Cross Border taxes query

R

rkmsnd007

Member
Hola all, I just received my TN visa and working Corp-to-Corp with a company in US soon. Let me explain my situation

My corporation is based in Ottawa. My TN visa is with a employer in US with whom I shall be working for the next 3 years for client projects and I do not have any offices in US.

I am not moving to US..shall be flying Monday-Thursday every week to New York. My billable hr rates would be wired to my Corp Business account in Canada every month from US.

I have filled up Form W-8BEN (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting) to claim US-Canada Tax Treaty Benefits.

How is the Canada and US taxes to be paid at the end of the year. A bit confused in this Cross Border tax query.

Cheers,
RKMSND
 
Do you need to fly every week back to Canada? any chance you can stay in USA.
If you have family (wife/kids) and property in Canada you will pay Canadian taxes for all your income from US.

I did this on my personal income tax by consultant when i moved from canada to US

You claim full REFUND from US IRS claiming that you will file fully in Canada, they may ask copy of Canadian tax return

OR

you claim whatever taxes you paid in US as deduction from Canadian taxes and you pay only the difference to CRA
say for e.g you paid tax on your US income approx. 1000. and tax on this US income as per Canadian CRA is 1200 dollars
then you deduct 1000 from that and pay only 200 to CRA. due to your CORPORATION taxes maybe less in US check with accountant.

I have read the forums on Serbinski.com they are VERY VERY informative. They do answer 'basic' questions.
rest is chargeable
 
RKMSND
From what you wrote it looks like self employment. I don't think self employment is allowed on TN. The arrangement of wiring money from US employer to your Canada corp fits more in definition of contractor not an 'employee'
 
Self-employment is allowed, as long as each 'client' gets a TN for the contractor, The term used in the nafta document implies self-sponsorship, which is not allow. Being paid corp-to-corp or by 1099 has been established as allowed 20 years ago.

That said, the post may not even need a TN, if they live in Canada, as they may -- if the work qualifies -- enter on B1 business visitor.

However ,a TN is completely justified in this case.
 
Yes..I am a Contractor and not an employee...Based on the NAFTA rules, I can only work with one Business entity in US and have a contract with them for the duration mentioned (and a TN for them). I am not allowed to work with other companies in US during this period.

If I change employers, I need to get a new TN visa.
 
This is from USCIS website where it clearly says self employment is not permitted.
You may be eligible for TN nonimmigrant status, if:

  • You are a citizen of Canada or Mexico;
  • Your profession qualifies under the regulations;
  • The position in the United States requires a NAFTA professional;
  • You have a prearranged full-time or part-time job with a U.S. employer (but not self-employment - see documentation required below); and
  • You have the qualifications to practice in the profession in question. https://www.uscis.gov/working-united-states/temporary-workers/tn-nafta-professionals. I am unable to find any USCIS guidance explicitly stating self employment is allowed. I believe you should take advise from knowledgeable immigration attorney whose expertise is in TN. H-1B & TN bears a similarity except TN is exclusively issued to Canadian & Mexican citizens whereas H-1B is for all other person citizens, of course Canadian & Mexican citizens are also eligible for H-1B's. You need to understand the payment from US corp is being sent to a Canadian corporation controlled by same person who intends to utilize TN which is construed as self employment (contractor)
 
Thanks for the quote -- already explained what they mean by this --- self-sponsoring.

Ask any of the 1000's who are here on TN as contractors, paid by 1099 -- some with multiple concurrent TNs.

Rest easy.
 
Hi rkmsnd
I am in a similar situation as you are.How was your experience in getting TN visa as contractor on the basis of your Canadian incorporation?What supporting documents officer asked for?Can you please guide me the tax exemption process as well which I need to submit to employer.
 
Just to correct rkmsnd, you can indeed have multiple contracts, since part-time arrangements are are possible.

Tax questions are best left to tax forums.serbinski.com
 
If I have a Canadian Corp and I am in a corp to corp arrangement with a US company, do I need to charge GST on my invoice for the services.
 
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