Non-Resident Withholding Tax (Part XIII) Calculator

The statutory rate is 25%. Almost nobody actually pays that, if the paperwork to claim the tax treaty rate was filed correctly.

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How To Use This Calculator

Enter the type and amount of the payment, and the treaty rate that actually applies to the recipient's country of residence.

Part XIII withholding applies to Canadian-source dividends, interest, royalties, rents, and management fees paid to non-residents. The statutory rate is 25%, but nearly every one of Canada's roughly 90 tax treaties reduces it, sometimes to zero, provided the recipient properly certifies their residency.

Your Inputs

Type Of Payment

Payment Amount $100,000

Applicable Tax Treaty Rate 15.0%

Treaty rates vary by country and often by ownership percentage for dividends, a parent company owning 10% or more of the payer commonly qualifies for a lower rate than a portfolio investor. Interest paid to arm's-length non-residents is frequently exempt entirely under many treaties and domestic rules.

Withholding Comparison

Statutory Withholding (25%)

Treaty-Reduced Withholding

Savings From Claiming The Treaty Rate

Withholding At Statutory vs. Treaty Rate

The reduced treaty rate only applies if the non-resident recipient provides a valid NR301, NR302, or NR303 declaration confirming eligibility before payment. Without it, the payer is expected to withhold at the full 25% statutory rate regardless of the actual treaty entitlement.

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