US resident wanting to go work as contractor in Canada

pms151 · Post by **pms151** » Thu Sep 06, 2012 7:12 pm

Hi Nelson,
I have an opportunity to go work in Canada as a seasonal worker for a company. Although I am a Canadian citizen, I will remain to be a resident of the US. They prefer to hire my position as a contractor. What would be the tax implications for both Canada and the US if I were to start my company as a Canadian or US company. Which option would work out for me best?
Thank you

nelsona · Post by **nelsona** » Fri Sep 07, 2012 11:53 am

It comes down to time spent in Canada: if you keep your presence to less than 183 nights, your contractor work will not be taxable in Canada.

It makes no sense to do this as a Cdn company.

There may be HST implications as well, depending on where you perform the work.

pms151 · Post by **pms151** » Fri Sep 28, 2012 9:51 pm

Thanks for the response.I should have been clearer in that the company who would be hiring me is a Canadian company. Does that make any difference? If not and I do work in Canada for less than 183 days, would I just get a letter from the CRA to give that company to ensure I dont pay withholding as a non-resident?

nelsona · Post by **nelsona** » Fri Sep 28, 2012 11:36 pm

You asked about forming a company. If you did it should be a US company.

If you are contracted by a Cdn firm, they should be able to avoid having to withhold tax, but you would at the very least get it back at year end.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cm ... r-eng.html