Canadian Government Employee living in US, working in Canada -
Subject: Canadian Government Employee living in US, working in Canada
Expert: taxman@centa.com
Date: Tuesday January 30, 2007
Time: 03:11 PM -0500
QUESTION:
I am a Canadian government employee who works in Canada. I am applying for permenent resident status in the US, and will be moving there shortly. I was wondering what me tax obligations would be to either countries. I was told that as a government employee, I would not have to pay the US tax since my income comes from the Canadain government and the US has a tax treaty with Canada stating that each other cannot collect tax from the governemnts of the other country. I would like to know all the information before I make my move. I do not own any propery or investments in Canada, but I plan on keeping a Canadian bank account, as that is where my paycheque will go. I will have to cancel my health insurance and transfer my car over. Thanks you for any help on the situation.
-------------------------------
david ingram replies:
Article XIX of the US/Canada Income Tax Treaty exempts an employee of the Canadian Federal Government from paying tax to the US government on their government paycheque when the Canadian lives in the US for any reason and the same situation applies in reverse.
For instance, a female US citizen working as a US border guard and living in Canada with her Canadian husband and three Canadian born children does NOT pay one cent of tax to Canada on her US Homeland Security income. She qualifies for BC Medical and will even qualify for a Canadian old age pension at 65 but does not pay tax on her US government income. However, any interest, dividends, capital gains or rentals or author's royalties ARE taxed by Canada.
---------------------
This is the actual treaty article
Article XIX
Government
Service
Remuneration, other than a pension, paid by a Contracting State or a
political subdivision or local authority thereof to a citizen of that State in
respect of services rendered in the discharge of functions of a governmental
nature shall be taxable only in that State. However, the provisions of Article
XIV (Independent Personal Services), XV (Dependent Personal Services) or XVI
(Artistes and Athletes), as the case may be, shall apply, and the preceding
sentence shall not apply, to remuneration paid in respect of services rendered
in connection with a trade or business carried on by a Contracting State or a
political subdivision or local authority thereof
--------------------------------------------
----------------------------------------
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, 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, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston
Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton,
Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence,
Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince
Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin, Hamburg
Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing,
Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds,
Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson,
Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh,
Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish,
Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia,
Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St
James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears,
Truro, Charlottetown, Summerside, Niagara Falls, income trust
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico, New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
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 - consultant - expert - advisor -advisors consultants - gurus - Paris Prague Moscow Berlin
What's Related