treaty provision exemption

Bubba Gums · Post by **Bubba Gums** » Fri Feb 27, 2015 8:01 pm

I am a US citizen employed at a Canadian University. I am a non-resident according to the treaty tie breaker rules. I am a scientist. My principal job duty is scientific research and furtherance of that enterprise. There is no trade or business associated with this work. It would appear that I can claim exemption from Canadian taxation based upon lack of a permanent establishment XV2b, V6e. I was not present in Canada more than 183 days in the year.

If this sounds correct, how would I file for this exemption? Taxes have been withheld as though i was a resident. What about CPP and EI?

Would I become liable for FICA / FUTA?

Could prior years foreign tax credits be rolled forward to reduce US tax liability?

Thanks.

nelsona · Post by **nelsona** » Sat Feb 28, 2015 9:51 am

If you income is from a CDn university, then it is taxable in Canada, regardless of how few days you spent in Canada.

Only income from US university, paid to you by them to work in Canada would be tax exempt.

There is a difference between being resident and being taxable. Youer income is employment income, not business income.