I have an opportunity to work on a film in BC for a few months and make between $10,000 to $12,000. I would like to know how this amount will be taxed in Canada and what my filing obligations will be.
You have some options with respect to how Canada taxes your earnings as a non-resident actor. Generally speaking when the film company pays you they’ll need to withhold 23% of your gross earnings and remit this amount to CRA (Canada Revenue Agency).
Once the CRA payments have been made the non-resident actor will have 2 options:
- Have the 23% withheld be the final amount of taxes due and not file a Canadian non-resident tax return.
- File a Canadian non-resident tax return and have your earnings taxed in Canada at marginal Canadian tax rates. This option will allow you to claim expenses and you will only be taxable on net income earned. And in some cases certain tax credits will be available to non-residents filing in Canada.
It’s possible to obtain a waiver for the 23% tax withholdings from CRA, however it’s not common that these waivers are granted.
Also note that if you’re working in Canada for more than 182 days you’ll most likely be deemed a tax resident of Canada and be liable to file Canadian returns for that year and required to report your worldwide income to CRA.
If you need help in filing your non-resident tax return don’t hesitate to contact me and we can discuss your requirements further.