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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,"k-,h[ & ,simil> ,pay;ts 6,non-
  ,resid5ts
,numb]3 ,,it-#cjc
,date3 ,april #h1 #aigf
,ref];e3 ,p>agraph #bab7#a77d7

#a4 ,? ,bullet9 \tl9es ! ,de"p;t's
  posi;n ) respect 6! tax,n ( pay;ts
  0p]sons resid5t 9 ,canada 6non-
  resid5ts = :at is -monly ref]r$ 6z
  8"k-h[04
#b4 ,x %d 2 not$ t "u c]ta9 circum/.es
  ev5 pay;ts 6? nature made 0non-
  resid5ts may 2 subject 6,canadian tax
  if1 "u ! provi.ns (! ,act1 z am5d$
  0,s4,c4 #aigd/e1 c4#bf1 !y >e deem$
  6be resid5t 9 ,canada = purposes (!
  "picul> pay;ts4
                                      #a
               ,,it-#cjc             a#a
#c4 ,no all-9clusive def9i;n ( 8"k-h[0
  pay;ts exi/s1 b =! purposes ( ?
  ,bullet91 ! ,de"p;t reg>ds !m z 9clud+
  pay;ts = special k1 skills or
  te*niques : >e 3sid]$ b5eficial 9 !
  3duct (a busi;s4 ,s* pay;ts may 2 =
  exp]tise fl[+ f exp]i;e1 abil;y or
  rese>* : may 2 reflect$ 9 bluepr9ts1
  draw+s1 specific,ns1 plant lay\ts1
  designs1 secret processes & =mulae4
#d4 ,p>agraph #bab7#a77d7 subjects a
  non-resid5t p]son 6an 9come tax (
  #be@3p on all am.ts pd or cr$it$ 6hm
  z1 on a3.t or 9 lieu ( pay;t (1 or 9
  satisfac;n (1 r5t1 royalty or a simil>
  pay;t1 9clud+ ! pay;ts describ$ 9
  subp>agraphs 7;i7 "? 7;v71 b n 9clud+
  ! pay;ts describ$ 9 subp>agraphs 7;vi7
  "? 7;x74 ,until #aigf b n 9clud+ t
  ye>1 ! provi.ns ( subsec;n #aj7#b7
  ,,itar h ! e6ect ( reduc+ ! rate (
  )hold+ tax f #be@3p 6#ae@3p4 ,!
  provi.ns ( any tax tr1ty 6: ,canada is
  a "py may a6ect ! rate ( s* tax1    #b
               ,,it-#cjc             b#a
  or ev5 :olly exempt "s pay;ts 7see
  p>agraph #cd 2l74
#e4 ,p>agraph #bab7#a77d7 cov]s _m
  pay;ts : fall \tside ( 8"k-h[0 &
  simil> pay;ts & : >e "!=e 2y ! scope (
  ? ,bullet94 ,any r5t1 royalty or
  simil> pay;t1 :e!r x 2 = 8"k-h[01 =!
  use ( 3fid5tial te*nical 9=m,n1 or =
  any o!r 3sid],n1 is subject 6tax "u
  p>agraph #bab7#a77d7 un.s x falls )9 !
  excep;ns describ$ 9 subp>agraphs 7;vi7
  "? 7;x74 ,? m1ns t if an am.t is r5t1
  royalty or a simil> pay;t1 x ne$ n
  fall )9 ! specific cases enum]at$ 9
  subp>agraphs 7;i7 "? 7;v7 9 ord]
  6attract )hold+ tax4
--------------------------------------#b
#f4 ,9 a4i;n 6! =ego+1 "k-h[ pay;ts may
  2 exempt f )hold+ tax ": ! non-resid5t
  c>ries on busi;s 9 ,canada 7see
  p>agraph #be 2l74
#g4 ,! ,de"p;t 3sid]s t ! ^ws 8r5t0 &
  8royalty0 >e us$ 9 a broad s5se & >e n
  necess>ily re/rict$ 6p]iodic        #c
               ,,it-#cjc             a#b
  pay;ts1 b may 9 c]ta9 circum/.es
  9clude s+le or lump-sum pay;ts4 ,9
  g5]al1 a r5t or royalty repres5ts a
  pay;t made 6! [n] ( prop]ty =! "r 6use
  s* prop]ty =a giv5 p]iod ( "t4 ,9 mo/
  circum/.es ": a r5t or royalty is pd1
  ! [n] (! prop]ty us$ 0! p]son pay+ !
  r5t or royalty reta9s [n]%ip4 ,h["e1
  ": prop]ty 9 ,canada is sold & pay;t
  is dep5d5t ^u ! use ( or produc;n f !
  prop]ty1 ? pay;t w 2 subject 6tax "u
  subp>agraph #bab7#a77d77;v71 un.s !
  prop]ty is agricultural l&4
#h4 ,! ,de"p;t al 3sid]s t1
  7a7 a"p f ! circum/.es set =? 9
    subp>agraph #bab7#a77d77;x7 7see
    p>a4 #cc 2l71 ! deductibil;y "u ,"p
    ;,i (a pay;t = 8"k-h[0 0! p]son mak+
    ! pay;t has no be>+ on :e!r x is
    subject 6)hold+ tax2 &
  7b7 ! taxabil;y (! pay;t "u p>agraph
    #bab7#a77d7 does n dep5d ^u :e!r or
    n ! recipi5t wd h be5 taxa# 9
                                      #d
               ,,it-#cjc             b#b
    respect (! pay;t _h he be5 resid5t 9
    ,canada4
#i4 ,! ^ws immly foll[+ ! 9troductory
  ^ws 9 p>agraph #bab7#a77d71 "nly
  8 ''' 9clud+1 b n s z 6re/rict !
  g5]al;y (! =ego+1 any pay;t '''0 h !
  e6ect ( 9clud+ )9 ! scope (! provi.n !
  pay;ts describ$ 9 subp>agraph 7;i7 "?
  7;v71 : ne$ n 2 r5t1 royalty or a
  simil> pay;t4

