CRA delays withholding tax deadline under Regulation 105 until 2027

The Canada Revenue Agency (CRA) has extended its administrative relief policy for Regulation 105. This follows a change in its stance on withholding tax requirements. Taxpayers now have more time to comply with the updated rules. The CRA initially introduced relief after revising its position on Regulation 105. It determined that reimbursements under these rules were technically subject to withholding tax. The original deadline for remitting this tax was set for 30 June 2026.

The agency has now pushed back the deadline. Taxpayers will not need to remit the withholding tax until 31 March 2027. The extension gives taxpayers additional months to meet the new withholding tax obligations. The CRA’s decision reflects its effort to ease compliance with the revised Regulation 105 policy.