Tax Waivers and Exemptions

Non-Residents and Tax Waiver

  • A Non-Resident filing an application to waive or reduce Canadian withholding tax must have an Individual Tax Number (ITN) or a Social Insurance Number (SIN). An ITN is a nine-digit number issued to non-residents who need an identification number and are not eligible to obtain a Social Insurance Number.
  • If the non-resident receives a tax waiver the ITN must be provided to the Faculty/Department who will forward the number to Staff and Student Payments.
  • The University is required to report the ITN on the T4A-NR.

Applying for a Tax Waiver

Tax Waiver requests must be applied for 30 days prior to the date of the services provided in Canada and/or payment.

Non-residents must download and complete the following two application forms:

For more information, visit the Canada Revenue Agency (CRA) Business - International and non-resident taxes webpage.

Taxes and Exemptions for Status Indians

Canada Revenue Agency (CRA) has established a set of guidelines to be used in determining whether or not an Indian's income is exempt from tax.

Determination of Exemption of an Indian's Employment Income (TD1-IN)

Definitions:

Indian:

A status Indian is a person who, pursuant to the Indian Act is registered as an Indian or is entitled to be registered as an Indian.

On the reserve:

This means on a reserve as defined under the Indian Act, including all settlements deemed to be reserves for purposes of the Indian Settlements Remission Order and any other areas similarly treated under federal legislation.

Indian lives on the reserve:

This means an Indian lives on a reserve in a domestic establishment that is his or her principle place of residence and that is the centre of his or her daily routine.

Employer is resident on a reserve:

The reserve is the place where the central management and control over the employer organization is actually located.

Employers need to examine all relevant factors to determine whether or not an employee’s income was generated on a reserve and whether an employee’s reserve generated income is exempt.

Guidelines where an Indian’s employment income will usually be exempt:

  • When at least 90% of the duties of an employment are performed on reserve
  • When the employer is resident on a reserve and Indian lives on a reserve
  • When more than 50% of the duties of an employment are performed on a reserve and the employer is resident on a reserve, or the Indian lives on a reserve
  • When the employer is resident on a reserve and the employer is:
    • An Indian band which has a reserve
    • A tribal council representing Indian band/s which have reserves
    • An Indian organization controlled by an Indian band

When less than 90% of the duties of an employment are performed on a reserve and the income is not exempted by another guideline, the exemption is to be prorated.

 

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Email: Payroll.Operations@ualberta.ca