Work remotely from Canada for US Employer

[matteosc]

Also, my interpretation of the 183 day rule is different than yours. If you don't meet "significant" or "secondary" ties to Canada (per the link I sent), then you might not be a resident of Canada for tax purposes, unless you spend 183+ days in Canada, then you become a resident for tax purposes. In other words, the 183 day test becomes the trump card. You see it the opposite way - that "significant" and "secondary" ties to the U.S. becomes the trump card.

Thanks for the information/contribution to the discussion. From my understanding, if it is only a temporary situation (if I spend less than 183 days in Canada, working for an US company), I am not a resident of Canada for tax purposes, right?

Also, does it matter for how long is the US job is "performed" on Canadian soil? Let's say that I work remotely for an US company under H1B in Canada for 2 months, should I declare that amount to CRA?

Thanks.

 

[jclarke99]

Are you counting cross-border commuting days (Canada to the U.S. for work) as NOT counting towards days in Canada. Per the link I sent, I don't think it works that way (i.e., they would count as days in Canada).

 

[matteosc]

Are you counting cross-border commuting days (Canada to the U.S. for work) as NOT counting towards days in Canada. Per the link I sent, I don't think it works that way (i.e., they would count as days in Canada).

No, I am considering a scenario in which I would work e.g. July to September in Canada for an US company. Considering staying in Canada the whole time, my questions are:
1) If during the 2020 I stay in Canada for less than 183 days (e.g.: from August to end of the year), am I considered as non-resident for tax purposes, regardless of the ties etc?
2) If during the 2020 I stay in Canada for more than 183 days (e.g.: from May to end of the year), but I work remotely for an US company for less than 183 days (e.g.: from May to September), am I a resident or a non-resident?

Does this clarify my questions?

Thanks for replying!

 

[jclarke99]

No, I am considering a scenario in which I would work e.g. July to September in Canada for an US company. Considering staying in Canada the whole time, my questions are:
1) If during the 2020 I stay in Canada for less than 183 days (e.g.: from August to end of the year), am I considered as non-resident for tax purposes, regardless of the ties etc?
2) If during the 2020 I stay in Canada for more than 183 days (e.g.: from May to end of the year), but I work remotely for an US company for less than 183 days (e.g.: from May to September), am I a resident or a non-resident?

Does this clarify my questions?

Thanks for replying!

Another source suggests looking at CRA form NR75 to help determine residency status for tax purposes. This sources states...
"It will give you insights into the fact pattern CRA looks at in determining tax residency in Canada. It is important to understand that it isn't any one factor that CRA looks at in determining residency (e.g., owning a home in Canada) but a pattern of facts painting a picture that your intention is to stay and live in Canada."

This source also recommends not actually filing from NR75 as it can be "invasive" and isn't legally required that you file it.

I don't know with certainty the answer to your questions, but I suspect that...
For #1 you still might be considered a resident for tax purposes (i.e., the less than 183 days may not be sufficient to be declared a non-resident for taxes)

For #2 I also doubt that this is sufficient to be declared a non-resident for tax purposes. Again, what is the pattern of your situation (personal and financial) painting a picture of whether you intend to stay and live in Canada?

Book source: The American in Canada by Brian D. Wruk

 

[moonlight86]

Also, my interpretation of the 183 day rule is different than yours. If you don't meet "significant" or "secondary" ties to Canada (per the link I sent), then you might not be a resident of Canada for tax purposes, unless you spend 183+ days in Canada, then you become a resident for tax purposes. In other words, the 183 day test becomes the trump card. You see it the opposite way - that "significant" and "secondary" ties to the U.S. becomes the trump card.

I did talk to a CPA and his comment was the financial tie overrides the 183-day rule, but I guess he meant that when a person owns a house in Canada but he is in Canada less than 183 days then he is a resident. For the reverse scenario, I tend to agree with you that if a person is in Canada for more than 183 days then he is considered a tax resident in Canada no matter what.

 

[matteosc]

Another source suggests looking at CRA form NR75 to help determine residency status for tax purposes. This sources states...
"It will give you insights into the fact pattern CRA looks at in determining tax residency in Canada. It is important to understand that it isn't any one factor that CRA looks at in determining residency (e.g., owning a home in Canada) but a pattern of facts painting a picture that your intention is to stay and live in Canada."

This source also recommends not actually filing from NR75 as it can be "invasive" and isn't legally required that you file it.

I don't know with certainty the answer to your questions, but I suspect that...
For #1 you still might be considered a resident for tax purposes (i.e., the less than 183 days may not be sufficient to be declared a non-resident for taxes)

For #2 I also doubt that this is sufficient to be declared a non-resident for tax purposes. Again, what is the pattern of your situation (personal and financial) painting a picture of whether you intend to stay and live in Canada?

