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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,manage;t or ,adm9i/r,n ,fees ,pd
  6,non-,resid5ts
,numb]3 ,,it-#dfh;,r
,date3 ,decemb] #bi1 #aihi
,ref];e3 ,p>agraph #bab7#a77a7 7,al
  ,sec;n #fg1 ,subsec;ns #fi7#b71
  #bab7#b7 & #bab7#d7 & p>agraph
  #bad7#c77a77

               ,applic,n
    
  ,? bullet9 replaces & c.els ,,it-#dfh
dat$ ,febru>y #b1 #aiha4 ,curr5t revi.ns
>e designat$ 0v]tical l9es4

                ,summ>y
    
  ,? bullet9 d1ls )! tax tr1t;t (
8manage;t or adm9i/r,n fees or        #a
              ,,it-#dfh;,r           a#a
*>ges0 pd 0,canadian pay]s 6non-
resid5ts4 ,x 4cusses ! applic,n ( )hold+
tax "u ,"p ,,xiii (! ,act 6s* pay;ts z
well z ! circum/.es "u : tax tr1ties may
result 9 s* pay;ts 2+ tr1t$ z 9come "u
,"p ;,i (! ,act r ?an 2+ subject 6,"p
,,xiii tax4

          ,4cus.n & ,9t]pret,n
            7p>agraphs #a-c7
    
#a4 ,p>agraph #bab7#a77a7 requires an
  9come tax ( #be p]c5t 6be pd on e am.t
  t is a manage;t or adm9i/r,n fee or
  *>ge pd or cr$it$ 7or deem$ 6h be5 pd
  or cr$it$7 6a non-resid5t 0a resid5t (
  ,canada4 ,h["e1 ! rate ( tax may 2
  subject 6reduc;n pursuant 6subsec;n
  #aj7#f7 (! ,9come ,tax ,applic,n
  ,rules1 #aiga &a tax tr1ty 2t ,canada
  &! c.try 9 : ! payee resides4
  ,subsec;n #bab7#d7 excludes c]ta9
  pay;ts1 4cuss$ 9 #g 2l1 f ! applic,n (
  p>agraph #bab7#a77a74               #b
              ,,it-#dfh;,r           b#a
#b4 ,manage;t or adm9i/r,n fees >e n
  specific,y cov]$ 9 mo/ (! tax tr1ties
  negotiat$ 2t ,canada & o!r c.tries4
  ,": ,canada has a tr1ty ) ano!r c.try
  b x 3ta9s no specific >ticle on
  manage;t or adm9i/r,n fees1 any s*
  fees pd 6a resid5t ( t c.try w1 6!
  ext5t !y >e r1sona#1 2 3sid]$ 6be
  cov]$ 0! tr1ty >ticle d1l+ ) busi;s
  79du/rial or -m]cial7 pr(its4 7,z not$
  9 #aa 2l1 ! unr1sona# por;n (a pay;t
  (a manage;t or adm9i/r,n fee may 2
  subject 6tax "u ,"p ,,xiii74 ,"u s*
  >ticles1 busi;s pr(its (a non-resid5t
  5t]prise >e exempt f ,canadian tax
  un.s !y >e attributa# 6a p]man5t
  e/abli%;t 9 ,canada "? : ! non-resid5t
  c>ries on busi;s 9 ,canada4 ,any
  pr(its s attributa# >e taxa# "u ,"p
  ;,i (! ,act4 ,": a tax tr1ty does
--------------------------------------#b
  3ta9 an >ticle on manage;t or
  adm9i/r,n fees1 s* fees w 2 tax$ "u ei
                                      #c
              ,,it-#dfh;,r           a#b
  ,"p ;,i or ,"p ,,xiii1 dep5d+ on !
  circum/.es z 4cuss$ 2l4
#c4 ,bas$ on ! -;ts 9 #b abv1 p>agraph
  #bab7#a77a7 (! ,act does n apply
  6pay;ts made 6a resid5t (a tr1ty c.try
  ": ! "picul> tr1ty ) ,canada
  7a7 does n 3ta9 a specific >ticle on
    manage;t or adm9i/r,n fees2 or
  7b7 does 3ta9 s* an >ticle b ! fees >e
    e6ectively 3nect$ )a p]man5t
    e/abli%;t 9 ,canada (! non-resid5t4
  
