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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14870
Experience:  15years with H & R Block. Divisional leader, Instructor
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My boyfriend and I (common law partners) are moving to Vancouver

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My boyfriend and I (common law partners) are moving to Vancouver end of May. My citizenship is Netherlands, his is the USA. I accepted a job in Vancouver, and have a work permit and SIN. I will pay my taxes in Canada.

He is a consultant and will work for 4 days a week in the US and 1 day in Canada (Vancouver), so he travels every week. We are not sure if he needs to pay taxes in Canada (obviously he will need to pay US taxes).

Is it possible that he does not have to pay Canadian taxes if he won't be in Canada for more than 183 days?
Any information on this topic is very welcome, as it is a little confusing to me.
Thanks!

Robin D :

Hello and thank you for using Just Answer,
As a non-resident of Canada, he will pay tax on income he receives from sources in Canada. The type of tax he pays and the requirement to file an income tax return depend on the type of income he receives.


Even if the payer deducts tax from his income or he pays an amount of tax during the year, hemay also have to file a Canadian income tax return to calculate his final tax obligation to Canada on income from employment in Canada.


 

Robin D :

He will receive a US foreign tax credit on the tax he pays to Canada because as a US citizen he will have to report all income on his US tax return.

Customer:

So, that means that he will have to fill in the Canadian tax forms anyway, even though his employer is in the US?

Robin D :

If he is employed in Canada and performing the services in Canada, yes.

Customer:

He is employed in the US, and strictly speaking, would perform the service for 1 day in the week in Canada

Customer:

Would it be different if he would not work in Canada at all (those Friday's that he would otherwise work at home in Vancouver?)

Robin D :

He is just working from home but not working for the company in Canada? If he does not work at all and is just visiting you in Canada then no he would have no tax obligation.

Customer:

Yes, the idea was the first, that he would fly in on Thursday nights, and work at home in Canada for his US company on Fridays

Robin D :

Also if he is telecommuting as opposed to be sent to Canada by the US company to "work" in Canada, he would not be taxed in Canada

Robin D :

Ok, it sounded at first like he was sent to Canada by his company

Customer:

Ok, that helps. His company office is in Seatlle.

Customer:

Is there anything else (tax-related) that he needs to file for going through customs?

Customer:

Because his company sends him emails about taxes in Canada, even if he flies there for 1 time. And he will be doing so every week from June on.

Robin D :

Customs is different than tax issues. His company may be looking at the "Doing Business in Canada" part of thetaxation.

Robin D :

Business income includes income from any activity you do for profit. For example, income from a service business is business income. However, business income does not include employment income.

Customer:

Alright, I guess we have to look into that then, but I can imagine that is not a question for a tax expert

Robin D :

If you mean the customes question, no, that is not tax.

Customer:

I see, so him working for the company at home (and not doing business) would not be business income

Robin D :

No, that would not be business income.

Robin D :

He is an employee of a US company.

Robin D :

The fact that he is visiting in Canada and doing some work for teh US company while there would not mean he is "working " in Canada or doing business.

Customer:

Ok, that sounds good. I think my question is answered. Thank you very much!

Robin D :

If teh company sent him to Canada and he was doing business for them in Canada, menaing he could not do the work anywhere but Canada

Robin D :

Your positive rating is always thanks enough.

If you could also participate in the very short survey that Just Answer will send you by e-mail I would appreciate that very much.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Customer:

Ok, I will

Customer:

can I still change the email address though?

Customer:

because otherwise, it goes to my boyfriends email

Robin D :

I do not know anything about your personal account. If they advised you could chnage the e-mail then I suppose that is fine.

Customer:

ok, I will ask him to forward the email to me, that will work too.

Robin D :

Customer Service would be best to ask about that, sorry

Robin D :

Good

Customer:

ok, thanks

Robin D :

You are most welcoem

Robin D :

welcome

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