double taxed?
Moderator: Mark T Serbinski CA CPA
double taxed?
I am a Canadian citizen living in the US as a permanent resident. I work for a US Company that wants me to go to Canada to work on a project for about 8 months. I will keep my US residency and my pay will continue to be from the US company. I know I will be taxed in the US the same as I have been. Will I be taxed again in Canada? Can I avoid it?
Since you are maintaining US residence, and on temp assignment for a US company, you need to ensure that you are not present in canada for more than 183 days in the calendar year.
Keep strict count of your days, leeaving for weekends as often as you can.
If you were to delay the start of this project until say, July, then your days each year would not jeopardize your Cdn-tax exempt status.
If spending 183 days in canada is unavoidable, then you will need to file a non-resident tax return to report the wages you earned while in Canada, pay the tax in Canada, and then get credit in US. This will be a HUGE 'transfer' that you would undertake. Perhaps owing to canada with IRS owing you the same (or probably less).
You should have assurance from your firm tha, if you become liable in canada because of days, that they will cover it. this might make them reconsider timeing.
Keep strict count of your days, leeaving for weekends as often as you can.
If you were to delay the start of this project until say, July, then your days each year would not jeopardize your Cdn-tax exempt status.
If spending 183 days in canada is unavoidable, then you will need to file a non-resident tax return to report the wages you earned while in Canada, pay the tax in Canada, and then get credit in US. This will be a HUGE 'transfer' that you would undertake. Perhaps owing to canada with IRS owing you the same (or probably less).
You should have assurance from your firm tha, if you become liable in canada because of days, that they will cover it. this might make them reconsider timeing.
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