  ,": a tr1ty does 3ta9 a specific
  >ticle on manage;t or adm9i/r,n fees
  &! fees pd 6a resid5t (! tr1ty c.try
  >e n e6ectively 3nect$ )a p]man5t
  e/abli%;t or fix$ base 9 ,canada (!
  non-resid5t1 ! fees >e tax$ "u
  p>agraph #bab7#a77a7 &! #be p]c5t rate
  ( tax is reduc$ 6any l[] rate specifi$
  = s* fees 9 ! tr1ty >ticle4 7,in !
  case ( ,jamaica1 ref];e %d 2 made
  6,>ticle ,,xiii (! agree;t & p>agraphs
  #b & #g "!(74 ,a4i;n,y1 manage;t    #d
              ,,it-#dfh;,r           b#b
  or adm9i/r,n fees 7n exclud$ 0subsec;n
  #bab7#d7 z \tl9$ 9 #g 2l7 pd 6resid5ts
  ( non-tr1ty c.tries >e subject 6,"p
  ,,xiii tax "u p>agraph #bab7#a77a7
  un.s ! am.ts may r1sonably 2 attribut$
  6a busi;s c>ri$ on 0s* a non-resid5t
  "? a p]man5t e/abli%;t 9 ,canada4 ,!
  =ego+ -;ts ref]1 9 bo? tr1ty & non-
  tr1ty circum/.es1 6r1sona# manage;t or
  adm9i/r,n fees4 ,z reg>ds an unr1sona#
  por;n1 see #aa & #ab 2l4 ,! rema9d] (
  ? bullet9 is 9 two "ps2 #a7 ,"p ,,xiii
  ,tax ,3sid],ns & #b7 ,"p ;,i ,tax
  ,3sid],ns 7pay;ts 3sid]$ busi;s
  pr(its74 ,= a4i;nal 9=m,n on ! subject
  ( manage;t or adm9i/r,n fees or *>ges
  see p>agraphs #bd 6#cc ( ,9=m,n
  ,circul> #hg-b4

