Contract worker for US company working for India in Canada :)
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mr.preetsingh
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Being a PR, you can not work for a US Based Company. Only Citizens can. Unless NAFTA rules are changed.
If that US company has a company registered in Canada, you know you can always work for them.
Perhaps you got my question wrong. The contract is between me and the company based in US. My sole proprietorship is in India. Considering COVID where we are all working from home and unable to meet clients in India where Im based currently, is it possible for me to lets say do a WFH in Canada. What might be the tax / legal implications
mr.preetsingh
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Well you have to work on your Language then because you wrote "contract employee for a US company "... So I did not got your question wrong....
To answer your detailed question, it depends if you are getting paid in Indian Bank account. If its a yes, then there is no problem, you can keep paying taxes for India and can live in Canada.
mr.preetsingh
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Your company has not to worry about anything. However, once you are in Canada, you should work on your credit score. Which can only work if you are spending in Canada.
So there is nothing wrong in working for US company, getting paid in India and living in Canada
As a PR you would become a tax resident in Canada if you remain in Canada over 6 months so I disagree that you would not owe any taxes.
mr.preetsingh
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- Oct 26, 2017
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- App. Filed.......
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He is asking about working while in Canada so he will be making money. Even if he comes to Canada for 6 months he is still a tax resident and must file Canadian taxes and include all his international income.
Okay, now this is getting confusing. So, I am a contractor for a US company, getting paid in USD into my Indian bank account. The work Im doing is IT Product sales for Indian companies. And im based in India with a Canadian PR. Now, I come to Canada, working from home which will be a rented home, will be spending my CAD while in Canada and lets say flying back to India 1 week a month. Lets ignore the PR obligation for now. Now @canuck78 - you are right about me paying taxes for international income. So if it were a holiday in Canada for 6 months, would I still need to pay taxes for my USD remit into my Indian bank account ? What if I Uber in Canada over the weekend and pay my taxes only to that extent ? Wow! am i overcomplicating it ?
Yes you will need to pay income on your international income if you are a PR and spend at least 6 months in Canada. If you and your family live in Canada as PRs and have access to services like schooling, healthcare, general infrastructure, etc. of course you are expected to pay taxes on your international income. Plenty of people in Canada working for a US company on contract and they also need to pay taxes. If your families wants to give up their PRs then you wouldn’t have to pay taxes. As a PR you are not a visitor.
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If your main concern is about paying taxes and or being considered a resident in Canada for tax purposes , then renounce your PR, and do the work from India . Voila ! Problem solved
PR= Permanent “ Resident”
You’re not over complicating, however you want to become familiar with the above word “ Permanent Residence “, which you applied for ,and the obligations , one of those living and paying taxes to Canada ,that come with it.
@Copingwithlife - Pardon me for the delayed response. I am definitely not suggesting about tax avoidance, the least that i would do. My only question is do I need to declare my international income if I stay in Canada and what is the taxation impact since I would have also paid my taxes in India.
Why would you have to pay taxes in India if you are working for a US company and living in Canada?
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