Hi,
I have a few questions related to incorpurations in Ontario.
-In Ontario 25% of company directors should be canadian residents. In our case if we have 2 canadian residents I can name 6 non residents in articles of incorpuration form. Is this correct?
- Directors who are in Canada can get dividents of around 43000 CAD per anum and that is not taxable. What about non resident directors, can we also remit them around 43000 CAD per anum and it wont be taxable here in Canada ?
- How much tax is dedcucte on incopuration money after expenses, dividents, salaries etc have been deducted? I believe its 11% (Small business) ?
- If I work for a USA company remotely from Ontario, how much witholding tax applies, lets say I have decided a rate of 20 USD per hour from the company, then what percent of withholding tax should be added by that company to pay me?
- If the company from USA pays money through bank cheque on the name of director and not on company's name, can that be deposited in bank account of company? or it is complusory that payments should be received on the name of company.
canadian incorpuration working for usa firm
Moderator: Mark T Serbinski CA CPA
Just to correct your analysis, dividend income is not tax-free, it is taxed at lower rate due to the dividend tax credit, which could result -- IF ONE HAS NO OTHER INCOME -- in dividend income of 40-50K with no tax. light but important distinction.
US residents would have 5% (instead of 15%) withheld if they are owners of the firm. the y would of course report these dividends on their 1040.
There is no withholding tax on payments made to a Cdn corp from a US corp, for work performed in Canada.
I would suggest you see a tax attorney.
US residents would have 5% (instead of 15%) withheld if they are owners of the firm. the y would of course report these dividends on their 1040.
There is no withholding tax on payments made to a Cdn corp from a US corp, for work performed in Canada.
I would suggest you see a tax attorney.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]Just to correct your analysis, dividend income is not tax-free, it is taxed at lower rate due to the dividend tax credit, which could result -- IF ONE HAS NO OTHER INCOME -- in dividend income of 40-50K with no tax. light but important distinction.
US residents would have 5% (instead of 15%) withheld if they are owners of the firm. the y would of course report these dividends on their 1040.
There is no withholding tax on payments made to a Cdn corp from a US corp, for work performed in Canada.
I would suggest you see a tax attorney.[/quote]
Thankyou for the information.
They have given me a form to fill i.e. W-8BEN-E. Can you please provide me some kind of offical link where it says that in the cases like mine "US company will not pay any witholding tax", just want to make sure I am not stuck by the end of year with tax. Can I call Canada Revenue Agency to get such information?
US residents would have 5% (instead of 15%) withheld if they are owners of the firm. the y would of course report these dividends on their 1040.
There is no withholding tax on payments made to a Cdn corp from a US corp, for work performed in Canada.
I would suggest you see a tax attorney.[/quote]
Thankyou for the information.
They have given me a form to fill i.e. W-8BEN-E. Can you please provide me some kind of offical link where it says that in the cases like mine "US company will not pay any witholding tax", just want to make sure I am not stuck by the end of year with tax. Can I call Canada Revenue Agency to get such information?