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Hello! I'm a U.S. citizen. I work for a U.S. defense contracting =
company called XXXXXXXXX in Virginia. However, I have been accepted to =
do graduate work at XXXXXXXXXXXX College in Vancouver and will move to =
Vancouver at the end of this year. I will obtain a student visa, and my =
wife (also a U.S. citizen) will likely obtain a work visa. Being on a =
student visa greatly restricts my ability to work in Canada. There =
appear to be a few exceptions (e.g. I can work for XXXXXXXXXXXX College, =
I can do pastoral work in a church, etc.), but I also found on =
http://www.cic.gc.ca/english/irpa/fs-workers.html under the definition =
of non-work activities:
- long-distance work (i.e. by telephone or Internet) by a visitor whose =
employer is outside of Canada.
I have been advised by XXXXXXXXXX College's international students' =
office that this means that I could telecommute for a U.S. company (e.g. =
XXXXXXXXX). XXXXXXXXXX would like to have me continue to do some work =
for them, and I would like to do the same. =20
There are two ways in which that could work: =20
The first option is that I could be a part-time employee of XXXXXXXXXX. =
I think I have the big picture figured out when it comes to taxes under =
this scenario. I file both to the U.S. and Canada, but under the tax =
treaty, I won't end up paying double the amount. =20
The second option is for me to be an independent consultant to =
XXXXXXXXX. XXXXXXXXX would prefer this, and it would probably be =
preferable to me, too, if it works out. This opens up some difficult =
legal and tax questions that I don't understand. I had a very small =
sole proprietorship on the side while in college (in the U.S.), so I'm =
familiar with how to fill out the U.S. tax forms. However, I don't know =
if this arrangement would be legal. For example, where would I get the =
business license? I assume it would be in the U.S., but I'd be doing =
the work in Vancouver, so where would I get the license? How do I then =
go about the tax process?
Thank you very much for your assistance.
Sincerely,
DXXXXXXXXX
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david ingram replies:
You have no problem working for Metron as a self-employed individual on =
a contract basisd and telecomputing back to Virginia. That operation is =
not defined as work under Canadian Law.
Metron would pay you as a contractor and at the most, would issue you a =
1099MISC at the end of a year.
As a US citizen, you and your wife will have to file a US return, but =
you would file a form 2555 with it and exempt up to $80,000 US of income =
earned in Canada. For your Canadian return, you would convert the =
Metron money to Canadian Dollars and fill out form T2124 and attach it =
to your T1-General Canadian Income Tax Return.
Yiou would NOT be paying any tax to the US because the money was not =
earned in the US.
If your wife has a University degree, she might fit into a NAFTA job =
category. Otherwise, she will have to get a work authorization on her =
own and without a degree, she might have trouble. If yo are dependent =
upon her income, she better start looking now. You can find out more =
about the NAFTA job descriptions (they ae the same for Mexico,. Canada =
and the USA) at www.centa.com. Click on Entering the USA for a full =
description of all the US Visas but pay particular attention to the jobs =
described under TN Visas. =20
For a "great" description of the tax forms you will have to file while =
living in Canada, goto www.centa.com and read the US/Canada taxation =
section (about 28 pages).
I am reproducing the NAFTA job desacrtiption list here:
TN - NAFTA Professional - (North America Free Trade Agreement) =
PROFESSIONAL BUSINESS PERSON
A professional is defined as a person with a minimum of a bachelor's =
degree, who applies for a position, which requires a degree as its =
minimum entry-level requirement unless otherwise specified.