       ,"p ,,xiii ,tax ,3sid],ns
           7p>agraphs #d-aa7
    
#d4 ,ref] 6,9=m,n ,circul> #gf-ab;,r#d =
  applica# non-resid5t tax rates on   #e
              ,,it-#dfh;,r           c#b
  am.ts pd or cr$it$ 6resid5ts 9 tr1ty
  c.tries 3ta9+ a specific >ticle on
  manage;t or adm9i/r,n fees or *>ges4
  ,= non-tr1ty c.tries ! rate is #be
  p]c5t4 ,! m1n+ (! ^w 8cr$it$0 is
  4cuss$ 9 p>agraph #e ( ,9=m,n ,circul>
  #gg-af;,r#c4
--------------------------------------#c
#e4 ,a manage;t or adm9i/r,n fee or *>ge
  is n def9$ 9 ! ,act4 ,=! purposes (
  p>agraph #bab7#a77a7 ! ,de"p;t 3sid]s
  t ! t]m 8manage;t or adm9i/r,n0 g5],y
  9cludes ! func;ns ( plann+1 direc;n1
  3trol1 co-ord9,n1 sy/ems or o!r
  func;ns at a manag]ial level4 ,^!
  func;ns may 9volve s]vices = v>i\s
  de"p;ts (a busi;s s* z a3.t+ f9ancial1
  legal1 electronic data process+1
  employee rel,ns1 manage;t 3sult,n1
  lab\r negoti,ns1 tax,n1 etc4 relat+ 6!
  manage;t or adm9i/r,n4 ,x is n possi#
  6provide an all-9clusive def9i;n (
  manage;t fees 9 an 9t]pret,n bullet91
  & x is su7e/$ t ! abv -;ts 2 r1d    #f
              ,,it-#dfh;,r           a#c
  tgr )! -;ts 2l 9 ord] 6det]m9e :e!r an
  am.t pd or cr$it$ 6a non-resid5t 9 a
  "picul> set ( circum/.es 3/itutes a
  manage;t fee t is subject 6a non-
  resid5t tax "u p>agraph #bab7#a77a74
#f4 ,! det]m9,n ( :e!r a "picul> am.t pd
  or cr$it$ 6a non-resid5t = s]vices
  p]=m$ 3/itutes a manage;t or adm9i/r,n
  fee or *>ge %d 2 made on ! basis (!
  nature (! s]vices p]=m$4 ,if no
  id5tifia# s]vices h be5 p]=m$ = am.ts
  bill$ z manage;t or adm9i/r,n fees or
  *>ges1 see #aa 2l4 ,am.ts pd = s]vices
  actu,y p]=m$1 : may casu,y 2 describ$
  z manage;t fees b 9 sub/.e >e = "s?+
  else : c 2 id5tifi$1 w n 2 subject
  6non-resid5t tax "u p>agraph
  #bab7#a77a7 nor w !y 2 exclud$ f x
  0subsec;n #bab7#d74 ,s* am.ts may1
  h["e1 2 subject 6non-resid5t tax "u
  provi.ns ( ,"p ,,xiii o!r ?an p>agraph
  #bab7#a77a71 or ! am.ts may 2 taxa# "u
  ,"p ;,i4 ,= example1 a pay;t 6a non-
  resid5t =! use (a "r or 9v5;n1 or   #g
              ,,it-#dfh;,r           b#c
  = 9=m,n 3c]n+ -m]cial or sci5tific k
  may 2 subject 6non-resid5t tax "u
  p>agraph #bab7#a77d74 ,": ! ord9>y
  c\rse (! busi;s (a non-resid5t 9cludes
  ! s]vice ( provid+ manage;t advice 9
  ,canada1 a fee = s* s]vices may 2
  subject 6tax z 9come e>n$ 9 ,canada "u
  ,"p ;,i4 ,a sal>y pd or cr$it$ 6a non-
  resid5t p]son is n 3sid]$ a manage;t
  or adm9i/r,n fee or *>ge b x may1
  n"e!.s1 2 subject 6,"p ;,i tax4
#g4 ,subsec;n #bab7#d7 excludes f
  8manage;t or adm9i/r,n fee or *>ge01 =
  purposes ( p>agraph #bab7#a77a71 !
  foll[+ am.ts 6! ext5t t !y >e r1sona#
  9 ! circum/.es3
  7a7 an am.t pd or cr$it$ 6a non-
    resid5t =a s]vice p]=m$ provid$ t !
    s]vice 0 p]=m$ 9 ! ord9>y c\rse (a
    busi;s c>ri$ on 0! non-resid5t &!
    non-resid5t &! pay] 7 d1l+ ) ea* o!r
    at >m's l5g? at ! "t (! p]=m.e ( s*
    s]vice1 or
                                      #h
              ,,it-#dfh;,r           c#c
  7b7 an am.t pd or cr$it$ 6a non-
    resid5t provid$ t ! am.t 0 a
    reimburse;t (a specific exp5se
    9curr$ =! p]=m.e (a
--------------------------------------#d
    s]vice &! s]vice p]=m$ 0! non-
    resid5t 0 =! b5efit (! pay]4
#h4 ,! ,de"p;t 3sid]s t ! t]m 8a
  specific exp5se0 9 #g7b7 abv applies
  6a "picul> exp5se item or a por;n "!(1
  a sum ( s"eal exp5se items or a por;n
  (a -posite ( v>i\s 4t9ct exp5ses s* z
  ov]h1d exp5se 9clud+ r5t1 p[]1 h1t1
  sal>ies1 fr+e b5efits & o!r busi;s
  exp5ses4 ,a specific exp5se does n
  9clude depreci,n1 capital co/s1
  res]ves or unv\*]$ am.ts4 ,a specific
  exp5se is net1 af all applica# cr$its
  or refunds h be5 deduct$1 & is )\t any
  m>k-up or pr(it ele;t 6! non-resid5t4
  ,:ile only am.ts deducti# "u ! ,act w
  2 all[$ z deduc;ns 6! ,canadian pay] 9
  -put+ 9come1 ? factor is immat]ial 9
  det]m9+ :e!r an am.t repres5ts a    #i
              ,,it-#dfh;,r           a#d
  reimburse;t 6! non-resid5t (a specific
  exp5se = purposes ( #g7b7 abv4
#i4 ,= purposes ( #g7b7 abv1 a s]vice
  p]=m$ 0a non-resid5t wd n 2 3sid]$
  b5eficial 6! pay] if x 0 a duplic,n (
  s]vices alr provid$ 0! pay]'s [n
  p]sonnel4
#aj4 ,x is a "q ( fact :e!r an am.t pd
  or cr$it$ 6a non-resid5t is r1sona# 9
  ! circum/.es = purposes ( #g abv4 ,9
  mak+ s* a det]m9,n 3sid],n %d prim>ily
  2 giv5 6! quantum or am.t (! exclu.n
  s"\ 9 rel,n 6! s]vice p]=m$ &! b5efit
  deriv$ 0! pay]4 ,": an am.t pd or
  cr$it$ 6a non-resid5t is bas$ on an
  alloc,n or 4tribu;n ( c]ta9 *>ges or
  co/s am;g v>i\s de"p;ts1 bran*es or
  subsidi>y corpor,ns 79clud+ !
  ,canadian pay]71 x is important n only
  t ! exp5ses !mvs >e r1sona# b t !
  me?od or basis ( alloc,n or 4tribu;n
  is appropriate 6! ,canadian pay] &
  r1sona# 9 ! circum/.es4
                                     #aj
              ,,it-#dfh;,r           b#d
#aa4 ,if "s por;n (a manage;t or
  adm9i/r,n fee or *>ge _c 2 3sid]$
  r1sona# or if1 z not$ 9 #f abv1 no
  id5tifia# s]vices h be5 p]=m$ = am.ts
  bill$1 ! unr1sona# por;n & am.ts =
  unid5tifia# s]vices may 2 tax$ z deem$
  divid5ds4 7,? is pursuant 6subsec;ns
  #ae7#a7 or #ef7#b7 & #bab7#b7 &
  p>agraph #bad7#c77a7 (! ,act47

