Among the most significant Canadian tax changes announced in the March 19, 2007 Federal Budget is the elimination of non-resident withholding tax on arm’s length and some non-arm’s length cross-border interest payments. These changes will be implemented by a new Protocol to the Canada-United States Income Tax Convention (the "Canada-U.S. Tax Treaty") and a legislated withholding tax exemption in the Income Tax Act (Canada) (the "Act"). These changes and their implications are described in this bulletin.

type Tax Law Bulletin - April 2007 - Canada to Eliminate Interest Withholding Tax