Freight tax

There is no income tax levied against the freight earnings derived from international transport activities of non-residential shipowners and/or operators. 



Bare Boat Hire
Payments made to non-residents are subject to an income tax of 25% of the gross hire paid or credited with respect to the time which the vessel is used in Canada1, unless the rate is reduced under a tax treaty.


Exemption Agreements
Residents of the following countries may benefit from double taxation agreements, which reduce the withholding tax as indicated.

Country Percentage Date signed Date of entry
into force
Date of effect
Algeria 15% 28/02/1999 26/12/2000 01/01/2001
Argentina 10% 29/04/1994 30/12/1994 01/01/1995
Armenia 10% 29/06/2004 29/12/2005 01/01/2006
Australia 10% 21/05/1980 29/04/1981 01/01/1976
Austria 10% 09/12/1976 17/02/1981 01/01/1980
Azerbaijan 10% 07/09/2004 23/01/2006 01/01/2007
Bangladesh 10% 15/02/1982 18/01/1985 01/01/1982
Barbados 2 10% 22/01/1980 22/12/1980 01/01/1976
Belgium 10% 23/05/2002 06/10/2004 01/01/2004
Brazil 15% 04/06/1984 23/12/1985 01/01/1986
Bulgaria 10% 03/03/1999 25/10/2001 01/01/2002
Cameroon 15% 26/05/1982 16/06/1988 01/01/1988
Chile 10% 21/01/1998 28/10/1999 01/01/2000
China 3 10% 12/05/1986 29/12/1986 01/01/1987
China 4
10% 11/11/2012 29/10/2013 01/01/2014 
Colombia 10%  21/11/2008 12/06/2012 01/01/2013
Croatia 10% 09/12/1997 23/11/1999 01/01/2000
Cyprus 10% 02/05/1984 03/09/1985 01/01/1985
Czech Republic 10% 25/05/2001 28/05/2002 01/01/2003
Denmark 10% 17/09/1997 02/03/1998 01/01/1999
Dominican Republic 2 18% 06/08/1976 23/09/1977 01/01/1977
Ecuador 10% 28/06/2001 20/12/2001 01/01/2002
Egypt 15% 30/05/1983 02/10/1984 01/01/1985
Estonia 10% 02/06/1995 28/12/1995 01/01/1996
Finland 10% 20/07/2006 17/01/2007 01/01/2007
France 2 10% 02/05/1975 29/07/1976 01/01/1076
Gabon 10% 14/11/2002 22/12/2008 01/01/2009
Germany 10% 19/04/2001 28/03/2002 01/01/2001
Guyana 10% 15/10/1985 04/05/1987 01/01/1987
Hungary 10% 15/04/1992 01/10/1994 01/01/1995
Iceland 10% 19/06/1997 30/01/1998 01/01/1998
India 10% 11/01/1996 06/05/1997 01/01/1998
Indonesia 10% 16/01/1979 23/12/1980 01/01/1980
Ireland 10% 08/10/2003 12/04/2005 01/01/2006
Israel 2(Renegotiated) 15% 21/09/2016 21/12/2016 01/01/2017
Italy 10% 17/11/1977 24/12/1980 01/01/1980
Ivory Coast 10% 16/06/1983 19/12/1985 01/01/1986
Jamaica 12.5% 30/03/1978 02/04/1981 01/01/1977
Japan 2 10% 07/05/1986 14/11/1987 01/01/1988
Jordan 10% 06/09/1999 24/12/2000 01/01/2001
Kazakhstan 10% 25/09/1996 30/03/1998 01/01/1996
Kenya 2 15% 27/04/1983 08/01/1987 01/01/1987
Korea, Republic of 15% 05/09/2006 18/12/2006 01/01/2007
Kuwait 10% 28/01/2002 26/08/2003 01/01/2003
Kyrgyzstan 10% 04/06/1998 04/12/2000 01/02/2001
Latvia 10% 26/04/1995 12/12/1995 01/01/1996
Lithuania 10% 29/08/1996 12/12/1997 01/01/1998
Luxembourg   10/09/1999 17/10/2000 01/01/2001
Malaysia 15% 15/10/1976 12/12/1980 01/01/1980
Malta 10% 05/08/1986 20/05/1987 01/01/1987
