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working from india for a canadian company

Discussion in 'Canadian Finance and Taxation' started by acerbico423, Sep 10, 2019.

  1. hi all,
    I want to know the logistics of working from India for a Canadian company. I am mostly interested in the taxation aspect. my client has agreed to let me work from India for a period of 4 to 6 months. do I pay taxes in India as an Indian resident or do I still pay taxes in Canada as a Canadian resident? I work via my incorporation and not as a direct employee to any Canadian company.
     
  2. #2 Bs65, Sep 11, 2019 at 12:32 AM at 12:32 AM
    Last edited: Sep 11, 2019 at 12:39 AM
    Others can comment given only speculation on my part but my guess would be you would still be considered tax resident in Canada and only a visitor in India on an extended vacation.

    As said only speculation on my part and per your other post on property ownership in India if that belongs to you no idea on the tax implications whether that influences anything .

    In your other threads you refer to applying for citizenship soon, so have you already applied given these 4-6 months will of course not count for physical presence at time of application.
     
  3. #3 canuck78, Sep 11, 2019 at 4:02 AM at 4:02 AM
    Last edited: Sep 11, 2019 at 4:19 AM
    You are also applying for PGP so must be earning living and earning your income in Canada. Slightly aggravating that you are trying to reduce your tax bill while applying for PGP.

    If you were not sponsoring your mother you would have to be out of Canada for over 6 months it would depend on whether you were a resident for tax purposes.
     
    Copingwithlife likes this.
  4. You have to file taxes based on your worldwide income. So unless you are no longer living in Canada and are no longer a resident for tax purposes - yes, you would still declare this income in your Canadian tax return and pay any applicable taxes.
     
  5. In addition, Canada and India have a double-taxation agreement - https://www.treaty-accord.gc.ca/text-texte.aspx?lang=eng&id=102409

    So you won't be taxed twice on the same income even if you have to file taxes in both countries - you'll pay the tax to one country, and the other country will consider that the tax is paid and won't charge you again.

    International taxation can be quite complex and you should consult a tax lawyer who has experience in this specific field (Canada - India tax). There should be plenty of such lawyers in any large Canadian city.
     

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