This is the one we heard about in the news. To meet this classification =
which is unique to Canadians, Americans and Mexicans, you must have a =
bone fide job offer and all licenses and degrees in place for your =
profession.=20
CHECK LIST for the TN Visa
* An applicant for admission must establish Canadian citizenship
* The applicant must be entering the United States to engage in a =
profession or occupation at a professional level under NAFTA
* The applicant must be in possession of an offer or contract of =
employment from a United States employer stating:
1) The professional activity to be engaged in
2) Purpose of entry=20
3) Remuneration
4) That the position is temporary in nature and will not =
exceed one year (although it can be renewed)
* The applicant must provide documentation of his or her educational =
degree or professional qualifications
* The applicant must meet all licensing requirements
* Employment need not be full-time=20
* Permanent residence abroad is not a prerequisite
* Maximum period of admission of a TN is one year
* TN dependants accompanying the principal TN will be admitted under the =
"TD" classification for the same amount of time as the principal=20
* A $56 U.S. fee is required ($85.00 for renewal by mail)
* TN applicants are not permitted to enter as a professional to =
participate in any way to circumvent a strike
* SELF EMPLOYMENT IS NOT PERMISSIBLE
The following is a partial list of some who qualify under a TN Visa. =
Please note that extensive experience can equal a degree in many cases. =
All need a Bachelor or Baccalaureate degree unless otherwise noted. In =
some cases, 3 or 4 years of practical work in a discipline can count =
for one year of a University degree. Therefore if the University BA =
requires 3 years, you need 9 or 12 years of work experience to qualify. =
* Accountants - RIA or SIA or CPA or CGA or CMA or CA
** Actuaries (this is one of two classifications added since 1989)
* Agriculturalists
* Agronomists
* Animal Breeders
* Animal Scientists
* Apiculturist
* Architects - BA or state / provincial license
* Astronomers
* Biochemists
* Biologists
* Botanists
* Chemists
* Computer Systems Analyst - BA or Post-secondary Diploma or =
Post-secondary certificate and three years of practical experience. This =
does not get you to the USA, if your job is programming a computer. An =
Analyst might spend a day a month working on some modifications (in a =
testing mode for instance), but they better not be thought of as a =
"programmer" within the company.
**** Computer Software Engineer *** This is NOT here as an approved =
occupation. However, Jackie Bednarz (US head of the NAFTA Section 16 =
Working group in Washington stated specifically that if a recognized =
University was to offer the degree, she would consider computer software =
engineers under the ENGINEER classification when a recognized University =
granted the degree. My understanding is that SFU and McGill are now =
granting such degrees and that the Professional Engineers of British =
Columbia have recognized graduates as members of their professional =
society. Note that TC and TN's were being granted for this category on =
a sporadic basis until the INS realized that no such "official" degree =
existed.=20
Jackie Bednarz also pointed out (She was part of the original =
negotiating team when the original FTA (Free Trade Agreement) was being =
negotiated in 1985, 86, 87 and 88, there was no such thing as the =
INTERNET, "web masters" and "web sites". When negotiating the job =
titles, no thought was given to the computer revolution, other than the =
computer system analyst designation, which at the time meant a main =
frame analyst for a $1,000,000 computer.
(Thanks to Stuart Lynne and Richard Pitt) (www.fireplug.net), the CEN-TA =
Group was an official member of the internet as far back as 1986 and =
thanks to Bill Gates himself (he told me to use Microsoft Xenix as my =
operating system) and Radio Shack Model 16 computers, CEN-TA was using =
"email" between offices in Toronto, Ottawa and Vancouver as early as =
1983.=20
As another aside, Stuart Lynne and Richard Pitt went on to found WIMSEY, =
the FIRST ISP in CANADA. Bill Gates became quite famous as well. =20
* Dairy Scientists=20
* Dentists - DDS, DMD, or state / provincial license
* Dental Technicians
* Dietitian
* Disaster Relief Insurance Claim Specialists - (claims adjuster =
employed by an insurance company located in the territory of a party or =
an independent claims adjuster) - BA and successful completion of =
training in the appropriate areas of insurance adjustment pertaining to =
disaster relief claims; or, three years experience in claims adjustment =
and successful completion of training in the appropriate areas of =
insurance adjustment pertaining to disaster relief claims
* Doctors - (see physician further on)
* Economists
* Engineers - BA or state / provincial licensing
* Entomologists=20
* Epidemiologists
* Forester - BA or state / provincial licensing
* Geneticists=20
* Geochemist =20
* Geologist =20
* Geophysicists (including Oceanographer in the United States) =20
* Graphic Designer - BA or post-secondary diploma and three years =
experience.
