CDN residient selling to CDN and US Clients through WA Corp

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hayley7699
Posts: 4
Joined: Sun Sep 11, 2016 10:46 am

CDN residient selling to CDN and US Clients through WA Corp

Post by hayley7699 »

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?
hayley7699
Posts: 4
Joined: Sun Sep 11, 2016 10:46 am

Post by hayley7699 »

I should mention that I am physically in Canada more than half the year. I also am the only employee of my company and therefore have authority to sign commercial contracts, etc.
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

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
hayley7699
Posts: 4
Joined: Sun Sep 11, 2016 10:46 am

Post by hayley7699 »

Thanks for the response. As far as my other US clients (that don't have any presence in Canada), can I continue to provide services through my WA C Corp and not be considered to have a PE in Canada even though I am in Canada most of the time and performing services from my home in BC?
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