Brits vs Canadians and taxes

I'm reading the thread about tips for UK people and someone posted they don't have to pay taxes on winnings. Is that different than Canadians? I thought several Canadians have posted that taxes are withheld and than you have to file a form to get the withholding back. I'm just curious about this.

 

Yes Joe you have it right. Different tax laws for different countries.

 

Yes, the tax treaty that Canada has with the USA allows the USA to withhold income taxes from Canadians for any income they make in the USA. Though Canada doesn't consider gambling winnings to be taxable income, the USA does and so thats why taxes are withheld.

With the UK the tax treaty they have with the USA doesn't allow the USA to withhold income taxes.

It is mainly like this because there are lots of people that live in Canada but work or own businesses in the USA so the treaty gives the US government a way to collect taxes from Canadians. While there will be people from the UK that work in the USA and all that, its just not going to be as common as Canadians working there.

 

Canadians have 30% of our taxable wins held back. We are required to have an ITIN (Individual Taxpayer Identity Number) and then file a 1040NR (non resident) to get our taxes back.

 

Thanks! Learn something new everyday, hopefully anyway!:evillaugh

 

As a Brit, I had a Casino complete a form to obtain an ITN form and now all I do is show it to the Handpay ( Assuming I win one ) and get the full amount of my win.