Canada Withholding tax rates
Canada Withholding tax rates: no single figure applies. The reason is set out below, cited to the governing instrument. Last checked against the official source on 10 Aug 2026.
The Part XIII tax Canada levies on amounts paid or credited to non-residents - dividends, interest, rents and royalties, and related heads - at the domestic statutory rate before any tax-treaty relief. Imposed by Part XIII of the Income Tax Act (s.212 and following); administered by the CRA.
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| Current value | structured — see the API |
|---|---|
| In force from | 2008-01-01 |
| Official source | Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)), s.212(1): 'Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of' the listed heads (interest, dividends via s.212(2), rents and royalties, etc.) |
| Last verified | 2026-08-10 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
THERE IS NO SINGLE WITHHOLDING TAX RATE IN PRACTICE, WHICH IS WHY value IS NULL. Canada's Part XIII tax uses one headline statutory rate - 25% - across dividends, interest and royalties, but the interest head is hollowed out by statute: interest paid to an arm's-length lender that is not 'participating debt interest' bears NO Part XIII tax at all. A caller must name the payment type and its facts (arm's length or not, participating or not) and read withholding_rates rather than expecting one number to apply. ALL RATES ARE DOMESTIC STATUTORY RATES, BEFORE TREATY RELIEF. A Canadian tax treaty can reduce the 25%, commonly to 15%/5% for dividends and 10% or 0% for interest and royalties (the Canada-US treaty exempts most arm's-length interest and certain royalties entirely). We do NOT serve treaty rates: they are bilateral and applying one is a legal determination rather than a lookup. Part XIII is a FINAL tax on the gross amount, collected by the Canadian payer withholding at source (s.215). The 25% rate has stood for decades; the series effective_from of 2008-01-01 is the date the arm's-length interest exemption in its current form took effect (Budget 2007 amendment to s.212(1)(b)), the most recent structural change to these heads.
Get it programmatically
curl https://usaref.dev/v1/ca/withholding-tax
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://usaref.dev/v1/ca/withholding-tax/history?from=2020-01-01
# Provenance: curl https://usaref.dev/provenance/ca/withholding-taxOther Canada series: Policy Interest Rate · Statutory default interest (Interest Act) · Goods and Services Tax (GST) · VAT registration threshold · Federal Minimum Wage · General (Statutory) Holidays · Consumer Price Index (Inflation Rate) · Federal Corporate Income Tax Rate · Federal Personal Income Tax Rates · Statutory social-insurance contributions · Bank of Canada exchange rates
The same figure elsewhere: Costa Rica · Dominican Republic · El Salvador · Guatemala · Honduras · all 10