of information returns per year for mandatory electronic filing, for returns filed after Dec. 31; 2) mandatory electronic payments for amounts above C$10,000 (US$7,314), applicable as of Jan. 1, 2024; 3) imposition of withholding tax on benefits received by qualifying nonresidents under the First Home Savings Account (FHSA), in the year paid or received; and 4) penalties for noncompliance. [Canada, Canada Revenue Agency, 11/14/23]

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