* Hotel Managers - BA in hotel / restaurant management; or, =
post-secondary diploma or post-secondary certificate in hotel / =
restaurant management and three years experience in hotel / restaurant =
management
* Horticulturist
* Industrial Designer - BA or post-secondary diploma or post-secondary =
certificate and three years experience
* Interior Designer - BA or post-secondary diploma or post-secondary =
certificate and three years experience
* Journalist BA plus three years experience - (This category is no =
longer valid and has been left in to explain the circumstances. As I =
understand it, journalists in general took it as an insult that they had =
to have a BA degree, because, "most, if not all," of the best known =
journalists do not have a BA degree.)
* Land Surveyor - BA or state / provincial licenses
* Landscape Architect
* Lawyer (including notary in the Province of Quebec) - LLB, JD, LLL, =
BCL degree (five years); or membership in a state or provincial bar
* Librarians - MLS or BLS (for which another BA was a prerequisite)
* Management Consultants - BA; or equivalent professional experience as =
established by statement or professional credential attesting to five =
years experience as a management consultant, or five years experience in =
a field of specialty relating to the consulting agreement. I must make =
it clear here. A Management Consultant is NOT a manager. The surest =
way to lose your management consultant renewal is to show up at the =
border with a business card with the title General Manager, Western =
Region, or Human Resources Manager, or, or, or. A management consultant =
could consult with the actual sales manager about sales techniques or =
about selling into Canada. A management consultant could be advising =
the actual human resources manager in hiring techniques or even =
suggesting that one candidate is a better fit than another one. A =
management consultant can do market research, gather and assemble data =
and write a report to give to the manager. This is likely the hardest TN =
visa to get but is also a very important one when it comes to serving =
the needs of the US company.
Note that the management consultant does NOT need a degree, just five =
years experience. This is the perfect job description for the person =
with 23 years of job experience who has never gone through the formal =
process of getting a university degree in the discipline.
* Mathematician (including statistician)
* Medical Laboratory Technologist (Canada) / Medical Technologist (U.S.) =
- BA; or post-secondary diploma or post-secondary certificate and three =
years experience
* Meteorologist
* Nutritionist
* Occupational Therapist - BA; or state / provincial license
* Organic Chemist =20
* Pharmacologist (Pharmacist) - BA; or state / provincial license
* Physician - (teaching or research only), MD or state /provincial =
license. To work as MD, a doctor must pass his MLE (medical licensing =
exam), which has three, parts written over a year. After passing, he or =
she would enter the U.S. under an H-1A.
* Physicist (including oceanographer in Canada)
* Physiotherapist/Physical Therapist - BA; or state /provincial =
license
* Plant Breeder
** Plant Pathologists (This is one of two professions added since 1989) =
=20
* Poultry Scientist
* Professional (most recognized professions)
* Psychologists - state / provincial license
* Range Conservationist
* Recreational Therapist
* Registered Nurse - state / provincial license
* Research Assistant (working in post-secondary educational =
institution)
- * Scientific Technician - Possession of: (a) theoretical knowledge of =
any of the disciplines: agricultural sciences, astronomy, biology, =
chemistry, engineering, forestry, geology, geophysics, meteorology, or =
physics; and (b) the ability to solve practical problems in any of those =
disciplines, or the ability to apply principles of any of those =
disciplines to basic or applied research.
* Social Worker
* Soil Scientist
* Sylviculturist
* Teacher (College, Seminary, or University) (Post Secondary level only) =
* Technical Publication Writer - BA, or post-secondary diploma or =
post-secondary certificate, and three years experience
* Urban Planner (including geographer)
* Veterinarian
* Vocational Counselor
* Zoologist
Your wife should try filling out the self assesment questionnaire at:=20
http://www.cic.gc.ca/english/skilled/assess/Education.asp
She needs 75 points to qualify to come to Canada to work on her own.
Hoping this helps, I remain
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed =
information or consultation and is to be regarded only as general =
comment. Nothing in this message is or should be construed as advice =
in any particular circumstances. No contract exists between the reader =
and the author and any and all non-contractual duties are expressly =
denied. All readers should obtain formal advice from a competent and =
appropriately qualified legal practitioner or tax specialist in =
connection with personal or business affairs such as at www.centa.com. =
If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
=20
.
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