Canadian US Permanent Resident working for Canadian Company

d94 · Post by **d94** » Mon Aug 12, 2013 9:34 am

Hi, I'm a Canadian citizen living in the US as a permanent resident. After moving have have continued to work for the Cdn company I was with before the move. I am no longer an employee for the company I work as self-employed/contractor and I bill the Cdn company. I assume I only pay US tax in the situation I have described but my problem arises when I travel back to Canada to work form them for two weeks once a quarter or about 8 - 10 weeks a year.

1. what do i do in this situation

2. if i continue to invoice them as normal is there anything they need to do with regards to holding any taxes/cpp/ei back when they pay me for those two weeks?

thanks

nelsona · Post by **nelsona** » Mon Aug 12, 2013 11:10 am

1You are correct. you are a Cdn non-resident, with no permanent establishment in canada. You report the income soleely in US.

2. No, you are only liable for US self-employment tax. You are no longer under the CPP/EI regime.
If there is any tax witheld (remebr you are simply a contractor) you would get this back aty year end by filing a non-res tax return, and taking the treaty exemption.

d94 · Post by **d94** » Mon Aug 12, 2013 11:31 am

So for my 8 weeks in Canada I would have to report that as Cdn income though right? and file Cdn taxes for the amount I earned in Canada?

nelsona · Post by **nelsona** » Mon Aug 12, 2013 2:22 pm

No. You are a contractor, not an employye. You are billing the firm, and thus by treaty you are not liable for Cdn tax.As I said, teh firm *might* withhold taxes but you would get this back.DO NOT work as an employee while you are in canada. keep the same relationship you have now.

You are an american going up to work as a contrctor for eight weeks. That is textbook non-taxable in Canada.