US Citizen Telecommuting from Canada - Ask an
David, your site has a wealth of information for the border crosser, but after hours of combing I haven't seen anything that applies to my particular situation. I am a US Citizen currently employed in Portland, OR by a US Company. Last week I gave notice, intending to move to Montreal to live with my girlfriend and seek work in Vermont. My company asked me to be creative and come up with a way to continue to work for them despite being on the other side of the continent. So I thought up two possible solutions: 1) They continue to employ me and I set up an office in Montreal to telecommute, returning to Portland every third month. 2) I become self-employed, they hire me as an independent contractor and I do computer work for them from Montreal, and eventually, from Vermont. >From reading the material on your site I have an inkling I will need to pay Canadian and U.S. tax in either situation. My main question is, do I need a Canadian Work Visa for either of these two situations? Question 2, Will my employer be subject to Canadian tax law under option 1? I appreciate your advise and please feel free to print this in your newsletter as you see fit. Regards, J ------------------------------------------------ david ingram replies: You need (or should have) a Canadian visa to live with your girlfriend. To be a visitor to Canada, you should still have a residence in the US. However, having a job in Portland and returning every third month for a bit would leave you looking like a visitor if you do it correctly. You would not set up an office without a visa, it is too public. You would just do as I am doing now, work from a computer in your living room, den or bedroom. You would need a Canadian Work visa if you set up an office or act as a self- employed person in Canada. If you just work as now a work visa is not an immediate necessity although I guess that the official answer is that you need a visa to come and live with your girlfriend. If you are just coming to visit for a month and not "live" with her, you do not need a working or a living visa, you are simply a visitor. Now to the tax issues. Tax law and immigration law are different. You can be working in Canada illegally and still have to pay tax. As soon as you spend more than 183 days sleeping in Canada, you become taxable on your world income retroactively to the first day. Taxation is (for the most part) dependent upon where you perform the work, not where it is paid from. So, as a resident of Quebec, commuting to Portland, you would need to file an Oregon non-resident return, a US federal return, a Canadian T1 and a Quebec Provincial return. Glad to look after them for you. I am not an immigration consultant for Quebec, but coincidently just came from meeting with Richard Kurland, one of Vancouver and Montreal's foremost (and most quoted) immigration people. I would be glad to arrange your introduction. If your company opened an office in Montreal and transferred you that would be one way but then they would have a Canadian Tax return liability. The simplest would be for you to become a freelancer and just work out of the living room while you are deciding your relationship. Then, if all goes well, you can be sponsored by your conjugal partner, common law wife, or legal wife if she decides to make an honest man out of you. You should likely buy an hour of my time with a phone consultation. $350 Cdn and likely cheap at twice the price for what you want to do. ====================== Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600. Old shows are archived at the site. This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate: multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada Mexico Great Britain the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc. income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of Alaska, Alabama, Arkansas, Arizona, California Denver Colorado, Connecticut, Delaware District of Columbia Miami Florida, Garland Georgia, Honolulu Hawaii, Idaho, Illinois, Indiana Des Moines Iowa Kansas Kentucky, Louisiana Bangor Maine Maryland Boston, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Paris, Rome, Sydney, Australia Hilton Pennsylvania, Rhode Island, Rockwall, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas Taxman and Tax Guru and wizzard wizard - David Ingram's US/Canada Services US/Canada/Mexico Tax Immigration & working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road (Personal residence by appointment only please) North Vancouver, BC, CANADA, V7N 3L7 Calls accepted from 10 AM to 10 PM 7 days a week Res (604) 980-3578 Cell (604) 657-8451 Bus (604) 980-0321 Fax (604) 980- 0325 davidingram at shaw.ca 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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20041005/7fc0f88c/attachment-0001.htm
What's Related