,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,a4i;nal ,tax on ,c]ta9 ,corpor,ns
  ,c>ry+ on ,busi;s 9 ,canada4
,numb]3 ,,it-#acg;,r#c
,date3 ,febru>y #bf1 #aiif
,ref];e3 ,special ,rel1se

               ,applic,n
    
  ,? ,special ,rel1se revises ,9t]pret,n
,bullet9 ,,it-#acg;,r#c dat$ ,janu>y
#ca1 #aiij & c.els ,9t]pret,n ,bullet9
,,it-#bgg;,r1 ,bran* ,tax--,e6ect ( ,tax
,tr1ties1 dat$ ,octob] #h1 #aihf4 ,see
#d 2l =a 4cus.n on ! e6ect ( tax
tr1ties4



                                      #a
          ,,it-#acg;,r#c;,,sr        a#a
,note3
  ,! ,special ,rel1se does n d1l )!
  propos$ am5d;ts 6sec;ns #bai & #bai.a
  ann\nc$ 0! ,m9i/] ( ,f9.e on ,april
  #bf1 #aiie4 ,g5],y1 ! am5d;ts 6sec;n
  #bai wd apply 6tax,n ye>s t 2g9 af
  #aiie & ^? = sec;n #bai.a 6! #aiif &
  subsequ5t tax,n ye>s4

           ,bullet9 ,revi.ns
    
#a4 .,p>agraph .#a (! bullet9 is revis$
  6take 963sid],n ! rep1l ( sec;n #hh.a
  &! 5act;t ( subsec;ns #abh.a7#d7 &
  #bej7#e.a7 "u ,s4,c4 #aiid1 c4#ba
  7=m]ly ,bill ;,c-#bg7 g5],y applica#
  af #aiib4 ,sec;n #hh.a1 g5],y applica#
  prior 6#aiic1 provid$ results simil>
  6! 9t]ac;n ( subsec;ns #abh.a7#d71
  #bej7#e7 & #bej7#e.a7 describ$ 9
  p>agraph #a (! bullet9 : n[ r1ds z
  foll[s3
  #a4 ,:ile sec;n #bai is -monly ?"\ ( z
    impos+ a tax on ! bran* op],ns    #b
          ,,it-#acg;,r#c;,,sr        b#a
    9 ,canada (a non-resid5t corpor,n1 x
    is n re/rict$ 9 xs applic,n 6bran*
    op],ns or 6non-resid5t corpor,ns4
    ,sec;n #bai applies 6e corpor,n t is
    n1 "?\t a tax,n ye>1 a ,canadian
    corpor,n z def9$ 9 subsec;n #hi7#a7
    & ?us applies 6any corpor,n c>ry+ on
    busi;s 9 ,canada 9 a "picul> tax,n
    ye> t 0 n 9corporat$ 9 ,canada1 &
    7a7 0 n1 "?\t ! tax,n ye>1 resid5t 9
      ,canada1 or
    7b7 was1 "?\t ! tax,n ye>1 resid5t 9
      ,canada b 0 n resid5t 9 ,canada
      3t9u\sly s9ce ,june #ah1 #aiga4
  ,a corpor,n 9corporat$ 9 ,canada is n
  subject 6sec;n #bai un.s x c1ses 6be a
  resid5t 9 ,canada4 ,s* a *ange (
  resid5tial /atus w o3ur if
    7c7 m9d1 manage;t & 3trol (!
      corpor,n >e \tside ,canada &
      subsec;n #bej7#e.a7 applies z a
      result (! corpor,n 2+ 3t9u$ \tside
      ,canada1 or
                                      #c
          ,,it-#acg;,r#c;,,sr        c#a
    7d7 ! corpor,n is deem$ 6be a non-
      resid5t ( ,canada 0subsec;n
      #bej7#e7 z a result (! corpor,n
      2com+ resid5t 9 a c.try ) :
      ,canada has a tax tr1ty 9 =ce &( x
      2+ e/abli%$ t ! corpor,n w 2 tr1t$
      z a resid5t ( t c.try =! purpose
      (! tax tr1ty4
  ,": ? is ! case1 sec;n #bai may 2g9
  6apply />t+ )! tax,n ye> deem$
  0subp>agraph #abh.a7#d77a77;i7 6h 2gun
  at ! "t ! corpor,n c1s$ 6be resid5t 9
  ,canada4

