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
Canadian Contractor for US company; am I a PSB?
Moderator: Mark T Serbinski CA CPA