I am a Canadian citizen, with a Canadian sole proprietorship, doing online work as an independent contractor for a couple US companies. All work is done in Canada (haven't stepped foot inside the US) and no taxes have been withheld by the US companies.
As far as I understand it, I do not owe US tax in this situation.
I am wondering if I need to indicate to CRA in any way that some of my business income came from US companies even though the work was done in Canada. The income is being reported in Canadian dollars along with my other income for Canadian clients. As far as I can tell, I don't need to specify what part is from US companies because physically all the work was done in my province of residence. I'm not entirely confident I've got that right though so I'd welcome a more informed opinion.
I have searched past answers (thinking this situation is common these days) but have not found a similar question, at least not one using any keywords I can think of.
Canadian doing online work for US company as contractor
Moderator: Mark T Serbinski CA CPA
You have nothing to report in US. Your client could be in Moose Jaw or San Jose. Makes no difference -- except that you would not charge GST to your foreign contracts.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best