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Author Topic: Tax calculation while employed overseas and living in Canada??  (Read 344 times)
rrv
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« on: January 27, 2012, 05:19:26 am »

Hi all,

I will be migrating to Canada permanently in Feb and my company in Australia has offered me work from home option.
my question is being employed with an Ausi company and living in Canada, do I have to pay tax both in aus and cad?

Any help on the above is highly appreciated.

Thanks!
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Alabaman
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« Reply #1 on: January 30, 2012, 01:48:10 pm »

As far as Canada goes, yes you will have to pay tax in Canada. I am not sure how it would be calculated in Australia. I am guessing you'd have to claim some tax credits in one country for taxes already paid in the other country.
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Jonboy
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LANDED..........: 29-07-1999

« Reply #2 on: February 15, 2012, 06:29:35 pm »

As far as Canada goes, yes you will have to pay tax in Canada. I am not sure how it would be calculated in Australia. I am guessing you'd have to claim some tax credits in one country for taxes already paid in the other country.

This is right.  Foreign tax credits can be a real PITA if the CRA decides to investigate them (which they frequently do).  Especially with a country like Australia that does not have a calendar year tax year.

It is easier if the OP can get his "employer" to treat him as a self-employed contractor.
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