CDN residient selling to CDN and US Clients through WA Corp
Moderator: Mark T Serbinski CA CPA
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- Posts: 4
- Joined: Sun Sep 11, 2016 10:46 am
CDN residient selling to CDN and US Clients through WA Corp
Hi. I am a Canadian resident (dual-citizen) who has a WA state C Corp. My company has an office in the US and no office in Canada but I mainly use my home in BC to solicit US clients (via email) and perform work for them online. I now may have a Canadian client that has a virtual office in WA state but where all the employees are in BC. Can I avoid CDN withholding taxes by providing the services to the WA entity from my WA corporation even though I solicited the client from Canada?
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- Posts: 4
- Joined: Sun Sep 11, 2016 10:46 am
THe services are performed in Canada no matter what the set up is. The Clent is CND that has an off ice in WA but the contract was to provide them the service for their WA office . The withholding tax in Canada should not apply its simply a CND company paying another CND company your issue in in the US when you report this income to the US its income earned in Canada not the US any tax you pay to Canada you get a credit for it in the US.
JG
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- Posts: 4
- Joined: Sun Sep 11, 2016 10:46 am