Ministry of
Finance
Revenue Division
2350 Albert Street
Regina, Sask.
S4P 4A6
Phone: 1-800-667-6102
Fax: (306) 798-3045
NON-RESIDENT CONTRACTORS
REQUEST FOR CONTRACT CLEARANCE
SUPPLEMENTARY WORKSHEETS
GENERAL INFORMATION
This form contains supplementary worksheets for the “Non-Resident Contractors – Request for Contract Clearance”.
In order to ensure taxes have been accounted for on the contract identified on that document and to ensure prompt
issuance of a clearance letter, please complete all sections of this form (A-F inclusive).
**Where similar records are available (i.e. job cost records, internal worksheets, etc), these may be provided in lieu of
completing each section of the form.**
If you have questions, or need assistance with completing this form, please call 1-800-667-6102, extension 0956.
For further information regarding reporting requirements and calculations for non-resident contractors, please refer to
Information Bulletin PST-38 located on our website at www.finance.gov.sk.ca/taxes/bulletins or refer to the detailed
information outlined on the succeeding pages. Contractors involved in manufacturing should refer to Information
Bulletin PST-37 – Information for Manufacturing Contractors.
Please note that penalty and interest will be applied to overdue tax owing.
Section 29 of The Provincial Sales Tax Act
Non-resident contractors must become registered with the Saskatchewan Ministry of Finance in order to report any tax
payable on materials, vehicles, tools, and equipment consumed or used in Saskatchewan.
Bonding
In accordance with Section 29 of The Provincial Sales Tax Act, a non-resident contractor working in Saskatchewan is
required to post a guarantee bond or cash deposit in an amount equivalent to 5% of the total contract amount. It is the
duty of the general contractor or principal to ensure that the non-resident contractor complies with this provision.
Failure to do so renders the general contractor or principal liable for any taxes which the non-resident contractor may
fail to remit.
Contract Clearance on Final Payment
Before the final payment is made on a contract, the sub-contractor should obtain a clearance letter from the Revenue
Division and provide a copy of the letter to the general contractor or principal. If the contractor has not complied with
the requirements of The Provincial Sales Tax Act, the general contractor or principal will be requested to withhold from
any hold back, an amount equal to the tax due, and remit this amount to the Revenue Division. In the event that a
non-resident contractor working in Saskatchewan does not comply with the Revenue Division, the general contractor
or principal will be held accountable for the taxes owing.
Supply Only Contracts
Note there is no provision under The Provincial Sales Tax Act to issue clearances for supply only contracts. If a
supplier invoices Saskatchewan PST on these types of contracts, tax is paid directly to them. If the supplier has not
invoiced PST, the purchaser is required to self-assess the tax on their returns.
SECTION A – Breakdown of Contract Costs
Page 2
Please provide a copy of the invoice, purchase order, or portion of the contract detailing the commencement and completion dates, scope of work, and contract value including change orders.
Please also complete the following table in order to provide a breakdown of the total costs for the contract.
Labour Costs
$
Subcontractor Costs
$
Material Costs
$
A more detailed breakdown of these costs should be provided in Sections B and C.
Other Costs -please specify
(eg. equipment rentals)
$
Total Costs
$
SECTION B – Sub-Contractor Information
Please complete the following table to list all subcontractors working on site as well as all lawyers, engineers, architects, and geo-science firms hired for the contract. If additional space is
needed, please use the back of this page or attach an additional list. Please note, copies of invoices may be requested for verification.
Name
Street Address
City, Prov
Postal Code
Type of Work Performed
Value of
Contract
Example Company
123 Street
Edmonton, AB
T5A 0A1
supply and install electrical
$25,000.00
Labour
Only
Labour
&
Material
Contract
Start Date
(mm/dd/yyyy)
Contract End
Date
(mm/dd/yyyy)
X
01/20/2010
10/30/2010
SECTION C – Calculation of PST due on Materials and Goods Consumed
Page 3
The PST due on all materials, supplies, and equipment repair parts purchased outside Saskatchewan and brought into the province must be remitted on the laid-down cost which includes
currency exchange, total freight charges to the final destination, customs and excise taxes and duties, but not the GST. The PST on all construction materials, supplies and equipment repair parts
purchased in Saskatchewan must be paid to the vendor at the time of purchase. Contractors involved in manufacturing should refer to Information Bulletin PST-37 – Information for
Manufacturing Contractors for information on how to calculate tax on the manufactured cost of materials.