  ,z a result (! abv1 subsec;ns
  #abh.a7#d71 #bej7#e7 & #bej7#e.a7 >e
  a4$ to1 & sec;n #hh.a is delet$ f1 !
  ref];e >ea (! bullet94
#b4 .,p>agraph .#b (! bullet9 is revis$
  6reflect ! rep1l ( sec;n #hh.a1 !
  9troduc;n ( subsec;n #abh.a7#d7 &
  am5d;ts 6sec;n #bai.a 5act$ "u ,s4,c4
  #aiid1 c4#ba g5],y applica# af #aiib4
  ,sec;n #hh.a1 g5],y applica#        #d
          ,,it-#acg;,r#c;,,sr        d#a
  prior 6#aiic1 produc$ a simil> result
  6t describ$ 9 ! f/ s5t;e (! revi.n
  6p>agraph #b4 ,p>agraph #b (! bullet9
  n[ r1ds z foll[s3
  #b4 ,a corpor,n t c1ses 6be a
    ,canadian corpor,n 0c1s+ 6be a
    resid5t 9 ,canada is subject 6tax "u
    sec;n #bai.a =! tax,n ye> t is deem$
    0subp>agraph #abh.a7#d77a77;i7 6h
    5d$ immly 2f ! "t ! corpor,n c1s$
    6be resid5t 9 ,canada4 ,! tax is #be
    p]c5t 7see #c 2l7 (! am.t 0: ! fair
    m>ket value ( xs prop]ties at ! "t x
    c1s$ 6be a ,canadian corpor,n exce$s
    ! total1 at t "t1 ( xs pd-up capital
    & xs liabilities1 o!r ?an xs
    liabil;y 6pay divid5ds &! tax paya#
    "u sec;n #bai.a4 ,sec;n #bai.a w al
    apply 6a corpor,n t has 3t9u$ \tside
    ( ,canada & c1s$ 6be a ,canadian
    corpor,n4
--------------------------------------#b
#c4 .,p>agraph .#c (! bullet9 is revis$
  6reflect am5d;ts 6sec;n #bai.b &!   #e
          ,,it-#acg;,r#c;,,sr        a#b
  5act;t ( sec;n #bai.c "u ,s4,c4 #aiid1
  c4#ba applica# 6! #aihe & subsequ5t
  tax,n ye>s4 ,p>agraph #c (! bullet9 n[
  r1ds z foll[s3
  #c4 ,! /&>d rate ( tax impos$ 0sec;n
    #bai is #be p]c5t4 ,! imposi;n ( tax
    "u sec;n #bai is subject 6any
    ov]rid+ provi.n 9 a bilat]al 9come
    tax tr1ty t may exempt or "ply
    exempt a corpor,n f1 or limit ! rate
    (1 ? tax 7see #d.a 6#d.c 2l74 ,sec;n
    #bai.b provides t ": a corpor,n is
    resid5t 9 a c.try ) : ,canada has an
    9come tax tr1ty t
    7a7 does n limit ! rate ( a4i;nal
      tax on corpor,ns resid5t 9 t
      c.try1 b
    7b7 ! tr1ty limits ! rate ( tax
      impos$ on divid5ds pd 0a corpor,n
      resid5t 9 ,canada 6a corpor,n
      resid5t ( t c.try1
  ! rate ( tax impos$ "u sec;n #bai 9
  any tax,n ye> 9 : ! tr1ty appli$ on !
  la/ "d ( t tax,n ye> % 2 ! rate (   #f
          ,,it-#acg;,r#c;,,sr        b#b
  ,canadian non-resid5t )hold+ tax
  applica# "u t tr1ty 6divid5ds pd 0a
  corpor,n resid5t 9 ,canada 6a corpor,n
  resid5t 9 t c.try t [ns all ! %>es (!
  corpor,n resid5t 9 ,canada 7! 8reduc$
  rate074

  ,": 7b7 abv applies 6a corpor,n on !
  f/ "d af x c1ses 6be a ,canadian
  corpor,n1 sec;n #bai.c provides t !
  reduc$ rate replaces ! #be@3p rate 9
  sec;n #bai.a4 ,= tax,n ye>s t 5d af
  ,june #aiic1 sec;n #bai.c only applies
  ": x _c r1sonably 2 3sid]$ t "o (! ma9
  r1sons =! corpor,n 2com+ resid5t 9 !
  o!r c.try 0 6reduce ! am.t ( tax paya#
  "u ,"p ,,xiii or ,,xiv4
#d4 ,! foll[+ new ..p>agraphs #d.a1 #d.b
  & .#d.c (! bullet9 replace p>agraphs
  #b1 #c & #d1 respectively1 ( c.ell$
  ,9t]pret,n ,bullet9 ,,it-#bgg;,r1
  ,bran* ,tax--,e6ect ( ,tax ,tr1ties3

