Schedule 29, Payments to Non-Residents
Schedule 29, Payments to Non-Residents
Complete Schedule 29 if the corporation paid or credited any of the following amounts to non-residents:
| 1 | royalties |
| 2 | rents |
| 3 | management fees/commissions |
| 4 | technical assistance fees* |
| 5 | research and development fees |
| 6 | interest |
| 7 | dividends |
| 8 | film acting payments: |
| - for a motion picture film | |
| - for a film or videotape for use in connection with television | |
| 9 | other services |
| * Technical assistance fees are payments for technical or industrial services related to producing goods or applying processes, formulae, and expertise in the production process. |
If the total amount paid or credited to a payee is less than $100, you do not have to complete this schedule with the information for that payee.
A corporation that makes payments or credits amounts to non-residents under Regulations 202(1) and/or 105(1) has to file the applicable information return.
Thin capitalization rules: Disallowed interest treated as a dividend - Interest disallowed as a deduction under the thin capitalization rules (including amounts paid, credited, or payable to a non-resident by the corporation or by a partnership that the corporation is directly or indirectly a member of) will be deemed to be a dividend paid to the non-resident. As a result, the corporation has to remit Part XIII tax using the rate that applies to dividend payments.
The corporation may designate, on or before its filing due date for the tax year, which amounts paid or credited in the tax year as interest to a particular specified non-resident are to be deemed dividends. The designation may be included with the notes to the financial statements.
References
Subsections 18(4), 214(16) and 214(17)
Regulations 105(1) and 202(1)
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