Please complete the following table to account for all materials purchased for the contract. If additional space is needed, please use the back of the next page or attach an additional list.
Job cost records or similar accounting records may be provided in lieu of completing the table below. Please note copies of purchase invoices may be requested for verification.
Laid Down
Cost
PST Paid
To
Supplier?
wire
$500.00
Yes
-
Return
Period Tax
was SelfAssessed In
-
lumber, freight
$5,000.00
No
$250.00
Jan-Mar 2010
-
$3,000.00
No
-
-
$150.00
Invoice
Date
Invoice
Number
Supplier Name
1/30/2010
1234
Example Company A
Regina, SK
2/30/2010
4321
Example Company B
Edmonton, AB
3/30/2010
4322
Example Company B
Edmonton, AB
lumber, freight
Supplier Address
Description of Goods Purchased
Tax SelfAssessed
(5%)
Total Tax Payable
Tax Payable
(5%)
-
A
SECTION D – Calculation of PST due on Vehicles, Tools, and Equipment
Page 4
Non-resident contractors must report any PST payable on vehicles, tools, and equipment used in Saskatchewan. PST is calculated on these assets at a reduced rate using the methods described
below in order to account for the period of use in the province. Please refer to Subsection 5(9.1) of The Provincial Sales Tax Act on our website at www.finance.gov.sk.ca/taxes/pst or Information
Bulletin PST-38 – Non-Resident Contractors to obtain an explanation of each of the temporary use methods. An instruction sheet is also included at the end of this form which provides a detailed
explanation of the temporary use formulas. Please note that only one method should be chosen for each vehicle, tool, and piece of equipment.
If a vehicle is registered with the International Registration Program (IRP), no additional tax applies. However, please provide copies of the cab card for our records. For more information on IRP,
please refer to Information Bulletin PST-50 – Information for Interjurisdictional Carriers which is available on our website at www.finance.gov.sk.ca/taxes/bulletins or contact the appropriate
institution in your province.
If additional space is needed, please use the back of the page or attach an additional list. Please also provide a copy of the bill of sale and/or lease or rental agreement for each item listed.
Method 1 – Leased or Rented
This method should be used for all leased or rented equipment.
Year/Make/Model
Monthly
Lease
Amount
Date First
Entered
Province
(mm/dd/yyyy)
Date Exited
Province
(mm/dd/yyyy)
Number of Months
in Province
(Rounded up)
Total Taxable Value
([Monthly Lease Amount] X
[Number Months in
Province])
Return Period Tax
was Self-Assessed In
(Date or N/A)
Example S/N: XXXXX
2006 Ford F350
$ 1,000.00
01/01/2010
02/03/2010
2
$ 2,000.00
Jan-Mar 2010
If Tax was NOT
Self-Assessed,
Enter Tax Payable
([Total Taxable Value]
X 5%)
-
Example S/N: XXXXX
2007 Ford F350
$ 1,100.00
01/01/2010
02/03/2010
2
$ 2,200.00
N/A
$ 110.00
Unit
#
Serial #
1
2
Total Tax Payable
B
Calculation of PST due on Vehicles, Tools, and Equipment (continued)
Page 5
Method 2 – 1/3 Temporary Use (due each year the unit entered the province until fully tax paid)
Unit
#
Serial #
Year/Make/Model
Purchase
Amount (no
depreciation
allowed)
1
Example S/N: XXXXX
2006 Ford F350
$ 50,000.00
01/01/2010
02/03/2010
1
$ 16,666.67
$ 16,666.67
