Tax & Accounting Blog

New Canadian Withholding Tax Documentation Requirements

New Canadian Withholding Tax Documentation Requirements

The Canada Revenue Agency (CRA) has changed its procedures for determining whether non-residents can claim a reduced rate of withholding tax under a tax treaty. Background Canada imposes a 25% withholding tax on certain types of Canadian source income paid to nonresidents of Canada.  Residents of countries with which Canada has a treaty may be … Read More

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U.S. District Court Rules that under ERISA and U.S. v. Windsor, Same-Sex Surviving Spouse Receives Death Benefit from Qualified Plan

On July 29, the United States District Court for the Eastern District of Pennsylvania issued an order that that a same-sex surviving spouse was entitled to receive the “surviving spouse” death benefit under an employer’s qualified employee benefit plan. The court found that the United States Supreme Court’s decision in United States v. Windsor, declaring … Read More

Changes coming in tax treaty between the United States and Japan

Changes coming in tax treaty between the United States and Japan

A new protocol to the income tax treaty between the United States and Japan has been signed by representatives of both countries, but its provisions will not enter into force until both countries have completed ratification of the protocol.  It amends the tax treaty, which has been in effect since 2003, to update several provisions … Read More

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FATCA Final Regulations issued, provide rules for new tax documentation and withholding regime

The Final Regulations for Chapter 4 of the Internal Revenue Code, sections 1471 through 1474 known as the Foreign Account Tax Compliance Act or “FATCA,” have been issued. The official date of publication in the Federal Register is scheduled to be January 28, 2013. The IRS has made the complete text, TD 9610, available at … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 8 – Exempt Individuals

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 8 – Exempt Individuals

Exempt Individuals are exempt from counting U.S. days for purposes of determining substantial presence in the U.S., nothing more. They are not exempt from tax because of their status as Exempt Individuals, although such Exempt Individuals are frequently exempt from income tax under a Code or tax treaty provision. To avoid this confusion, the IRS … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 7 – Substantial Presence Test

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 7 – Substantial Presence Test

Foreign nationals who are not green card holders (also called nonimmigrants) who are substantially present in the U.S. over a period of years are also resident aliens. Nonimmigrants are substantially present if their countable U.S. days (including partial days) over three calendar years equal or exceed 183 days based on a formula. The 183-day formula … Read More