{"id":1113,"date":"2014-05-05T16:12:05","date_gmt":"2014-05-05T16:12:05","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1113"},"modified":"2014-05-05T16:12:05","modified_gmt":"2014-05-05T16:12:05","slug":"cra-says-withholding-tax-applies-to-cross-border-franchise-relicensing-fee","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/05\/cra-says-withholding-tax-applies-to-cross-border-franchise-relicensing-fee\/","title":{"rendered":"CRA says withholding tax applies to cross-border franchise relicensing fee"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/05\/2013-0512921E5.pdf\">2013-0512921E5<\/a>, the CRA said that 25% withholding tax (WHT) applied to a cross-border \u201cfranchise relicensing fee\u201d under s. 212(1)(d).\u00a0 Subject to specific inclusions and exceptions, s. 212(1)(d) applies generally to any<br \/>\n&#8220;rent, royalty or similar payment&#8221; paid to a non-resident.\u00a0 This phrase describes a payment made to an owner of property for the right to use such property for a given period of time.\u00a0 The franchise relicensing fee here was captured by this legal description.\u00a0 The CRA did not discuss a possible reduction of the 25% WHT under any applicable tax treaty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/05\/2013-0512921E5.pdf\">2013-0512921E5<\/a>, the CRA said that 25% withholding tax (WHT) applied to a cross-border \u201cfranchise relicensing fee\u201d under s. 212(1)(d).\u00a0 Subject to specific inclusions and exceptions, s. 212(1)(d) applies generally to any<br \/>\n&#8220;rent, royalty or similar payment&#8221; paid to&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1113","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1113"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1113\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}