Canadian Contractor for US company; am I a PSB?

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tommer
Posts: 2
Joined: Wed May 19, 2021 3:31 am

Canadian Contractor for US company; am I a PSB?

Post by tommer »

Hi,

I'm a Canadian citizen but have been living and working in the US under a TN visa for the last 5 years. I am relocating to Canada this summer, and will become an independent contractor contracted by my former employer. My employer mandated this, as they do not want to establish a tax presence in Canada.

I plan to incorporate, and am trying to figure out if my corporation will be considered a Personal Service Business by the CRA.

Some facts that I think are pertinent:

- I will provide my own equipment and working space (I'm a software engineer, and will work from home).
- I have a contract that explicitly states that I'm not an employee, and have no obligation to work any set hours.

I've spoken to an accountant who advised me that I'm likely *not* a PSB because my client is not a Canadian corporation, but I'm interested to hear if others agree with that assessment. I've so far failed to find discussion of a similar situation.

Thanks in advance for any insight you're able to offer.

Tom
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