     ,pay;ts =! ,"r 6,use 9 ,canada
     7subp>agraph #bab7#a77d77;i77
           7p>agraphs #aj-ac7
    
#aj4 ,? provi.n ext5ds 6any pay;t1
  9clud+ a s+le or lump-sum pay;t1 made
  6a non-resid5t =! "r 6use1 9 ,canada1
  any prop]ty1 9v5;n1 trade m>k1 design
  or model1 plan1 secret =mula1 process1
  trade "n1 pat5t or o!r ?+ :at"e4 ,s* a
  pay;t w 2 subject 6tax :e!r or n if
  falls )9 ! category ( r5t1 royalty or
  a simil> pay;t4                     #e
               ,,it-#cjc             c#b
#aa4 ,"s -mon examples ( pay;ts : fall
  )9 ? subp>agraph >e3
--------------------------------------#c
  7a7 fran*ise pay;ts : 5compass ! use (
    trade m>ks1 trade "ns or 9du/rial
    designs2
  7b7 pay;ts =! use ( bluepr9ts =! lay-\
    ( plants1 build+s or equip;t2
  7c7 pay;ts =! "r 6use special
    proc$ures1 processes or recipes
    p]ta9+ 6a busi;s1 :e!r or n
    9corporat$ 9 a fran*ise1 pat5t or
    trade m>k2 &
  7d7 pay;ts =! use ( or ! "r 6use
    prototypes or designs = manufacture
    9 ,canada4
#ab4 ,on ! o!r h&1 ! ,de"p;t does n
  reg>d ! foll[+ pay;ts z fall+ )9 !
  provi.ns ( subp>agraph
  #bab7#a77d77;i73
  7a7 pay;ts =! \t"r pur*ase (a pat5t2
  7b7 pay;ts made 6obta9 an \t"r
    assign;t ( an exi/+ lic;e f !
    lic5see4                          #f
               ,,it-#cjc             a#c
  ,9 ! latt] case1 h["e1 pay;ts requir$
  6be made 6! lic5sor "u ! t]ms (! lic;e
  may 2 subject 6)hold+ tax4 ,if !
  pay;ts "u 7a7 or 7b7 >e dep5d5t ^u !
  use ( or produc;n f ! pat5t or lic;e1
  tax is paya# "u subp>agraph
  #bab7#a77d77;v74
#ac4 ,! ,de"p;t al draws a 4t9c;n 2t
  pay;ts : >e made =! "r 6use prop]ty1
  9v5;ns1 etc4 9 ,canada & pay;ts : >e
  made = s]vices ov] & abv ! grant+ (!
  "r 6use s* prop]ty4 ,! =m] pay;ts w 2
  subject 6tax "u subp>agraph
  #bab7#a77d77;i71 ":as ! latt] may 2
  subject 6tax "u subp>agraph
  #bab7#a77d77;iii71 dep5d+ ^u ! t]ms (!
  pay;ts4