Jan-Mar 2010
If Tax was NOT
Self-Assessed,
Enter Tax Payable
([Total Taxable Value]
X 5%)
-
2
Example S/N: XXXXX
2007 Ford F350
$ 60,000.00
01/01/2010
02/03/2011
2
$ 20,000.00
$ 40,000.00
N/A
$ 2,000.00
Date First
Entered
Province
(mm/dd/yyyy)
Date Exited
Province
(mm/dd/yyyy)
Number of Years in
Province
(Rounded up)
Taxable Value per Year
([Purchase Amount]
divided by 3)
Total Taxable Value
([Taxable Value per
Year] X [Number Years
in Province])
Return Period Tax
was Self-Assessed
In (Date or N/A)
C
Total Tax Payable
Method 3 – Depreciated Cost (one time reduced payment)
Purchase
Date
(mm/dd/yyyy)
Date First
Entered
Province
(mm/dd/yyyy)
Number of
Months Between
Purchase and
Entry [Maximum
40 Months]
Depreciation
Percentage
(1.5% X [Number Months
Between Purchase and
Entry]) [Maximum 60%]
Dollar Value of
Depreciation
([Depreciation
Percentage] X
[Purchase Amount])
Taxable Value
([Purchase Amount]
- [Dollar Value of
Depreciation])
Return Period
Tax was SelfAssessed In
(Date or N/A)
If Tax was NOT
Self-Assessed,
Enter Tax Payable
([Total Taxable
Value] X 5%)
Unit #
Serial #
Make/Model
Purchase
Amount
1
Example S/N: XXXXX
2006 Ford F350
$ 50,000.00
04/09/2006
01/01/2010
40
60 %
$ 30,000.00
$ 20,000.00
Jan-Mar 2010
-
2
Example S/N: XXXXX
2007 Ford F350
$ 60,000.00
05/26/2008
01/01/2010
20
30 %
$ 18,000.00
$ 42,000.00
N/A
$ 2,100.00
Total Tax Payable
D
Calculation of PST due on Vehicles, Tools, and Equipment (continued)
Page 6
Method 4 – 1/36 Temporary Use (due each 30-day period the unit entered the province until fully tax paid)
This method is allowed only when provincial or state tax was already paid to another taxing jurisdiction. Harmonized Sales Tax (HST) is not a provincial sales tax; therefore this method is
not allowed if HST was paid on the vehicles, tools, and equipment. No depreciation is allowed under this method.
Year/Make/Model
Purchase
Amount (no
depreciation
allowed)
Date First
Entered
Province
(mm/dd/yyyy)
Date Exited
Province
(mm/dd/yyyy)
Number of Months
in Province
(Rounded up)
Taxable Value per
Month ([Purchase
Amount] divided by 36)
Total Taxable Value
([Taxable Value per
Month] X [Number
Months in Province])
Return Period Tax
was Self-Assessed
In (Date or N/A)
Example S/N: XXXXX
2006 Ford F350
$ 50,000.00
01/01/2010
02/03/2010
2
$ 1,388.89
$ 2,777.78
Jan-Mar 2010
If Tax was NOT
Self-Assessed,
Enter Tax Payable
([Total Taxable
Value] X 5%)
-
Example S/N: XXXXX
2007 Ford F350
$ 60,000.00
01/01/2010
02/03/2010
2
$ 1,666.67
$ 3,333.33
N/A
$ 166.67
Unit
#
Serial #
1
2
Total Tax Payable
E
SECTION E – Calculation of Total Provincial Sales Tax Payable
The following table should be completed by filling in the Total Tax Payable as calculated in Sections C and D.
A
Tax Payable on Materials & Goods Consumed (from Page 3)
-----
Vehicles, Tools, and Equipment:
B
C
D
E
Tax Payable on Leased or Rented Units (from Page 4)
Tax Payable under the 1/3 Method (from Page 5)
Tax Payable under the Depreciated Cost Method (from Page 5)
Tax Payable under the 1/36 Method (from above)
Total PST Payable
Payment will be required prior to issuing a clearance letter.
Please note that penalty and interest will be applied to overdue tax owing.
Upon receipt of this form, you will be contacted to confirm the total PST payable.
