Current Tax Treatment

Under the current rules, schedular payments received by non-resident entertainers tend to be subject to withholding tax. The withholding rates for schedular payments are provided for in schedule 4. Section RD of the ITA excludes payments to non-resident contractors from the definition of a schedular payment if they meet certain monetary or day-count thresholds.

IS 10/04 looks into the idea that while the term “non-resident contractor” is broad enough to include a “non-resident entertainer”, the 2 categories should be considered separately. This is due to non-resident entertainers being provided different tax treatment to non-resident contractors under both domestic and tax law.

Proposed Amendments

The goal of the proposed amendment is to clarify the status of non-resident entertainers and remove any ambiguity on their tax treatment. This will be done through altering the definition of “non-resident contractor” in the ITA to exclude non-resident entertainers. This will therefore clarify the provisions that apply to non-resident entertainers.

Effective Date

The proposed amendments will be effective from 1 April 2024.

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