     ,pay;ts = ,9=m,n 7subp>agraph
      #bab7#a77d77;ii77 7p>agraphs
                #ad-ai7
    
#ad4 ,"u ? provi.n any pay;t = 9=m,n
  3c]n+ 9du/rial1 -m]cial or          #g
               ,,it-#cjc             b#c
  sci5tific exp]i;e w 2 subject 6tax ":
  ! total am.t pay;t z 3sid],n = s*
  9=m,n is dep5d5t 9 :ole or 9 "p ^u3
  7a7 ! use 6be made "!( or ! b5efit 6be
    deriv$ "!from2
  7b7 produc;n or sales ( gds or
    s]vices1 or
  7c7 pr(its4
--------------------------------------#d
#ae4 ,s* pay;ts w 2 taxa# reg>d.s ( ": !
  9=m,n is obta9$ or us$ except 9 !
  circum/.es 3templat$ 9 subp>agraph
  #bab7#a77d77;x7 ": a por;n (! am.t is
  deducti# 9 -put+ ! 9come (! pay] "u
  ,"p ;,i f a busi;s c>ri$ on 0hm 9 a
  c.try o!r ?an ,canada 7see p>agraph
  #cc 2l74 ,simil>ly1 taxabil;y does n
  necess>ily re/ ^u ! pay;t 2+ dep5d5t
  on use1 produc;n or pr(its (! p]son
  0:om ! pay;ts >e made4 ,9 c]ta9
  circum/.es ! provi.n w ext5d 6cases ":
  pay;t is dep5d5t ^u ! use1 produc;n or
  pr(its (! recipi5t (! pay;ts or a ?ird
  "pies4                              #h
               ,,it-#cjc             a#d
#af4 ,= example1 an agree;t )a non-
  resid5t :o furni%es ! 9=m,n may
  provide t ! pay] has ! "r 6pass on !
  9=m,n 6o!r p]sons :o may make pay;ts
  6! pay] ac 6! use1 b5efit1 produc;n1
  sales or pr(its : !y 9 turn derive4 ,9
  s* a case1 ! pay;ts 6! non-resid5t w 2
  subject 6tax4
#ag4 ,": an 9itial pay;t ( s* a fix$ sum
  is c\pl$ ) future pay;ts dep5d+ ^u
  use1 produc;n or pr(its1 ! ,de"p;t w
  norm,y reg>d ! 9itial pay;ts z
  sep>ate4 ,? w 2 a "q ( fact 6be
  det]m9$ 9 ea* set ( circum/.es & w
  dep5d on a numb] ( factors1 9clud+ !
  rel,n%ip (! pay] & recipi5t1 ! nature
  (! "picul> busi;s1 any hi/ory ( simil>
  pay;ts &! degree ( c]ta9ty t "! w 2
  subsequ5t pay;ts af ! 9itial pay;t4
#ah4 ,! ,de"p;t does n reg>d a once-&-=-
  all pay;t 9 a predet]m9$ am.t = s*
  9=m,n 7s* z ! "r 6att5d a view+ or an
  exhibi;n7 z a pay;t : is dep5d5t 9
                                      #i
               ,,it-#cjc             b#d
  :ole or 9 "p ^u use1 produc;n or
  pr(its4
#ai4 ,= example1 9 ! fa%ion design
  busi;s pay;ts may 2 divid$ 96two g5]al
  types2 pay;ts =! "r to 8view0 ! non-
  resid5t's /yles & designs1 & pay;ts =!
  use (! 9=m,n s obta9$4 ,9 g5]al1
  provid$ t ! =m] pay;ts >e unqualifi$1
  d n 9volve ! furni%+ ( draw+s or
  designs & d n dep5d ^u ! use (! 9=m,n
  obta9$1 !y w n 2 subject 6tax "u ?
  subp>agraph4 ,on ! o!r h&1 ": ! 9=m,n
  is subsequ5tly us$ & pay;ts >e made =
  s* use1 ^! pay;ts may 2 subject 6tax1
  dep5d+ on ! circum/.es1 "u ei
  subp>agraph 7;i71 if designs or models
  >e us$ 9 ,canada1 or 7:ii71 if !
  pay;ts >e bas$ ^u use1 produc;n or
  pr(its4




