Hello,
I am a Canadian (Quebec) Sole Proprietor working on a contract from a US corporation. I do all the work out of Canada (no travel to US).
1. Do I need to fill in W8 form and if yes, then which one?
2. What form do I need to get from the customer company in order to file my taxes later?
3. Will I need to file US tax returns?
Thank you!
G
What W8 do I need to complete (if any)?
Moderator: Mark T Serbinski CA CPA
You are doing all your work from QC to the US client so this is considered CND sourced self employed income. Since it does not include US source income you do not need to file a W-8 BEN since income is not US source such as int or dividends. NOr does a W-9 apply since you are a foreigner this usually applies to self employed income but again you are considered CND sourced as long as you do not have a perm establishment in US or spend more than 183 days in any 12 month period.
Your US Payor may issue you a 1099Misc reporting all the income they gave you you do not file any US return just include it on your T1 and Quebec TP1 as self employed income subject to income tax, QPP, QHIP and FSS Health Tax on the QC return, even if you do not get a 1099misc from them you still need to put the income on your CND returns converted to CND $.
Your US Payor may issue you a 1099Misc reporting all the income they gave you you do not file any US return just include it on your T1 and Quebec TP1 as self employed income subject to income tax, QPP, QHIP and FSS Health Tax on the QC return, even if you do not get a 1099misc from them you still need to put the income on your CND returns converted to CND $.
JG