SECTION F – Bulk Fuel Imported into Saskatchewan
Page 7
Please complete the following table to account for all bulk fuel purchased for the contract. If additional space is needed, please use the back of this page or attach an additional list. Job cost
records or similar accounting records may be provided in lieu of completing the table below. Please note copies of purchase invoices may be requested for verification.
If you require additional information regarding Saskatchewan Provincial Fuel Tax, please refer to Information Bulletin FT-1 located on our website at www.finance.gov.sk.ca/taxes/bulletins.
Invoice
Date
Invoice
Number
Supplier Name
Supplier Address
Type of Fuel Purchased
(i.e. gasoline, diesel, dyed diesel, etc)
Number of Litres
Purchased
SK Fuel Tax Paid
To Supplier?
Tax SelfAssessed
(15¢ per litre)
Tax Owing
(15¢ per litre)
10/30/2010
1234
Example Company C
Winnipeg, MB
diesel
10,000
No
-
$1,500
Fuel Tax Payable
Upon receipt of this form, you will be contacted to confirm the total amount of Saskatchewan Provincial Fuel Tax Payable. Penalty and interest may be applied in some circumstances.
Revenue Division
2350 Albert Street
Regina, Sask.
S4P 4A6
Ministry of
Finance
NON-RESIDENT CONTRACTORS
INSTRUCTIONS FOR CALCULATIONS
OF PST DUE ON VEHICLES, TOOLS,
AND EQUIPMENT
Method 1 – Leased or Rented
Tax is due on the full monthly lease charge for each month or partial month the vehicles, tools, and equipment
were in the province. For rented equipment, tax is due on the total rental charge pertaining to the time the
vehicles, tools, and equipment were in the province.
Method 2 – 1/3 Temporary Use
Must be remitted each year the item enters the province until fully tax paid
Tax due on owned vehicles, tools, and equipment that enter the province can be calculated using the 1/3
Temporary Use method. No depreciation is allowed under this method.
The formula, which has been simplified in the enclosed worksheet, is as follows:
A = (P / 3) X T
Where
A is the taxable value that the tax rate of 5% applies to.
P is the purchase price before any deduction for trade-in.
T is the number of 365-day periods, including any portion of a 365-day period
(rounded up), that the vehicles, tools, and equipment were in Saskatchewan to a
maximum of 3 years (3 years results in full taxation).
Method 3 – Depreciated Cost
One time reduced payment
Assets are considered fully tax paid in Saskatchewan after tax is paid on the depreciated cost of the vehicles,
tools, and equipment. Therefore, there will be no further tax obligation on the specific owned vehicles, tools,
and equipment taxed under the depreciated cost method when brought into the province again in the future.
Depreciation at the rate of 1.5% of the purchase price is allowed for each month between the purchase date
and the first day the owned vehicles, tools, and equipment enter the province up to a maximum of 60%. This
method is allowed when provincial or state tax has already been paid to another taxing jurisdiction as well as
when provincial or state tax has not been paid to another taxing jurisdiction.
The formula, which has been simplified in the enclosed worksheet, is as follows:
A = P - (P X M X 1.5 %)
Where
A is the taxable value that the tax rate of 5% applies to.
P is the purchase price before any deduction for trade-in.
M is the number of months or part months from the date the vehicles, tools, and
equipment were purchased to the date of entry into Saskatchewan to a maximum of
40 months (40 months results in the maximum of 60% depreciation).
Page 8
Method 4 – 1/36 Temporary Use
Must be remitted each 30-day period the item enters the province until fully tax paid
This method is allowed only when provincial or state tax has already been paid to another taxing jurisdiction.
Harmonized Sales Tax is not a provincial sales tax. Therefore, this method is not allowed if Harmonized Sales
Tax was paid on the vehicles, tools, and equipment. No depreciation is allowed under this method.
The formula, which has been simplified in the enclosed worksheet, is as follows:
A = (P / 36) X T
Where
A is the taxable value that the tax rate of 5% applies to.
P is the purchase price before any deduction for trade-in.
T is the number of 30-day periods, including any portion of a 30-day period (rounded up), that the vehicles,
tools, and equipment are in Saskatchewan to a maximum of 36 months (36 months results in full taxation).
Page 9