Hey can I work for an employer in the US on contract on Canadian PR ? If yes can experts share the details:
Do I need to have a Canadian company set up? I have an active bank account set up in US so can receive the USD but not sure about its legality.
Which tax one pays in this scenario : Canadian or US ?
I don’t have direct experience, but many people I know are working remotely from Canada for a US employer (note that they are present here with a PR, as you cannot work in US physically without valid US visa). Their companies had to either set up satellite offices in Canada, already had offices, or they are working as independent contractors (not a full time employee with benefits). All these 3 are legal methods as far as I am aware and taxation is simpler since it’s all Canadian taxes. I have also heard of people who have done neither of that but are still working for US employer. I don’t know about the legality of that from visa point of view but it complicates tax filing (for both employer and you). I would contact an immigration attorney/tax consultant to get details on the last option just to be 100% sure.
In most cases if you are getting paid here in Canada in CAD you simply have to file Canadian taxes. If you are paid in US accounts, you will have to file US taxes and claim tax credits for that income in Canada (you may get returns/will owe some taxes to CRS depending on your individual situation). Again. a cross-border tax accountant can give more information.
Thank you @avj - Can you please share more details on working as independent contractors - I believe one has to setup a company. If you are paid in USD (independent contractor) and you being in Canada on PR - how taxation will work? any pointers ?