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Thread: Tax Law: Employed in Canada, working from different countries (remote)

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    Quote Originally Posted by zipdoa View Post
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    It's unfortunate that it's so complicated. I really want to spend some time with my family in Europe but I understand the big hurdle is taxes. I was just hoping that holding a French passport/being a dual citizen would make things a bit easier. I'll update this thread when I get an official word back from HR.
    I'm still not clear on what you're trying to do. Are you wanting to permanently move somewhere to travel remotely or travel to a new place every few months?

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    Most employers won't /can't /don't allow it except for extremely brief periods. There's tax and insurance issues for them too.
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Quote Originally Posted by ExtraSlow View Post
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    Most employers won't /can't /don't allow it except for extremely brief periods. There's tax and insurance issues for them too.
    If he keeps everything static in Canada and pay Canadian taxes that should be ok? But I understand the employer is having their dick out if they are accommodating it. Probably easier if Zipdoa is a contracter.

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    Quote Originally Posted by Xtrema View Post
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    If he keeps everything static in Canada and pay Canadian taxes that should be ok?
    This is basically totally wrong.

    Source: Me as an employer.

    Best course of action is to have the employee become a contractor.

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    Quote Originally Posted by Xtrema View Post
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    If he keeps everything static in Canada and pay Canadian taxes that should be ok?
    No, not at all. This creates liability for the employer in several ways, and may require them to falsify documents to "protect" the employee. WCB, Health Insurance, Life Insurance, Business Insurance, and probably a few other areas I can't think of. It's actually a massive deal.

    Quote Originally Posted by suntan View Post
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    This is basically totally wrong.

    Source: Me as an employer.

    Best course of action is to have the employee become a contractor.
    Yeah, if you are a contractor that explicitly works remotely, then the employer is protected. It's the employee who is incurring the liability for the items I listed above.
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Every country wants their pound of flesh in taxes. When it comes to income tax, if you perform work in a country, they will often want the tax for the income you generated in that country.

    Your employer will not want this liability of an employee, and if you convert to becoming a contractor, you still will likely be subject to non resident withholding tax-like laws in other countries too. While it shifts a lot of the responsibility to the contractor, the company hiring the contractor also has to deal with the CRA as well, so its not a cakewalk.

    I used to deal with contracting all the time with non-resident contractors who did work in Canada and dealing with non-resident withholding tax negotiations. For instance, if a contractor based in the US works in canada for 1 month in Canada on a 6 month contract, the CRA expects the company to withhold the NRWT and remit to CRA for that 1 month worked. They would do this by deducting 20% (or 25%, i cant recall off hand) of each invoice and send that to CRA. If the country and Canada have a tax treaty, then you can apply for an exemption. Otherwise, the company issues a T4A-NR at the end of the Feb for the contractor, the contract files it as part of their taxes in their home country (eg. with the IRS for the US), and if it is not subject to NRWT, then the person will get that refunded at tax time. The companies i've worked for didnt want to deal with filing exemptions and taking the risk on so they only did the withholding route.

    Compound this with each country has their own tax scheme, and every country has a different tax treaty with Canada, i'd recommend you talk or hire an accountant in both Canada and in the country you're going to who knows how to deal with this if you become a contractor.

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    Quote Originally Posted by davidI View Post
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    I'm still not clear on what you're trying to do. Are you wanting to permanently move somewhere to travel remotely or travel to a new place every few months?
    Live in France 4 months out of the year.

    Potentially add 4 months in USA as well.

    Last 4 in Canada.

    Canada/France back and forth exclusively if it reduces complexity.
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    Quote Originally Posted by zipdoa View Post
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    Potentially add 4 months in USA as well.
    If you do this 3 years in a row, you will be treading very close to triggering the "Substantial Presence Test" for the IRS which then subjects you to a lot more headache.

    https://expattaxprofessionals.com/re...-tax-residency

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    I think the correct way to do this would be incorporate in Canada and have your corp consult with your employer.

    Puts the liability and legwork on you to sort out where you are working from and the legalities. Next to no exposure for your employer who is just doing business with a Canadian corporation.
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by zipdoa View Post
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    Live in France 4 months out of the year.

    Potentially add 4 months in USA as well.

    Last 4 in Canada.

    Canada/France back and forth exclusively if it reduces complexity.
    If you enter France as a tourist and work from there remotely while continuing to remit and pay Canadian taxes I don't think you'd have any problems as long as your employer is okay with it.

    While lots of countries have laws where you technically shouldn't work remotely while in their borders, it's sort of a new grey area since most laws were developed before telecommuting was as easy as it is today and I've only heard of a few cases of anyone being caught out by the rules (and it's usually because they've pissed off the country in some other way and the work thing is used as the excuse to fine/deport them). As long as you're not relying on their healthcare, pension system, or stealing local jobs, most countries are happy to have your foreign 'tourist' dollars. That said, you'd be limited to the 90/180 day Shengen Area visa exemption.

