CRA withdraws IC76-12R9 and reverts to the previous version

Information Circular IC76-12R8 dated January 12, 2022 was replaced by Information Circular IC 76-12R9 dated June 18, 2025. IC 76-12R8 contained statements indicating that if the laws of another country taxed income based on the amount remitted to or received in that country, rather than the full amount of the income, then any exemption or reduction of tax in Canada under a tax convention with such country would generally reduce or relieve Part XIII withholding only on income that was remitted to or received in that other country.

IC 76-12R9 retained these statements but went on to add that, in order for the remittance of income to such a jurisdiction to be eligible for the treaty-reduced rate of withholding, the non-resident taxpayer was required to provide proof that the income was remitted to their country of residence and that the income was taxed or is taxable in their country of residence. Acceptable proof would include written statements to that effect from the taxpayer. (Note that it might be difficult to provide a blanket certification in advance of the receipt of the income.) The remittance-based jurisdictions listed in IC76-12R9 were Barbados, Guyana, Ireland, Malta, Singapore (in respect of corporations and trusts resident in Singapore), and the United Kingdom. (Ironically, effective April 6, 2025, the U.K. abolished the remittance basis for newly arising foreign income and gains and moved to a residence-based regime.)

However, after concerns were expressed that these additions had the effect of requiring Part XIII withholding to be made at the 25% statutory withholding rate on payments to the listed jurisdictions since the NR301 forms on file were no longer sufficient for those jurisdictions, CRA removed IC 76-12R9 from its website (by mid-October 2025) and IC76-12R8 was added back as the most recent version of the Circular still on the CRA website.

Neal Armstrong. Summary of Information Circular IC76-12R8 and IC76-12R9 under s. 212(1).