This CRA relief related to travel restrictions is extended until September 30, 2020.
The CRA says it does not anticipate further extensions of the guidance, and taxpayers whose situation persists past September 30 are advised to contact the CRA.
This relief lengthens the CRA's application of its recent guidance, which generally provides that prolonged stays in Canada that solely result from travel restrictions due to COVID-19 will not necessarily affect the tax residency or permanent establishment of a non-resident entity. This guidance also clarifies that these travel restrictions may not affect the tax residency of a non-resident individual, or the ability of a cross-border employee to qualify for treaty benefits on employment income. In addition, the CRA's guidance provides administrative relief to reflect its processing delays regarding certain withholding tax waiver requests and Section 116 Certificates.
Previously, the CRA indicated that its guidance would only apply from March 16, 2020 to August 31, 2020, but that it was prepared to extend its relief measures where needed.
Download this edition of the TaxNewsFlash to learn more.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.