                                     #aj
           ,pay;ts = ,s]vices         #e
              7subp>agraph
     #bab7#a77d77;iii77 7p>agraphs
                #bj-bd7
    
#bj4 ,"u ? provi.n any pay;t = s]vices (
  an 9du/rial1 -m]cial or sci5tific "*
  p]=m$ 0a non-resid5t p]son w 2 subject
  6tax ": ! total am.t paya# z 3sid],n =
  s* s]vices is dep5d5t 9 :ole or 9 "p
  ^u3
  7a7 ! use 6be made "!( or ! b5efit 6be
    deriv$ "!from2
  7b7 produc;n or sales ( gds or
    s]vices2 or
  7c7 pr(its
#ba4 ,s* pay;ts w 2 taxa# reg>d.s ( ":
  s]vices >e r5d]$ except 9 ! circum/.es
  3templat$ 9 subp>agraph
  #bab7#a77d77;x71 ": a por;n (! am.t is
  deducti# 9 -put+ ! 9come (! pay] "u
  ,"p ;,i f a busi;s c>ri$ on 0hm 9 a
  c.try o!r ?an ,canada 7see p>agraph
  #cc 2l74 ,simil>ly1 taxabil;y does n
  necess>ily re/ ^u ! pay;ts 2+      #aa
               ,,it-#cjc             a#e
  dep5d5t on use1 produc;n or pr(its (!
  p]son 0:om ! pay;ts >e made4 ,9 c]ta9
  circum/.es ! provi.n w ext5d 6cases ":
  pay;t is dep5d5t ^u ! use1 produc;n or
  pr(its (! recipi5t (! pay;ts or ( ?ird
  "pies4 ,pay;ts = s]vices p]=m$ 9
  3nec;n )! sale ( prop]ty or ! negoti,n
  ( 3tracts >e expect$4
#bb4 ,": fees >e *>g$ = s]vices on a p]
  h\r1 p] diem or simil> basis1 x is a
  "q ( fact :e!r ! am.t dep5ds ^u ! use
  6be made or ! b5efit 6be deriv$ f s*
  s]vices4
#bc4 ,examples ( pay;ts : may fall )9 ?
  subp>agraph >e3
  7a7 fees = te*nical or produc;n
    s]vices ": ! am.t ( s* fees dep5ds 9
    any way ^u p]=m.e or productiv;y2 &
  7b7 *>ges = product develop;t & m>ket+
    "k-h[ or rese>* : v>y 9 a3ord.e )
    produc;n or sales4
#bd4 ,pay;ts : fall )9 ! descrip;n (
  manage;t or adm9i/r,n fees or *>ges )9
  ! m1n+ ( p>agraph #bab7#a77a7 >e   #ab
               ,,it-#cjc             b#e
  n reg>d$ z pay;ts = s]vices ( an
  9du/rial1 -m]cial or sci5tific "*
  ref]r$ 6in subp>agraph
  #bab7#a77d77;iii74 ,":as ! =m] relate
  6! /aff1 adm9i/rative or manag]ial
  func;ns ( an op],n1 ! latt] >e m
  directly relat$ 6xs 9come-produc+
  activities4 ,= example 9 ! case (a
  hotel op],n1 ! manage;t & adm9i/r,n
  side wd 9clude hir+ & o!r p]sonnel
  s]vices &!
--------------------------------------#f
  design+ ( a3.t+1 secur;y1 9v5tory &
  cat]+ sy/ems1 :ile promo;n & public;y1
  5t]ta9;t book+ & res]v,n & cr$it c>d
  s]vices1 z s*1 norm,y fall )9 !
  category ( s]vices ( an 9du/rial or
  -m]cial "*4 ,h["e1 if a pay;t is =
  s]vices : >e pr9cip,y 9 ! nature (
  manage;t or adm9i/r,n1 ! ,de"p;t w n
  reg>d x z "ply = s]vices ( an
  9du/rial1 -m]cial or sci5tific "* ev5
  ?\< "s ele;ts (! latt] may 2 pres5t4
  ,6! ext5t t ! pay;t wd 2 a         #ac
               ,,it-#cjc             a#f
  manage;t or adm9i/r,n fee z describ$ 9
  p>agraph #bab7#a77a71 if x falls )9 !
  exempt+ provi.ns ( subsec;n #bab7#d7 x
  w n 2 subject 6tax "u ei p>agraph
  #bab7#a77a7 or subp>agraph
  #bab7#a77d77;iii74

