Author Topic: Tax implications of working outside of Canada  (Read 1194 times)

goodtimesahead

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Tax implications of working outside of Canada
« on: July 30, 2021, 01:31:25 AM »
If I moved outside of Canada and became a non-resident of Canada - how would I be taxed if I worked for a Canadian company? Do non-resident employees of Canadian companies have to pay Canadian taxes?

nereo

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Re: Tax implications of working outside of Canada
« Reply #1 on: July 30, 2021, 04:05:07 AM »
It depends on where you are moving to, and what your salary will.  Canada has tax agreements with many different countries to limit double-taxation, but each has their own peculiarities so check first.  IN general though if you are working and living in another country (and meet the physical presence test) you will pay on earned income in that country, but not to Canada.  But if you still spend a substantial amount of time time in Canada you might have to pay taxes on foreign earned income (the logic being you are using Canadian infrastructure and services).

If you are working in the United States, be mindful that there’s additional income sharing between the countries under FACTA, which is designed to limit tax cheats.

Mighty Eyebrows

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Re: Tax implications of working outside of Canada
« Reply #2 on: July 30, 2021, 06:39:00 PM »
If I moved outside of Canada and became a non-resident of Canada - how would I be taxed if I worked for a Canadian company? Do non-resident employees of Canadian companies have to pay Canadian taxes?

It depends on whether you can document tax residency in another country:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

https://www.taxtips.ca/personaltax/resident-vs-non-resident-tax-status.htm

« Last Edit: July 30, 2021, 06:40:50 PM by Mighty Eyebrows »