FAQ - Canada - Royalties
1 – I receive royalties (patents, copyright etc.), where will they be taxed?
In accordance with article 12 of the tax treaty between France and Canada, royalties are normally taxable in the state of residence of the recipient. However, such royalties may also be taxed in the source State. In any event, the tax cannot exceed 10 % of the gross amount of the royalties paid when they are also taxed in the state of residence.
The general principle does not apply to fees as copyright and other similar remuneration rights. Indeed, paragraph 3 of the said article 12 provides for an exclusive taxation rule in the state of residence of the beneficial owner.
To claim treaty benefits, you should file French tax forms 5000 and 5003 downloadable on the tax pages of the Embassy of France in Washington’s website here