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Question about working remotely for a US company in Ontario, Canada (I'm a Dual Citizen)

col127

Newbie
Jul 1, 2020
1
0
Hey everyone! Hope you're all doing well. I'm looking for some advice and resources.

Here's my situation: I'm a dual citizen of Canada and the US. I moved to the US in 2012 and have been here for over 8 years. I currently work for a US Company. I recently made a request to work remotely full-time from Canada (Toronto, Ontario) to take care of my mom.
Our fast food company opened up two franchise locations in Canada for the first time ever - one in 2019 and one in early 2020. Prior to opening in Canada, there was a lot of concerns around Permanent Establishment for our company in Canada. There were limitations in terms of how many of our US employees could work in Canada at any given time and they had to watch it.

We also have a Canadian ULC for our US company. There's one employee in that structure that was hired in March 2020.
I was hoping to keep my current role when going remote, in my current department. I guess I'd be really serving our US company and doing US work, not for the Canadian one.

I found out that internally, the US Company HR team doesn't think this is possible. I'm not sure what the roadblocks are. My boss said he believes it's bigger than a taxation issue and that it might have something to do with Permanent Establishment. They're going to external counsel for advice because they're trying to make this work.

This is completely new ground for my company so none of us know how this works.

I'm trying to learn more about this and was wondering if you had thoughts/advice or knew of people/companies I could talk to about this. I don't know if this is a tax lawyer, an immigration lawyer or something else?

Thanks for your thoughts! Surely working remote for a US company while being located in Canada could be a possibility? I don't see why it wouldn't work?
 

k.h.p.

VIP Member
Mar 1, 2019
7,803
1,693
Canada
Your situation is amazingly complex because you're a dual citizen, so you're not taking a job away from a Canadian. But if your corporate lawyers are concerned about permanently establishing you (?) or the business (?) in Canada given that it has a ULC doing work there, you may need to consult a lawyer on your own instead of random internet strangers on a forum. Having people move to Canada but working for the US company *while* having a Canadian ULC may look on paper that there is more establishment in Canada than just a branch.

Hopefully someone has a better answer for you!