Saskatchewan updates Information on Non-resident Contractor Bonding and Clearance Process

Saskatchewan recently released an Information Notice and updated several Information Bulletins to highlight the province's non-resident contractor bonding and clearance process. These new or revised publications are listed below: 

• Saskatchewan Information Notice 2019-01, “Bonding and Clearance Process and Ensuring Contractor Holds a Valid Licence”;
• Saskatchewan Information Bulletin PST-41, "Information for Cities, Towns, and Municipalities”;
• Saskatchewan Information Bulletin PST-59, “Information for the Mining Industry”;
• Saskatchewan Information Bulletin PST-12, “Information for Businesses Providing Services to Real Property”; and
• Saskatchewan Information Bulletin PST-38, “Information for Non-resident Real Property and Service Contractors”.

Saskatchewan requires non-resident contractors consuming or using equipment during the completion of a real property contract to either:

• post a guarantee bond or cash deposit equivalent to 6% of the total contract amount with the Ministry of Finance, Revenue Division; or
• receive a clearance letter from the Ministry of Finance that can be provided to the contract principal.

The province also reminds contract principals that they have a responsibility to make sure the non-resident contractors they hire are conforming with this process. Where a contract principal does not obtain a clearance letter or proof of bonding from its contractor it is encouraged to withhold 6% (i.e., PST) of any amount invoiced by the contractor.