Mexico 10% 12/09/2006 12/04/2007 01/01/2008
Moldova 10% 04/07/2002 13/12/2002 01/01/2003
Mongolia 10% 27/05/2002 20/12/2002 01/01/2003
Morocco 2 10% 22/12/1975 09/11/1978 01/01/1978
Namibia 10% 26/03/2010 19/06/2013 01/01/2014
Netherlands 10% 27/05/1986 21/08/1987 01/01/1987
New Zealand 15% 03/05/1980 29/05/1981 01/01/1976
Nigeria 2 12.5% 04/08/1992 16/11/1999 01/01/2000
Norway 10% 12/07/2002 19/1272002 01/01/2003
Oman 10% 30/06/2004 27/04/2005 01/01/2006
Pakistan 2 15% 25/02/1976 15/12/1977 01/01/1977
Papua New Guinea 10% 16/10/1987 21/12/1989 01/01/1990
Peru 15% 20/07/2001 17/03/2003 01/01/2004
Philippines 2 10% 11/03/1976 21/12/1977 01/01/1977
Poland 10% 04/05/1987 30/11/1989 01/01/1990
 Poland (Renegotiated) 10% 14/05/2012 30/10/2013 01/01/2014
Portugal 10% 14/06/1999 24/10/2001 01/01/2002
Romania 10% 08/04/2004 31/12/2004 01/01/2005
Russia 10% 05/10/1995 05/05/1997 01/01/1998
Senegal 15% 02/08/2001 07/10/2003 01/01/2004
Serbia 10% 27/04/2012 31/10/2013 01/01/2014 
Singapore 2 15% 06/03/1976 23/09/1977 01/01/1977
Slovak Republic 10% 22/05/2001 20/12/2001 01/01/2002
Slovenia 10% 15/09/2000 12/08/2002 01/01/2003
South Africa 10% 27/11/1995 30/04/1997 01/07/1997
Spain 2 10% 23/11/1976 06/12/1980 01/01/1980
Sri Lanka 2 10% 23/06/1982 09/06/1986 01/01/1986
Sweden 10% 27/08/1996 23/12/1997 01/01/1998
Switzerland 10% 05/05/1977 21/04/1998 01/01/1998
Tanzania 20% 15/12/1995 29/08/1991 01/01/1998
Thailand 15% 11/04/1984 16/07/1985 01/01/1985
Trinidad & Tobago 10% 11/09/1995 08/02/1996 01/04/1996
Tunisia 15% 11/02/1982 04/12/1984 01/01/1985
Turkey 10% 14/07/2009 04/05/2011 01/01/2012
Ukraine 10% 04/03/1996 29/04/1997 01/01/1998
United Arab Emirates 10% 09/06/2002 25/05/2004 01/01/2004
United Kingdom(Renegotiated) 10% 21/07/2014 21/12/2016 01/01/2017
United States 10% 26/09/1980 16/08/1984 01/10/1984
Uzbekistan 10% 17/06/1999 14/09/2000 01/01/2001
Venezuela 10% 10/07/2001 05/05/2004 01/01/2005
Vietnam 10% 14/11/1997 16/12/1998 01/01/1999
Zambia 2 15% 16/02/1984 28/12/1989 01/01/1989
Zimbabwe 10% 16/04/1992 15/12/1994 01/01/1995
 
Signed but not yet in force
Lebanon 10% 29/12/1998    
New Zealand (Renegotiated) 10%  03/05/2012    
 Madagascar    01/12/2016    
           
Under negotiation/re-negotiation
Australia        
China (Renegotiation) 3
       
Malaysia        
Netherlands        
         
Notes:        
           
1. The Canada Revenue Agency's Income Tax Interpretation Bulletin No. IT-494 dated 31 January 1983 (See related links below) provides guidance as to the term "Canada" and the departments method of calculating "time used in Canada".
   
2. This rate applies provided the payment is taxable in the country with which Canada has a tax convention; otherwise, the rate is 25%.

3. This treaty does not apply to residents of Hong Kong, SAR; Macau, SAR or the province of Taiwan.
   
4. This treaty applies to residents of Hong Kong, SAR.
 

 

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