Nonresident Australian business in Canada

Non-resident businesses

The revenue canada website talks about an non-resident business. How do you form such a business or how do you get deemed a non resident business? I am a resident of australia and am interested in doing business in canada.


david ingram replies:

If you are a non-resident doing business in Canada, you are automatically a non-resident business.

You can operate as a proprietorship (simplest) or as a corporation.

If you are a proprietorship and do not maintain a fixed base in Canada, There is NO tax payable to Canada under Article XIV of the Australia / Canada Income Tax Convention. If you open an office or have a warehouse with employees, you ewoul dhave a fixed base and be taxable. In either case, you would need to file a Canadian return.

If you paid tax in case two, you would claim a foreign tax credit on your Austalian Tax Pack.

If your business is expected to gross over $30,000 per fiscal year in Canada, you would also have to register fro and collect GST of 6% on every sale. You might also need a provincial sales tax number and need to collect the provincial sales tax.

This is very basic, but you should get the idea.