         ,"p ;,i ,tax ,3sid],ns
           7p>agraphs #ab-ac7
    
#ab4 ,": r1sona# manage;t or adm9i/r,n
  fees >e 3sid]$ 6be cov]$ 0a tr1ty
  >ticle d1l+ ) busi;s 79du/rial or
  -m]cial7 pr(its & s* pr(its >e n
  attributa# 6a p]man5t e/abli%;t 9
  ,canada "? : ! non-resid5t c>ries on
  busi;s 9 ,canada1 "! >e no ,canadian
  tax 3sequ;es 6! non-resid5t4 ,": s*
  pr(its >e attributa# 6or

                                     #aa
              ,,it-#dfh;,r            #e
  e6ectively 3nect$ )a p]man5t e/abli%;t
  9 ,canada1 h["e1 ! non-resid5t c>ry+
  on busi;s 9 ,canada is tr1t$ 9 ! same
  mann] z any o!r taxpay]1 i4e41 ,"p ;,i
  tax is exigi# on busi;s pr(its4 ,any
  manage;t or adm9i/r,n fees or *>ges1
  or por;ns "!(1 3sid]$ unr1sona# w 2
  4all[$ z an exp5se (! ,canadian pay]
  "u sec;n #fg or subsec;n #fi7#b74 ,9
  3sid]+ ! r1sona#;s (! fee or *>ge =
  purposes ( sec;n #fg & subsec;n
  #fi7#b7 ! ,de"p;t is prep>$ 6a3ept an
  alloc,n (! co/s1 direct & 9direct1
  r1sonably attributa# 6provid+ !
  relevant s]vices 6! ,canadian taxpay]4
  ,any m>k-up or pr(it ele;t wd 2
  appropriate only 9 c]ta9 circum/.es
  7see ,9=m,n ,circul> #hg-b74
#ac4 ,! curr5t v].n ( ,9t]pret,n
  ,bullet9 ,,it-#agg \tl9es ! g5]al
  pr9ciples = det]m9,n ( :e!r "! is a
  p]man5t e/abli%;t 9 ,canada4 ,h["e1
  s9ce ! def9i;n ( 8p]man5t e/abli%;t0
  may v>y f tr1ty 6tr1ty1 taxpay]s   #ab
              ,,it-#dfh;,r           a#e
  %d ref] 6! specific provi.ns (!
  relevant 9come tax tr1ty4





















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