Participating international artist receive a formal Lett of Invitation from Fringe Theatre to perform at the Festival and therefore, do not require a Canadian Visa. This letter will be issued in the name and address of the Primary Contact unless otherwise specified. Letters will be sent by the end of May.
Every arts organization who makes a payment to a non-resident artist or company for services rendered in Canada must withhold and remit an amount in accordance with the requirements under the Canadian Income Tax Act. The rate of withholding is 15% of the gross amount paid.
The only alternative to the withholding and remitting requirements is for the non-resident to obtain a waiver, or a reduction in the withholding tax. Where a non-resident can adequately demonstrate that the withholding tax normally required is in excess of their ultimate Canadian tax liability, the Canadian Revenue Agency (CRA) may reduce or waive the withholding tax accordingly.
The responsibility is on the non-resident to demonstrate to the CRA that a waiver or a reduction of the amount required to be withheld is justified. This may be based on the application of the treaty of their country of residence or through an estimated income and expense statement. A request for a waiver should normally be filed 30 days before the services are to begin in Canada, or 30 days before the first payment is due for these services.
Even if the payer withholds and remits tax from the non-resident’s income or even if a waiver is granted, the non-resident will likely have to file a Canadian income tax return to get a refund of any excess amounts that were withheld or else to certify that they are exempt from paying tax in Canada
You can fill out a Withholding Tax Waiver and submit to the CRA to see if you are eligible for an exemption.
It is entirely up to the artist to submit a waiver application. Fringe Theatre then receives a response from the CRA and will withhold/issue full refund as instructed.