United States Canada Income Tax Treaty

About publication 597 information on the united states canada income tax treaty this publication provides information on the income tax treaty between the united states and canada.

United states canada income tax treaty. It discusses a number of treaty provisions that often apply to u s. Income tax treaty and protocols 1 2 3 and 4 pdf 1980 technical explanation pdf 1980. This consolidated version of the canada united states convention with respect to taxes on income and on capital signed at washington on september 26 1980 as amended by the protocols signed on june 14 1983 march 28 1984 march 17 1995 and july 29 1997 is provided for convenience of reference only and has no official sanction. This is accomplished by providing a form called a w 8ben to the income provider which you sign and in which you promise to declare the u s.

This consolidated version of the canada united states convention with respect to taxes on income and on capital signed at washington on september 26 1980 as amended by the protocols signed on june 14 1983 march 28 1984 march 17 1995 july 29 1997 and september 21 2007 is provided for convenience of reference only and has no official sanction. Another way the united states canada income tax treaty is beneficial to canadians with income earned in the united states is to prevent amounts from being withheld for taxes. It has been amended by five protocols the most recent of which generally became effective jan uary 1 2009. The united states canada income tax treaty was signed on september 26 1980.

For further information on tax treaties refer also to the treasury department s tax treaty documents page. Convention on these forms of income do not exceed 15 percent united states citizens are subject to united states tax at normal progressive rates. Definition of us canada tax treaty initially formed in the year of 1980 this mutual taxation agreement limits the duties between canadian and us citizens and permanent residents that live in on the other side of the border. The united states canada income tax treaty was signed on september 26 1980.

Application of treaty p1. Under the new convention the united states agrees to give canada the primary right to any tax on such income in excess of 15 percent with the united states retaining only a residual right to tax. The united states canada income tax treaty was signed on september 26 1980. It has been amended by five protocols the most recent of which generally became effective january 1 2009.

In this publication the term article refers to the particular article of the treaty as amended. Income on your canadian tax return. Citizens or residents who may be liable for canadian tax.