                                      #g
         ,e6ect ( ,tax ,tr1ties      c#b
    
  #d.a4 ,ea* ( ,canada's tax tr1ties
    3ta9s a provi.n 6exempt corpor,ns
    resid5t 9 ! o!r c.try f ,canadian
    tax on busi;s pr(its un.s s* pr(its
    >e attributa# 6a busi;s c>ri$ on "?
    a p]man5t e/abli%;t 9 ,canada4 ,?
    exemp;n applies 6bo? ! normal 9come
    tax & 6! bran* tax "u sec;n #bai on
    busi;s pr(its ( corpor,ns4 ,! curr5t
    v].n ( ,,it-#agg1 ,p]man5t
    ,e/abli%;t (a ,corpor,n 9 a ,prov9ce
    &(a ,=eign ,5t]prise 9 ,canada1
    \tl9es ! g5]al pr9ciples us$ 9
    det]m9+ :e!r or n a corpor,n has a
    p]man5t e/abli%;t 9 ,canada4 ,h["e1
    s9ce ! def9i;n (! t]m 8p]man5t
    e/abli%;t0 may v>y 2t tr1ties1
    ref];e %d al 2 made 6! relevant
    tr1ty 9 mak+ a det]m9,n 9 any
    specific case4
  #d.b4 ,mo/ (! exi/+ tax tr1ties 3ta9
    >ticles limit+ ! rate ( bran* tax "u
    sec;n #bai4 ,examples ( tax       #h
          ,,it-#acg;,r#c;,,sr        d#b
    tr1ties 3ta9+ s* an >ticle >e !
    tr1ties )! ,unit$ ,/ates ( ,am]ica1
    ! ,unit$ ,k+dom ( ,grt ,brita9 &
    ,nor!rn ,irel& & ,mexico4 ,see #c
    abv ": a corpor,n is resid5t 9 a
    c.try ) : ,canada has an 9come tax
    tr1ty t does n limit ! rate (
    a4i;nal tax on corpor,ns resid5t 9 t
    c.try4
  #d.c4 ,ref];e %d 2 made n only 6!
    tr1ties exi/+ at ! date ( ? public,n
    b 6any new tr1ties or protocols
    modify+ exi/+ tr1ties : -e 96=ce
    subsequ5t 6! date ( ? bullet91 s9ce
    s* tr1ties may 3ta9 provi.ns t a6ect
    a corpor,n's liabil;y = tax purposes
    "u sec;n #bai ( corpor,ns c>ry+ on
    busi;s 9 ,canada4
#e4 .,p>agraph .#e7;iii7 (! bullet9 is
  revis$ 6reflect ! am5d;t 6p>agraph
  #bai7#a77a4#c7 5act$ "u ,s4,c4 #aiid1
  c4#g 7=m]ly ,bill ;,c-#ae7 applica# af

