Canadian with US GC working in Canada on a temp basis

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OttawaSenators
Posts: 57
Joined: Wed Dec 24, 2008 12:42 pm
Location: Arizona

Canadian with US GC working in Canada on a temp basis

Post by OttawaSenators »

I am a Canadian with GC and have been in the US for 14 years (non-resident for Canadian tax purposes). I am interviewing a new group at my current company and half of the team is in Vancouver, Canada. They like the fact that I can also work in Canada without the need for a work visa. I wonder what the tax implications are for the following scenarios:

1. If they send me up there for 2 years (max allowed on GC re-entry permit) and they put me on the Canadian payroll. So this will be with the intention to come back to US at the end of 2 years of course.

2. If they send me up for a few months of the year, do they still have to put me on the Canadian payroll? How would I file taxes in both countries?
Go Sens go!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

1. This will make you resident of Canada, and fully taxable in Canada on world income.
You will become a returning resident.
You probably cannot use this time towards US citizenship.

2. If you are there less than 183 days in the calendar year, you will remain non-resident. Of course you will owe Cdn and BC tax on the employment income (and EI and CPP) if on Cdn payroll, and these will all be used against the US tax on this income. You could ask to remain on US payroll for these short "secondments" in Canada and then make sure you are never in Canada more than 183 days in ANY 365-day rolling period.

If you are there slightly more than 183 days, you are considered a deemed resisnt subject to world wide taxation, but you could avail yourself of the treaty to claim US residence (if your family, etc were to remain behind in US). But that would be Iffy.

Try to stay less than 183 days (including visits to Canada at other times in year), and stay on US payroll.

make sure you get a good stipend for this inconvenience.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
OttawaSenators
Posts: 57
Joined: Wed Dec 24, 2008 12:42 pm
Location: Arizona

Post by OttawaSenators »

Once again, a great answer by nelsona! What would we do without you? Thank you!

I talked more to the manager of this new position and he made it clearer that it would be scenario 2 for less than 183 days while keeping me on US payroll. They're just excited they don't have to apply for some sort of work permit/visa as they do for Americans sent up to Vancouver. I don't know the equivalent of B1 or TN status for Americans going to Canada.
Go Sens go!
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