Is it possible to securitize leases or royalties cross-border without withholding tax?
Withholding tax continues to apply to rent and royalties (subject to existing domestic and treaty exemptions). However, it would be possible for Canadian leases or royalties to be transferred to a Canadian SPE, and for the SPE to fund the acquisition by issuing withholding tax-free notes to non-resident term investors or ABCP conduits. In adopting this structure, the Canadian SPE would need to carefully review its Canadian income tax position.
Related Questions
- How will cross-border loans benefit from the elimination of withholding tax on arms length interest payments?
- How do I apply for a possible reduction in the non-resident withholding tax, if I no longer live in Canada?
- Is it possible to securitize leases or royalties cross-border without withholding tax?