                                      #i
          ,,it-#acg;,r#c;,,sr        e#b
  ,decemb] #bj1 #aiia4 ,p>agraph
  #e7;iii7 (! bullet9 n[ r1ds z foll[s3
  7;iii7 am.t deduct$ z a res\rce all[.e
    7o!r ?an 0r1son ( 2+ a memb] (a
    "pn]%ip7 9 -put+ taxa# 9come e>n$ 9
    ,canada =! tax,n ye>
#f4 .,p>agraph .#e7;vii7 (! bullet9 is
  revis$ 6reflect ! am5d;t 6p>agraph
  #bai7#a77e7 5act$ "u ,s4,c4 #aiid1
  c4#g applica# 6tax,n ye>s 5d+ af ,june
  #aihi4 ,p>agraph #e7;vii7 (! bullet9
  n[ r1ds z foll[s3
  7;vii7 ! total (! taxes paya# "u ,"ps
    ;,i1 ,i4#c & ,,vi =! tax,n ye> less
    ! por;n (! tax paya# "u ,"p #a
    attributa# 6net taxa# capital ga9s
    specifi$ 9 7;vi7 abv
#g4 ,p>agraphs #e7;vi7 6#e7;xi7 (!
  bullet9 li/ ! am.ts t may 2 deduct$ 9
  -put+ ! am.t on : a non-resid5t
  corpor,n's bran* tax liabil;y is bas$4
  .,p>agraph .#e7;viii4#a7 is a4$ 6!
  bullet9 6take 963sid],n ! 5act;t (
  p>agraph #bai7#a77f4#a7 "u         #aj
          ,,it-#acg;,r#c;,,sr        f#b
  ,s4,c4 #aiid1 c4#g applica# 69t]e/ &
  p5alties pd 9 ! #aihh & subsequ5t
  tax,n ye>s4 ,new p>agraph #e7;viii4#a7
  (! bullet9 r1ds z foll[s3
  7;viii4#a7 non-deducti# 9t]e/ or
    p5alties pd 9 ! tax,n ye> 9 respect
    ( f$]al or prov9cial 9come taxes
#h4 ,=! same r1son giv5 9 #e abv1
  .p>agraph .#f7;iii7 (! bullet9 is
  revis$ 6r1d z foll[s3
  7;iii7 am.t deduct$ z a res\rce all[.e
    7o!r ?an 0r1son ( 2+ a memb] (a
    "pn]%ip7 9 -put+ taxa# 9come =!
    tax,n ye>
--------------------------------------#c
#i4 ,=! same r1son giv5 9 #f abv1
  .p>agraph .#f7;vii7 (! bullet9 is
  revis$ 6r1d z foll[s3
  7;vii7 ! total (! taxes paya# "u ,"ps
    ;,i1 ,i4#c & ,,vi =! tax,n ye>
#aj4 ,=! same r1son giv5 9 #g abv1
  .p>agraph .#f7;viii4#a7 is a4$ 6!
  bullet9 6-plete ! li/ 9 p>agraphs
  #f7;vii7 6#f7;xiv7 (! am.ts t      #aa
          ,,it-#acg;,r#c;,,sr        a#c
  may 2 deduct$ 9 -put+ ! am.t on : a
  resid5t corpor,n's bran* tax liabil;y
  is bas$4 ,new p>agraph #f7;viii4#a7 (!
  bullet9 r1ds z foll[s3
  7;viii4#a7 non-deducti# 9t]e/ or
    p5alties pd 9 ! tax,n ye> 9 respect
    ( f$]al or prov9cial 9come taxes
#aa4 .,p>agraph .#af (! bullet9 is
  revis$ 6take 963sid],n ! am5d;t made
  6subsec;n #hjh7#c7 (! ,regul,ns
  0,p4,c4 #aiic-aedh1 ,,sor #ic-cie
  applica# 6tax,n ye>s 5d+ af ,augu/
  #aa1 #aiic4 ,p>agraph #af (! bullet9
  n[ r1ds z foll[s3
  #af4 ,qualifi$ 9ve/;t 9 prop]ty 9
    ,canada 9cludes c]ta9 liquid assets
    z def9$ 9 subsec;n #hjh7#c7 (!
    ,regul,ns =a corpor,n & 9 subsec;n
    #hjh7#f7 (! ,regul,ns =a "pn]%ip4 ,!
    specifi$ liquid assets =a corpor,n
    )a tax,n ye> 5d+ af ,augu/ #aa1
    #aiic m/ ei h be5 g5]at$ 0a busi;s
    c>ri$ on 0! corpor,n 9 ,canada1 or
    us$ or held 0! corpor,n 9 !      #ab
          ,,it-#acg;,r#c;,,sr        b#c
    c\rse ( c>ry+ on a busi;s 9 ,canada4
    ,! specifi$ liquid assets t qualify
    =a corpor,n )a tax,n ye> 5d+ 2f
    ,augu/ #ab1 #aiic or =a "pn]%ip ne$
    n 2 id5tifi$ )! busi;s c>ri$ on 9
    ,canada4 ,an am.t deposit$ )a bank
    or o!r recogniz$ f9ancial 9/itu;n1
    denom9at$ 9 ei ,canadian or a =eign
    curr5cy1 may qualify only if !
    deposit is )a bran* or o!r (fice 9
    ,canada ( t 9/itu;n4 ,o!r deposits
    or prepd exp5ses d n qualify z
    all[a# liquid assets or o!rwise z an
    9ve/;t 9 prop]ty4
  
  ,if y h any -;ts reg>d+ ! matt]s
4cuss$ 9 ? ,special ,rel1se1 pl1se s5d
!m to3
  ,director1 ,te*nical ,public,ns
    ,divi.n
  ,policy & ,legisl,n ,bran*
  ,rev5ue ,canada
  #hge ,h]on ,road
  ,ottawa ,,on ,k#a;,a #j;,l#h       #ac
























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