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Posted by oprah.chopra on April 28, 2008, 2:37 pm
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I am a US based sole proprietor and have clients from all over the
world. Am I required to pay any Canadian income tax if most of my
income is earned in the USA? What I have some clients from Canada? Do
I owe any tax on the income I receive from them?
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Posted by Paul Thomas, CPA on April 28, 2008, 3:46 pm
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>I am a US based sole proprietor and have clients from all over the
> world. Am I required to pay any Canadian income tax if most of my
> income is earned in the USA? What I have some clients from Canada? Do
> I owe any tax on the income I receive from them?
You would have an issue with Canadian tax laws if you went there and
conducted business in one form or another.
So if all your work was performed here in the US, Canada is not in the
picture.
But if you went to Canada and met with the client, consulted there,
delivered equipment or materials, installed it.......etc......then Canada
might want a piece of the profits. Some places have a minimum amount of
time that you need to be there, called nexus, which creates a physical
attachment to the location at which point taxes apply. So consult with a
CPA, EA or Chartered Accountant (or whatever they are called in Canada)
about what triggers your tax liability there for income, payroll, sales,
etc.
--
Paul A. Thomas, CPA
Athens, Georgia
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by John Levine on April 28, 2008, 4:43 pm
Please log in for more thread options >I am a US based sole proprietor and have clients from all over the
>world. Am I required to pay any Canadian income tax if most of my
>income is earned in the USA? What I have some clients from Canada? Do
>I owe any tax on the income I receive from them?
The US and Canada have a tax treaty, so in general you only owe US tax
on your income if you work in the US, even if you spend a modest
amount of time in Canada meeting with the clients.
The answer would be different if you had an office in Canada or were
in the entertainment industry, which has special rules.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by parrisbraeside@yahoo.ca on April 29, 2008, 7:44 am
Please log in for more thread options On Apr 28, 2:37 pm, oprah.cho...@gmail.com wrote:
> I am a US based sole proprietor and have clients from all over the
> world. Am I required to pay any Canadian income tax if most of my
> income is earned in the USA? What I have some clients from Canada? Do
> I owe any tax on the income I receive from them?
As advised, it is unlike based on what you have said.
If you execute the contracts in Canada, the issue may be different.
However, the treaty allows you to earn a certain amount prior to a tax
obligation occurring.
I would like to ask if you received a Canadian tax slip like a T4A,
NR4, T5018, or the like?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Dick Adams on April 29, 2008, 8:30 am
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> I am a US based sole proprietor and have clients from all over the
> world. Am I required to pay any Canadian income tax if most of
> my income is earned in the USA? What I have some clients from
> Canada? Do I owe any tax on the income I receive from them?
If you have a Canadian office, yex.
If you or your employees (salaried or commissioned) do work in
Canada, it depends on the number of days per year, per two years,
and per three years.
And then there are several nebulous issues. Tax Treaties are NOT
Do-It-Yourself projects. You need a CPA, an Enrolled Agent, or a
Tax Attorney who is fluent when it comes to the US-Canadian Tax
Treaty.
Dick
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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