Book source: The American in Canada by Brian D. Wruk

Thank you for your reply, it definitely helps. My situation at the moment is that I am still waiting for my application to be processed, so I may not have these issues at all (unfortunately). I am planning to work until the end of September for an US company and I am trying to figure out how it would work if I moved to Canada before then.

I did talk to a CPA and his comment was the financial tie overrides the 183-day rule, but I guess he meant that when a person owns a house in Canada but he is in Canada less than 183 days then he is a resident. For the reverse scenario, I tend to agree with you that if a person is in Canada for more than 183 days then he is considered a tax resident in Canada no matter what.

I understand that, also based on moonlight86 (thanks to you too) answer above, I may need to declare US income to CRA if I start renting apartments and opening bank accounts/credit cards. I am now trying to understand if I should report:
A) All the income since the activation of the PR status, even if still in US
B) Only the income from days on Canadian soil, including eventual weekends or short trips outside Canada and vacation days
C) Only the income from days on Canadian soil on which I actually worked (I have 2 months of vacation that I plan to take once there)

I hope this discussion is of some help for other users as well. And once more: thanks for your answers!

 

[jclarke99]

Thank you for your reply, it definitely helps. My situation at the moment is that I am still waiting for my application to be processed, so I may not have these issues at all (unfortunately). I am planning to work until the end of September for an US company and I am trying to figure out how it would work if I moved to Canada before then.



I understand that, also based on moonlight86 (thanks to you too) answer above, I may need to declare US income to CRA if I start renting apartments and opening bank accounts/credit cards. I am now trying to understand if I should report:
A) All the income since the activation of the PR status, even if still in US
B) Only the income from days on Canadian soil, including eventual weekends or short trips outside Canada and vacation days
C) Only the income from days on Canadian soil on which I actually worked (I have 2 months of vacation that I plan to take once there)

I hope this discussion is of some help for other users as well. And once more: thanks for your answers!

I too am in the early stages of the Permanent Resident application process. Again, I'm not 100% certain, but here are my suspicions...

A) You do not yet meet the Significant or Secondary tests for residency, nor do you meet any 183 day rule - so you are not yet a resident for tax purposes

B) Not sure what you mean by "Only the income". If you are deemed a resident of Canada for tax purposes, you are taxed on your worldwide income, so it doesn't matter whether or not the income is on Canadian soil. Of course, you'll use the tax treaty so that you are not double taxed. But you need to report all income.

C) Not sure I follow. Are you receiving income while on vacation? Nevertheless, see "B" above.

 

[matteosc]

I too am in the early stages of the Permanent Resident application process. Again, I'm not 100% certain, but here are my suspicions...

A) You do not yet meet the Significant or Secondary tests for residency, nor do you meet any 183 day rule - so you are not yet a resident for tax purposes

B) Not sure what you mean by "Only the income". If you are deemed a resident of Canada for tax purposes, you are taxed on your worldwide income, so it doesn't matter whether or not the income is on Canadian soil. Of course, you'll use the tax treaty so that you are not double taxed. But you need to report all income.

C) Not sure I follow. Are you receiving income while on vacation? Nevertheless, see "B" above.

Yes, that is what I suspected. I will probably report all the income from the moment I will effectively move to Canada (I will be paid during my vacation, so that would count as well). Not a big deal: as you said, double taxation will be avoided anyways.

I applied for PR more than 10 months ago, so I hope I am not too much in the "early stages", lol!

 

[matteosc]

[QUOTE = "zurai2, პოსტი: 9109630, წევრი: 1019485"]
მე ვკითხულობ და შურს თქვენ კარგ ქვეყნებში ცხოვრობთ, მე მაინც არ ვიღებ ვიზას
[/ QUOTE]
6 მე მაკრძალებენ აშშ-ს ვიზას 7 მე მაკრძალებენ კაბადის ვიზას

I am sorry, but you should really write in English to interact efficiently.