     ,pay;ts 6,non-,resid5ts ,c>ry+
     on ,busi;s 9 ,canada 7p>agraph
                  #be7
    
#be4 ,": any (! pay;ts ref]r$ 6in
  p>agraph #bab7#a77d7 >e made 6a non-
  resid5t p]son :o c>ries on busi;s 9
  ,canada &! pay;ts may r1sonably 2
  attribut$ 6! busi;s c>ri$ on 0hm 9
  ,canada1 ! non-resid5t p]son w n 2
  subject 6tax "u ,"p ,,xiii (! ,act1 b
  "u ,"p ;,i4 7,subsec;n #hje7#a71
  ,9come ,tax ,regul,ns74 ,h["e1 un.s !
  p]son mak+ ! pay;ts is au?oriz$ 0!
  ,m9i/] 7"u subsec;n #hje7#b7 (!
  ,regul,ns7 6make s* pay;ts )\t any
  deduc;n "u sec;n #bae1 he w 2      #ad
               ,,it-#cjc             b#f
  held p]son,y lia# =! tax if ! non-
  resid5t recipi5t is f.d n 6h be5 c>ry+
  on busi;s 9 ,canada4

     ,divi.n or ,alloc,n ( ,pay;ts
             7p>agraph #bf7
    
#bf4 ,! ,de"p;t recognizes t "! may 2
  circum/.es 9 : a pay;t may r1sonably 2
  reg>d$ z 2+ 9 "p a pay;t : is subject
  6tax "u p>agraph #bab7#a77d7 & 9 "p a
  pay;t : is n subject 6s* tax4 ,? mi<t
  o3ur1 = example1 if a pay;t is made =!
  use or "r 6use prop]ty 9 ,canada & 9
  o!r c.tries4 ,9 g5]al1 ! ,de"p;t w
  take ! posi;n t ! full am.t ( s* a
  pay;t is subject 6tax1 b w 2 prep>$
  6review ! matt] ": ! taxpay] or !
  ,canadian resid5t pay+ ! am.t c
  provide satisfactory evid;e t a por;n
  ( any s* pay;t %d n 2 subject 6! tax4


