US-Canada tax protocol takes effect Jan. 1, providing mutual recognition of retirement plans

A protocol amending the US-Canada tax treaty allows mutual recognition of the other country's "qualifying retirement plans" for tax purposes, generally effective Jan. 1, 2009. The protocol eases costs and complications for firms employing people across the Canada-US border, regardless of whether the individual continues to participate in the home country pension plan or is covered by the pension of the host employment location. The protocol also addresses, among other things, salary and stock option income.  (Select News, 16 Dec 2008)

• Full text of news release (Treasury Dep't, 15 Dec 2008)
• Full text of fifth protocol to the US-Canada Income Tax Treaty of 1980 (PDF)
• Full text of technical explanation (Treasury Dep't) (PDF)

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