 

[zurai2]

[QUOTE = "matteosc, პოსტი: 9109644, წევრი: 972103"]
ბოდიში, მაგრამ თქვენ ნამდვილად უნდა დაწეროთ ინგლისურად, რომ ეფექტურად იმოქმედოთ.
[/ QUI am not granted a Canadian visa 6 I am denied

 

[matteosc]

[QUOTE = "matteosc, პოსტი: 9109644, წევრი: 972103"]
ბოდიში, მაგრამ თქვენ ნამდვილად უნდა დაწეროთ ინგლისურად, რომ ეფექტურად იმოქმედოთ.
[/ QUI am not granted a Canadian visa 6 I am denied

Well, if you really want to immigrate to Canada you can see it as having 6 years to get ready to it!
Some general advice:
1) Make yourself fluent in either English or French: that is very important
2) Browse this forum and the official website to learn what are your options
3) Make it happen: learn a language and get ready to IELTS/CELPIP and/or TEF. Make sure that you have the necessary education and work experience
4) Take one step at the time: depending on your situation you may want to start with a student visa or with a work holiday visa and start the immigration process from there.

 

[zurai2]

[QUOTE = "matteosc, პოსტი: 9109686, წევრი: 972103"]
კარგია, თუ ნამდვილად გსურთ კანადაში ემიგრაცია, ხედავთ, რომ მას 6 წელი აქვს, რომ მოემზადოს!
ზოგადი რჩევა:
1) კარგად ფლობთ ინგლისურ ან ფრანგულ ენებს: ეს ძალიან მნიშვნელოვანია
2) დაათვალიერეთ ეს ფორუმი და ოფიციალური ვებსაიტი, რომ გაიგოთ რა არის თქვენი ვარიანტები
3) გაითვალისწინეთ: ისწავლეთ ენა და მოემზადეთ IELTS / CELPIP და / ან TEF. დარწმუნდით, რომ გაქვთ აუცილებელი განათლება და სამუშაო გამოცდილება
4) ერთ ჯერზე გადადგი ნაბიჯი: შენი მდგომარეობიდან გამომდინარე შეიძლება დაგჭირდეს სტუდენტური ვიზა ან სამუშაო არდადეგების ვიზა და დაიწყო იქიდან საიმიგრაციო პროცესი.
[/ QUOTE]How can you help me please

 

[zurai2]

[QUOTE = "zurai2, პოსტი: 9109711, წევრი: 1019485"]
[QUOTE = "matteosc, პოსტი: 9109686, წევრი: 972103"]
კარგია, თუ უნდოდათ კანადაში ემიგრაცია, ნახეთ, რომ მას 6 წელი აქვს, რომ მოემზადოს!
ზოგადი რჩევა:
1) კარგად ფლობთ ინგლისურ ან ფრანგულ ენებს: ეს ძალიან მნიშვნელოვანია
2) დაათვალიერეთ ეს ფორუმი და ოფიციალური ვებსაიტი, რომ გაიგოთ თქვენი ვარიანტები
3) გაითვალისწინეთ: ისწავლეთ ენა და მოემზადეთ IELTS / CELPIP და / ან TEF. დარწმუნებული ვარ, რომ აუცილებელია აუცილებელი განათლება და სამუშაო გამოცდილება
4) ერთ ჯერზე გადაადგილებული ნაბიჯი: თქვენი მდგომარეობაობიდან გამომდინარე შეიძლება დაგჭირდეთ სტუდენტური ვიზა ან სამუშაო არდადეგების ვიზა და არც იქიდან საიმიგრაციო პროცესი.
[/ QUOTE] როგორ დამეხმარებით გთხოვთ
[/ QUOTE]
zurai5331@gmail.com

 

[canuck78]

Thank you for your reply, it definitely helps. My situation at the moment is that I am still waiting for my application to be processed, so I may not have these issues at all (unfortunately). I am planning to work until the end of September for an US company and I am trying to figure out how it would work if I moved to Canada before then.



I understand that, also based on moonlight86 (thanks to you too) answer above, I may need to declare US income to CRA if I start renting apartments and opening bank accounts/credit cards. I am now trying to understand if I should report:
A) All the income since the activation of the PR status, even if still in US
B) Only the income from days on Canadian soil, including eventual weekends or short trips outside Canada and vacation days
C) Only the income from days on Canadian soil on which I actually worked (I have 2 months of vacation that I plan to take once there)

I hope this discussion is of some help for other users as well. And once more: thanks for your answers!

Really depends on what presence or clients your US company has in Canada. With travel restrictions you may not be able to visit or move to Canada for some time. Most of PRs approved after March 2020 have not been able to move due travel restrictions.

 

[matteosc]

Really depends on what presence or clients your US company has in Canada. With travel restrictions you may not be able to visit or move to Canada for some time. Most of PRs approved after March 2020 have not been able to move due travel restrictions.

There are no travel restriction from US to Canada if you have a valid CoPR. This is why it is so annoying that they are working on applications and issuing CoPR to people that cannot travel while are ignoring applications of people that could. I am literally 2 hours from the border....