David,

I found your web site though Ozzie Jurock's site.
I've subscribed to your newsletter and have found the
questions and your detailed answers very informative.

I have a couple of questions, but will start with this
one.

As a US resident with an opportunity to consult in
Canada, what sort of tax issues do I need to deal
with?  Some of the work will actually be done in
Canada and some from down here in Phoenix.  I will be
invoicing for expenses (travel, etc to and from
Phoenix and Vancouver) as well as an hourly rate for
work performed.  From reading through some of the info
at the Canadian Gov tax site, it looks like I may have
to remit taxes monthly and possibly GST.  Any further
info would be useful.

Sincerely,

CXXX XXXXXXX


 

ingram replies:

 

First I have to ask, do you have a working visa?  If not, we can help.

 

Secondly, you will be taxable in Canada if you earn over $10,000.  If you earn less than $10,000 for services performed "IN" Canada, you still have to file a tax return but it will be exempt  from Federal Tax under the Tax Treaty.

 

If you are self-employed and have NO FIXED base in Canada, you exempt all earnings from Canadian tax but you have to file the return to claim the exemption.

 

Canada, however is narrowing its definition of a fixed base and is now trying to tax you if you do work at your client's premises.

 

All your Canadian Earnings are still taxable in the US and Arizona.

 

Go to www.centa.com and READ THE SECTION ON US/Canada taxation. 

 

If you will be invoicing over $30,000 Canadian for work in Canada, you need a GST Number and account.

 

If you need help, we do phone consultations for $125.00 US per half hour.

David Ingram - www.centa.com
the CEN-TA Group
US / Canada / Mexico Income Tax and Working Visa Matters
108-100 Park Royal South
West Vancouver, BC, CANADA
V7T 1A2