Guidelines

Purpose of the Regulation 105 BTS Waiver Guidelines

These guidelines are used for BTS personnel in the film and television industry when a waiver from withholding would not be granted under the Guidelines for Treaty-Based Waivers Involving Regulation 105 Withholding. The Regulation 105 BTS Waiver Guidelines are not intended to determine whether a non-resident person has a permanent establishment in Canada.

If a waiver is denied using these guidelines, the CRA will not necessarily assume that the non-resident has a permanent establishment in Canada. However, the following guidelines may assist CRA officers in determining whether to waive the Regulation 105 withholding tax when the waiver applicant meets specific criteria.

To whom do the Regulation 105 BTS Waiver Guidelines apply?

These guidelines apply to self-employed BTS personnel, or BTS personnel providing services in Canada through loan-out corporations, partnerships or joint ventures, on projects, such as feature films, television movies or television series.

To whom do the Regulation 105 BTS Waiver Guidelines NOT apply?

These guidelines do not apply to persons meeting the criteria for a waiver under the general Guidelines for Treaty-Based Waivers Involving Regulation 105 Withholding. Those guidelines should be applied first.

The Regulation 105 BTS Waiver Guidelines do not apply to residents of countries that have not signed a tax treaty with Canada. They also do not apply to residents of treaty countries where the treaty specifies a deemed permanent establishment. See exception 2 of the Guidelines for Treaty-Based Waivers Involving Regulation 105 Withholding and the applicable treaty.