                                     #ae
        ,pay;ts = ,exclusiv;y or     c#f
           ,agree;ts ,n 6,use
     7subp>agraph #bab7#a77d77;iv77
             7p>agraph #bg7
    
#bg4 ,? provi.n applies 6pay;ts made 6a
  non-resid5t 65sure t c]ta9 prop]ty or
  9=m,n w n 2 us$ 0! payee or 8 lic5see1
--------------------------------------#g
  7a7 9 ! case ( items describ$ 9
    subp>agraph #bab7#a77d77;i71 9
    ,canada1 or
  7b7 9 ! case ( 9=m,n 3c]n+ 9du/rial1
    -m]cial or sci5tific exp]i;e1 ei 9
    ,canada or else":4
  
          ,copy"r 7subp>agraph
      #bab7#a77d77;vi77 7p>agraph
                  #bh7
    
#bh4 ,royalties & simil> pay;ts 9
  respect ( copy"r >e n subject 6)hold+
  tax4

                                     #af
          ,bona ,fide ,co/ %>+       a#g
        ,>range;ts 7subp>agraph
     #bab7#a77d77;viii77 7p>agraphs
                #bi-cb7
    
#bi4 ,? subp>agraph excludes f ! tax
  o!rwise impos$ "u p>agraph #bab7#a77d7
  pay;ts made "u a bona fide co/ %>+
  >range;t "u : ! p]son mak+ ! pay;t
  %>es on a r1sona# basis ) "o or m non-
  resid5t p]sons rese>* & develop;t
  exp5ses 9 ex*ange = an 9t]e/ 9 all
  prop]ty or o!r ?+s ( value t may
  result "!from4
#cj4 ,! ,de"p;t 3sid]s t =a bona fide
  co/ %>+ >range;t 6exi/1 ! foll[+
  f1tures m/ 2 pres5t3
  7a7 9 a4i;n 6%>+ rese>* & develop;t
    co/s1 any b5efits or 9come result+ f
    t rese>* & develop;t m/ al 2 %>$2
  7b7 s* co/s & rev5ues m/ 2 %[n 6h be5
    %>$ on a r1sona# basis 7! ,de"p;t
    does n necess>ily reg>d sales1
    produc;n or pr(its z e/abli%+ a
    r1sona# basis = %>+ co/s72       #ag
               ,,it-#cjc             b#g
  7c7 :ile only a por;n (! co/ may 2
    *>g$ 6! ,canadian resid5t1 he m/ rcv
    an 9t]e/ 9 all prop]ty or o!r ?+s (
    value result+ f ! >range;t2
  7d7 ! ,canadian resid5t %d h title or
    full a3ess to1 or a r1l & g5u9e
    9t]e/ 7& 9 ! case ( non->m's l5g?
    transac;ns g5],y an unre/rict$
    9t]e/7 in1 all prop]ty or ?+s (
    value g5]at$ 0! rese>* & develop;t1
    9clud+ pat5ts & "k-h[1 except t3
    7;i7 ": ! non-resid5t does n p]mit !
      ,canadian resid5t 6h title 6a
      pat5t1 design1 etc41 ! latt] %d h
      unre/rict$ use ( x at no a4i;nal
      co/2 &
--------------------------------------#h
    7;ii7 geographical re/ric;ns wd 2
      p]missi# s l;g z ! ,canadian
      resid5t 7 5titl$ 6use ! prop]ty 9
      "q any": 9 ,canada ": he has a
      manufactur+ or sales op],n2
  7e7 d\# *>ges %d n >ise "? *>g+ a
    taxpay] =a por;n (! rese>* &     #ah
               ,,it-#cjc             a#h
    develop;t co/s & al a royalty =!
    subsequ5t use (! prop]ty4
#ca4 ,9 ea* case1 ! ,de"p;t wd wi% 6te/
  ! propriety (! co/-%>+ basis 0exam9+ !
  value or pot5tial value (! >range;t 6!
  ,canadian resid5t & 0asc]ta9+ :e!r xs
  %>e (! total co/s 0 9 l9e )! size &
  nature ( xs op],ns & :e!r x is likely
  6b5efit f ! >range;t 9 ! li<t (!
  rel,n%ip ( xs size1 op],ns & 3tribu;n
  6! size1 op],ns & 3tribu;n ( all !
  3tributors tak5 tgr4
#cb4 ,! ^ws 8rese>* & develop;t0 >e q
  broad & >e 9t]pret$ z 9clud+ n only
  sci5tific rese>* & develop;t b al
  c]ta9 (! activities specific,y exclud$
  f ! def9i;n ( 8sci5tific rese>*0 3ta9$
  9 sec;n #bijj (! ,regul,ns4