    The US tends to question whether you're working a lot more given the business connections with Canada so I'd be a lot more careful with them. A few short business trips are probably fine but setting up for multiple months may raise some flags. Why would you want to spend the time in the US anyway? Why not Central America or Colombia or something?

    I always really like Eastern Europe (Romania/Bulgaria) and SE Asia for remote working (good Co-Working spots and cafes designed for it) but SE Asia won't be running normally again for a while it seems. Georgia is another great place that a lot of remote workers are setting up for the tax savings.

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    This guy knows the best spots.
    Quote Originally Posted by killramos View Post
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    I have a former colleague who as pretty much given up on Canada entirely and cycles between Russia and Panama. During the pandemic every time I've talked to him he's either just finished 9 or 18 holes of golf and was doing remote work until Russia opens the borders up. He comes back during harvest to help out his family but besides that he's living his best life being home based in central America
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    Meh, they all look like Jackie Chan to me
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    The USA/Canada/France triangle is primarily based on family/friend groups. I have a core group of friends in LA and half of my family lives in France.

    The other half is out in BC, so could feasibly leave Calgary for good without concern. Some homies here still but nobody seems to see each other anymore.

    RE: travelling through central america etc. - in a few years I'll do a grecy style trip.

    I'm just trying to spend more time with my people instead of my things.
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    a buddy was sent to Trinidad and Tobago for 6 weeks. His company claimed they over paid them from whatever tax obligations they had and wanted 10k back from each employee.

    It got super weird as they tried to tell them there were all sorts of complicated tax issues they needed to address for each employee. Some employees gave back some money while others rolled the dice and said they'll let their accountants figure it all out.

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    The USA is always the main problem. They're real bastards down there. When you cross the border you're going to have to tell them that you're there on business if you want to remain honest. Then they'll probably prevent you from crossing unless you already have a visa.

    I suppose countries where bribery is common could be problematic too.

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    Quote Originally Posted by suntan View Post
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    The USA is always the main problem. They're real bastards down there. When you cross the border you're going to have to tell them that you're there on business if you want to remain honest. Then they'll probably prevent you from crossing unless you already have a visa.

    I suppose countries where bribery is common could be problematic too.
    This is where I'm a little confused.

    Travelling to USA and claiming you're a visitor, but then playing some gigs as a musician or something - I get that you're breaking the law there. You're doing work that requires you to be in the USA to do the work.

    But lets say you run a landscaping company in Canada, and you manage your employees schedules online and maybe talk to a few clients on the phone - but the business remains in Canada and you could feasibly do that work from anywhere, it's not a requirement to be in any specific country - how is this breaking the same rules? Are you not allowed to manage your portfolio while travelling in other countries? What if you speculate on a stock and make $10k while you're travelling California? It's all very murky to me right now.

    Extended periods of time - this makes more sense. As a traveller/canadian, I'm limited to 6 months (minus a day?) in the USA in a calendar year.
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    Quote Originally Posted by zipdoa View Post
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    Extended periods of time - this makes more sense. As a traveller/canadian, I'm limited to 6 months (minus a day?) in the USA in a calendar year.
    Here is the rule. If you never set foot in the US in the 2 preceding years then it is 183 days... but
    (a) 31 days during the current calendar year; and (b) A total of 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only one-third the number of days of presence in the first preceding year, and only one-sixth the number of days in the second preceding year.
    Which is where you get to that rolling average of 4 months per year.

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    What I find funny is that the US tax rate is set to exceed Chinas tax rate next year (25%).
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    Quote Originally Posted by zipdoa View Post
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    This is where I'm a little confused.

    ...

    But lets say you run a landscaping company in Canada, and you manage your employees schedules online and maybe talk to a few clients on the phone - but the business remains in Canada and you could feasibly do that work from anywhere, it's not a requirement to be in any specific country - how is this breaking the same rules? Are you not allowed to manage your portfolio while travelling in other countries? What if you speculate on a stock and make $10k while you're travelling California? It's all very murky to me right now.

    ...
    I already showed my lack of knowledge in this topic but this was also my train of thought.

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    I can't even figure out Steam credit. Buy a digital virtual crate on Steam for 3 cents cad, sell it for $8 cad six years later. But its not really coming back to cad, because steam requires you to spend it in their store (can't pay the electricity bill with it) So technically its not digital cash like bitcoin would be because there is a way to convert bitcoin back into USD or cad to pay the bills. As far as I can tell, selling bitcoin is capital gains - but spending "Canadian tire money" or Steam credit is not because it is a closed environment?

    With that said is there anyone in Canada who considers Canadian tire money as taxable (on spend)?

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