Tax issues for self-employed in Canada

[clare]

Hi,

I received very helpful replies when I last posted on this forum, so I was hoping you could help with another tax question I have.
I have just moved to Canada and will be considered tax resident for the part of the year from the date that I arrived.
I am going to be working part time as an employee for a Canadian organisation, but am also considering a short term independent contractor position for a non-Canadian.
The work (research/programming) would be done in Canada, although the person paying me is not in North America. The question is, do I need to do anything in particular (I've heard people talk about incorporating, registering for GST/HST etc), or can I just write this additional income down on my tax return next year and pay any tax that is due then?
If it makes a difference, the total income from this short term job would probably be less than $10,000.

Also, I am on an open work permit - I assume there is nothing that disallows me taking contract positions such as this?

Thanks for your help.

[JGCA]

You will report all your income to Canada ( worldwide) from date you arrived onwards, you also report all the income to IRS ( if you came from US) as you always do. You will claim tax credits to IRS for tax paid to Canada and/or earned income exclusion to exept this earned income from IRS taxation, depending on the length of stay in Canada, look up form 2555 IRS publication guide. Do not worry about incorporatrion if the amount is $ 10K simple take it as self employed business income and do not register fro GST HST you are under the threshold to be registered if your total income is under $30,000 as a self employed individual.