Serbinski Accounting Firms

In other words would the following treaty exception apply if US company is essentially doing same type of business as Canadian resident is doing, but just sub-contracting you part of its work for the 5% commision? http://www.fin.gc.ca/treaties-conventions/usa_-eng.asp "7. A resident of a Contra...

Found something interesting:
http://www.internationallawoffice.com/n ... 247baba0f9
"Two basic types of permanent establishment are common under the treaty. The first type is a “fixed base of business through which the businessâ€￾ of the non-resident taxpayer is wholly or partly conducted, and includes especially a place of management, branch, office, factory, workshop or place of extraction of natural resources.(3) The second type, generally involving the activities of a dependent agent, is based on the existence of a “person acting in a contracting state on behalf of a resident of the other contracting state…if such person has, and habitually exercises in that state, an authority to conclude contracts in the nameâ€￾ of the non-resident taxpayer. Such a person will not be deemed to be a permanent establishment if the person is “broker, general commission agent or any other agent of independent status, provided that… [the agent is] acting in the ordinary course of [the agent’s] business".

So if let's say US Agent just acts on commision passing you contracts (sub-contracting to you the work) and withholding his interest of 5%, in my understanding this should not be considered permanent establishment, also given the fact that in such scenario US comany wouldn't have authority to conclude contracts in the nameâ€￾ of the non-resident taxpayer.

So if you work for Canadian company, and Canadian company has contract with US company - can (and should? or even must?) you obtain TN in such case? My understanding so far is all determined by work done as you explained above, so if Canadian company is sending you in US and getting paid for your wo...

Well, this will just add more headache paying taxes to US and then claiming foreign tax credit on the Canadian return. But at the end you'll end up with the same money in your pocket - correct?

Thanks - now I am getting closer to understanding the whole picture and requirements. So there is no need to mess with incorporating and being sole-proprietor (self-employed) with doing all paperwork under your personal name should be fine then. Right? Regarding client sponsorship vs agency - does t...

Thank you! 1. So you don't really need to setup Canadian corporation - right? Just a letter from US Company confirming it's going to pay you as individual (corporation?) for the services performed. 2. What needs to go into the letter from US Company? 3. Can it state 3 year term to get maximum TN ter...

http://www.grasmick.com/nafta.htm [i]"The TN applicant does not have to be an employee of the U.S. company on a strict "W-2 form" basis. Proof of prospective remuneration for the services rendered (e.g., a letter from the U.S. "employer") should be sufficient. (1) Documents ...

http://www.serbinski.com/working-in-usa/contractors.shtml [quote]"Therefore all self-employment income is exempt from U.S. taxation, irrespective of amount or time spent in the United States, so long as it is paid to them personally as self-employed individuals, unless the individual has a fixe...

Self-Employed person resident of Canada has a contract with US Company on per-hour basis only as sub-contractor and will be sent to various client sites in US when the actual job comes in.
I understand under the treaty he would be exempt from US taxes unless has fixed base in US. So wouldn’t such relationship with US employer be considered as having an office in US as per:
“The Canadian individual could be deemed to have a permanent establishment in the U.S. if: He has an office in the U.S.; or [b]He uses the services of an agent in the U.S. who has independent authority to enter into contracts on behalf of the individual.â€￾[/b]

Thank you!

Reading all the regulations I understand that getting TN as Self-Employed is tricky but still possible per this Quote:
[i]"The TN applicant does not have to be an employee of the U.S. company on a strict "W-2 form" basis. Proof of prospective remuneration for the services rendered (e.g., a letter from the U.S. "employer") should be sufficient.
(1) Documents Necessary to Prove Requirement
• Letter from U.S. employer stating the amount of the remuneration to be paid to the applicant "[/i]
Self-Employed person would have a contract with US Company on per-hour basis only as sub-contractor and will be sent to various client sites when the actual job comes in.
1. So is this possible in such scenario to have a letter from US employer explaining terms of business relationship and per-hour rate and then successfully apply for TN (assuming other requirements are met like education etc.)
2. Second question would be more about taxes but I would appreciate if somebody can clarify. I understand under the treaty he would be exempt from US taxes unless has fixed base in US. So wouldn’t such relationship with US employer be considered as having an office in US as per:
“The Canadian individual could be deemed to have a permanent establishment in the U.S. if: He has an office in the U.S.; or[b] He uses the services of an agent in the U.S. who has independent authority to enter into contracts on behalf of the individual.â€￾[/b]

Thank you!

Scenario: Canadian resident has his own corporation in Canada. This corporation has contract with US Company to perform services on various US client’s sites. Canadian resident travels frequently to US as an employee of Canadian company and remains in the US for total less than 183 days. I cannot ...