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PR working in Canada
- Thread starter AKMA
- Start date
AKMA,
How can you legally work in Canada without being a Permanent Resident of Canada or without a Work Visa/permit. What is your nationality? Something's not right. Do you get paid in US$ or c$? Will you be given a W2 or a T-4 for tax purposes? Do you have a SIN Number?
I have been paying US and Canadian taxes. The tax treaties between the US and Canada, does not permit double taxation. You first file your US Taxes, then file your Canadian. Go to Bank of Canada's web site and get the average exchange rate for 2002, to calculate your Canadian taxes. I can pretty much assure you that if your Income in the US is 70k, expect to pay around 19k to 25k in Canadian taxes. :=). You will fall under 29% tax bracket.
How can you legally work in Canada without being a Permanent Resident of Canada or without a Work Visa/permit. What is your nationality? Something's not right. Do you get paid in US$ or c$? Will you be given a W2 or a T-4 for tax purposes? Do you have a SIN Number?
I have been paying US and Canadian taxes. The tax treaties between the US and Canada, does not permit double taxation. You first file your US Taxes, then file your Canadian. Go to Bank of Canada's web site and get the average exchange rate for 2002, to calculate your Canadian taxes. I can pretty much assure you that if your Income in the US is 70k, expect to pay around 19k to 25k in Canadian taxes. :=). You will fall under 29% tax bracket.
clarify double taxes
can you guys please clarify the double taxation thing?
Lets say a Canadian PR is working from home in canada, for a US firm, and is being paid in USD. Lets say the US firm is duducting the US Federal taxes. Does he/she still have to pay the Canadian tax?
That's like 29% in US and 29% in canada. That means 60% goes in taxes. Is that the way it works out?
Or He just have to file the canadian taxes and mention that he allready paid tax in US , and not pay canadian tax.
Am confused.
can you guys please clarify the double taxation thing?
Lets say a Canadian PR is working from home in canada, for a US firm, and is being paid in USD. Lets say the US firm is duducting the US Federal taxes. Does he/she still have to pay the Canadian tax?
That's like 29% in US and 29% in canada. That means 60% goes in taxes. Is that the way it works out?
Or He just have to file the canadian taxes and mention that he allready paid tax in US , and not pay canadian tax.
Am confused.
Re: clarify double taxes
===============================Originally posted by aroshan
can you guys please clarify the double taxation thing?
Lets say a Canadian PR is working from home in canada, for a US firm, and is being paid in USD. Lets say the US firm is duducting the US Federal taxes. Does he/she still have to pay the Canadian tax?
(Yes you will have to pay Canadian taxes)
That's like 29% in US and 29% in canada. That means 60% goes in taxes. Is that the way it works out?
(I don't think it's 60%, but if you are in the IT field, you fall under the 29% tax bracket in Canada)
Or He just have to file the canadian taxes and mention that he allready paid tax in US , and not pay canadian tax.
You will pay the US taxes. Calculate the Canadian Taxes on your Gross Income (Canada does not recognize 401k's), minus the US taxes. Ofcourse if you have RRSP's and stuff like that you take those deductions, when you file your Canadian returns.
Make sure to enclose a copy of your 1040 and your W2's.
Also if you are single, and earn US$70000, and do not have any RRSP contributions, you will end up paying more than C$20,000 in canadian taxes.
Call the CCRA, and they will tell you the law. :=)
Am confused.