Canadian contractor in Canada with US client. what forms?

fenrus · Post by **fenrus** » Wed Feb 24, 2010 7:06 pm

I am a software developer who is about to do some contract with with a US company. The company is asking me to fill out a W-8BEN form. The guy sounds unsure (as he originally told me to fill out a W9). Is it necessary to fill it or any other form out?

I am pretty sure I do not charge taxes nor am I taxed since I am Canadian working in Canada. My relationship with the company should just be another expense so it should just be a simple 1-1 relationship with no middleman or taxes.

I am a sole-proprietor with a Business Number. Any accurate information would be appreciated.

nelsona · Post by **nelsona** » Thu Feb 25, 2010 6:59 am

You aren't taxable, but IRS needs proof of why no taxes should be withheld.
W8-Ben is correct.

can80n · Post by **can80n** » Fri Sep 17, 2010 5:19 pm

Hello,

I am in a similar situation as fenrus below except that I am a dual US/Canadian Citizen. I'm living in Canada and have a Canadian registered sole proprietorship. My US client has sent me the W8-BEN. Do I fill out the W9 instead? Will it accomplish the same thing in that they will not withhold any US taxes?
I don't want them to withhold since I think this would mean I would have to wait until I file my 1040 next year to get the taxes back.

Thanks.

nelsona · Post by **nelsona** » Fri Sep 17, 2010 8:49 pm

W-9 is correct.

Remember though that this income will indeed be taxable in US, since it is not excludable by foreign earned income exclusion, and is considered US-sourced.

You will need to use the "re-sourced by treaty" provision of form 1116 to reduce the US tax.

can80n · Post by **can80n** » Sat Sep 18, 2010 6:20 am

Thanks, Nelsona!