Client country · CAD
Your client is in Canada. Here's what to know.
For Filipino freelancers who live in the Philippines and do the work here.
The short answer
Canada's 15% Regulation 105 withholding only covers services provided in Canada, so work you do from the Philippines is generally paid without it.
Where the tax goes
Who taxes your pay from a client in Canada?
If you live in the Philippines and do the work here, the income is generally taxed in the Philippines.
Services you perform while physically in Canada are treated differently and can be taxed there.
Before you get paid
Will anything be withheld?
Regulation 105 requires payers to withhold 15% from payments to non-residents for services provided in Canada.
The CRA says this withholding is not required for services that are not provided in Canada. If a job is partly done in Canada, the payer and you should reasonably split the fee and apply withholding only to the Canadian part.
If some work is done in Canada and tax is withheld, the payer reports it on a T4A-NR slip. Keep it.
Paperwork
What clients commonly ask for
- An invoice for each payment stating that the services were performed in the Philippines.
- A contract or statement of work.
- A T4A-NR slip from the client, only if you did work in Canada.
Consumption tax
VAT / GST
Canada has GST/HST. Selling services to Canadian businesses from abroad generally does not require you to charge it, but there are registration rules for foreign suppliers of digital services to Canadian consumers. Check canada.ca if you sell to individuals.
Getting paid
Common ways clients pay
- Bank transfer in CAD or USD
- Wise (CAD account details)
- Payoneer
- PayPal
- Upwork, Fiverr or other platforms
Fees and exchange rates differ by provider and change often. Compare what lands in your account with the take-home calculator.
Common mix-ups
Myths vs facts
MythCanadian clients must always withhold 15% from foreign freelancers.
FactRegulation 105 applies to services provided in Canada. Remote work done from the Philippines is generally outside it.
MythI need a Canadian tax number to invoice a Canadian client.
FactGenerally not for remote work done from the Philippines. Your BIR registration is what matters.
Your checklist
Before your next Canadian payout
- BIR registration done
- Invoices state the work was done in the Philippines
- Any work days in Canada tracked separately
- Peso value and exchange-rate proof saved for each payout
- Tax option (8% or graduated) chosen on your first quarterly return
Same for every client
The Philippine side
- 1
Register with the BIR
Foreign clients do not register you. File Form 1901 (via ORUS or your RDO), get your Certificate of Registration, register your books and issue invoices.
- 2
You are taxed on worldwide income
Filipino citizens living in the Philippines are taxed on income from everywhere. Where the client is based does not remove your Philippine tax.
- 3
Pick 8% or graduated rates
If your gross is ₱3,000,000 or less and you are non-VAT, you can elect 8% (on gross above ₱250,000) instead of graduated rates plus 3% percentage tax. Elect it on your first quarterly return of the year.
- 4
Report in pesos and keep the rate
Record each payment in pesos on the day you receive or convert it, and keep proof of the exchange rate you used (platform statement, bank or e-wallet record). Use the same method all year.
- 5
Foreign tax withheld? Keep the proof
If tax was withheld abroad, Section 34(C) of the Tax Code may let you claim a foreign tax credit, subject to limits. Treaty relief may need extra paperwork, such as a BIR certificate of residence. Ask an accountant before relying on either.
Common questions
Will my Canadian client withhold 15%?
Generally not for work done entirely from the Philippines. Regulation 105 withholding applies to services provided in Canada.
What if I do part of the project in Canada?
The payer should reasonably split the fee and withhold 15% only on the part for services provided in Canada, and report it on a T4A-NR slip.
Do I still pay Philippine tax?
Yes. Report the income to the BIR and pay tax under the 8% option or graduated rates.
Tools for this
How much tax do I owe?
Self-Employed & Freelancer Tax Calculator
Compute your income tax under the 8% flat rate or graduated rates, with quarterly amounts and client-country warnings.
Open tool →
Upwork or Fiverr take-home?
Upwork & Fiverr Take-Home Calculator
From client rate to pesos in your account: platform fees, transfer fees, exchange rate and tax.
Open tool →
How much should I save each month?
Monthly Set-Aside Calculator
Know how much of each payout to set aside for tax and contributions so filing season is never a surprise.
Open tool →
Read next
Getting started
How to register as a freelancer with the BIR: a step-by-step guide for 2026
Registering with the BIR is the first step to freelancing legally in the Philippines. Here is what to prepare, how the process works online or at your RDO, and the mistakes that cost new freelancers money.
Read the guide →7 min read
Choosing your tax
8% flat rate vs graduated tax: which one actually saves you money as a Filipino freelancer?
The BIR gives Filipino freelancers a choice: pay 8% flat on gross income, or use the graduated tax table with optional deductions. The right answer depends on your income level and how many legitimate expenses you can document.
Read the guide →7 min read
Choosing your tax
How much should a Filipino freelancer set aside for taxes each month?
No one withholds tax from your freelance payouts, so a big bill can catch you off guard. Here is how to work out a set-aside amount, with a full ₱50,000-a-month example on both tax options.
Read the guide →7 min read
Sources: CRA: Withholding from non-residents providing services in Canada (IC75-6) · CRA: Rendering services in Canada · BIR: Philippines–Canada convention (PDF) · BIR: Philippine Double Taxation Agreements
Last checked October 19, 2026. General information, not tax advice. Rules change, and your situation may differ if you travel to work, hold another citizenship, or run a foreign company. Check with the client's tax team or an accountant.