                                     #ai
       ,pay;ts ,deducti# f ,9come    b#h
     (a ,=eign ,busi;s 7subp>agraph
       #bab7#a77d77;x77 7p>agraph
                  #cc7
    
#cc4 ,a pay;t : is made 0a resid5t (
  ,canada 6a non-resid5t p]son ) :om he
  is d1l+ at >m's l5g? & : is deducti# 9
  -put+ ! 9come (! pay] "u ,"p ;,i f a
  busi;s c>ri$ on 0hm 9 a c.try o!r ?an
  ,canada1 is exempt f )hold+ tax 6!
  ext5t x 0 s deducti# 7subp>agraph
  #bab7#a77d77;x774 ,= example1 a
  ,canadian resid5t :o makes a deducti#
  pay;t = sci5tific 9=m,n us$ 9 ! c\rse
  ( 8 busi;s 9 a =eign c.try w n h made
  a pay;t subject 6tax "u p>agraph
  #bab7#a77d71 ev5 if ! pay;t is bas$ ^u
  produc;n or sales4

        ,tax ,tr1ties 7p>agraphs
                #cd-cf7
    
#cd4 ,": a p]son makes "k-h[ or simil>
  pay;ts 6a resid5t (a c.try ) :     #bj
               ,,it-#cjc             c#h
  ,canada has a -preh5sive tax tr1ty 9
  =ce1 ! appropriate 3v5;n or agree;t %d
  2 3sult$ bo? z 6taxabil;y (! pay;ts &
  applica# rates4
#ce4 ,= example1 ": a ,u4,s4 5t]prise
  c>ries on ! busi;s 9 ,canada ( supply+
  -m]cial s]vices1 s* z adv]tis+1 b does
  n h a p]man5t e/abli%;t 9 ,canada1 )9
  ! m1n+ ( t t]m z def9$ 0! ,protocol 6!
  ,canada-,u4,s4 ,tax ,3v5;n1
--------------------------------------#i
  pay;ts = s* s]vices o!rwise taxa# "u
  subp>agraph #bab7#a77d77;iii7 >e
  exempt f ,canadian tax pursuant
  6,>ticle ;,i (! ,3v5;n4 ,h["e1 any
  pay;t t is a r5tal or royalty1 z def9$
  0! ,protocol1 does n =m "p ( 9du/rial
  or -m]cial pr(its & is subject
  6,canadian non-resid5t tax
  irrespective (! abs;e 9 ,canada (a
  p]man5t e/abli%;t4
#cf4 ,! agree;t )! ,unit$ ,k+dom
  provides ano!r example4 ,t agree;t
  limits ! rate ( tax on royalty     #ba
               ,,it-#cjc             a#i
  pay;ts n exempt$ "!9 6#aj@3p un.s !
  payee has a p]man5t e/abli%;t 9
  ,canada &! "r or prop]ty giv+ rise 6!
  pay;ts is e6ectively 3nect$ )a trade
  or busi;s c>ri$ on "? t p]man5t
  e/abli%;t4

















                                     #bb