AVOIDING DOUBLE TAXATIONS

Where do you pay taxes if you work remotely?

According to the government of Canada’s website, your income tax obligations to Canada are based on your residency status. You need to know your residency status before you can know what your tax responsibilities and filing requirements to Canada are.

Your residency status for tax purposes is determined considering 2 factors: if you physically reside in Canada for more than 183 days each year or not, AND if you have residential ties in Canada such as real estate and personal property, dependants, Canadian driver’s license, Canadian health insurance, memberships to religious or social organizations.

The CRA has a form you can fill out and based on the information you provide, they will tell you what your tax responsibilities are in Canada: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/nr73/nr73-fill-s-17e.pdf

According to a recent poll over 60% of Canadians prefer a hybrid or remote work model, and about 75% of businesses offer their employees the choice to work from home partially or entirely. Due to this massive and rapid shift to a new approach to work, a lot of Canadians are confused about the tax implications of their remote work status, be that in another province or another country.