With respect to the non-resident who has a domestic business place and who has real estate income (excluding the case of capital gains from transferring land or building), the global taxation method is applied on the aggregate domestic resource income except for the retirement allowance, capital gains and timberland income. The latter incomes of a non-resident are taxed on the same basis as that applied too resident. With respect to the income of a non-resident who does not have a domestic business place, the withholding of taxation method is applied on each domestic source of income.
A non-resident is required to pay income tax at the domestic business place. In the case of a non-resident who has no domestic business place, income tax has to pay at the place where such income is derived. Income is classified according to the following: global income, retirement income, UAPITA gains, and income taxed separately by withholding. Global income is taxed at progressive rates while retirement income and capital gains are taxed separately at different rates.