US Citizen offered Consulting position at canadian client of US company

Question

2004 viewsMarch 29, 2018Cross Border Tax

0

Robert (anonymous) Posted March 26, 2018

Hi Madan – your videos and answers to other posters questions have been most informative.
I work for a multinational corp based out of India (I’m a US citizen working for the US corp)
I’m a Program Manager consultant in the IT consulting organization. They are offering a project based in Vancouver BC. I’m looking to keep my home in the US and will commute weekly (staying in hotels, Sunday night to Thursday afternoon) They initiated an intra company transfer to the Canadian based corp, but I’m concerned about the benefits and financial consequences of not working for the US company. I have 4 kids and a spouse that will continue to live in the US. Can you point out the things I should be concerned with and make sure it is spelled out in any agreement?

Regards
Robert

1 Answer

score 0 · Answer 1 · 2018-03-29T15:07:59+00:00

Hi Robert, based on what you’ve told me, you will be treated as a non-resident of Canada and will be taxable in Canada on Canadian income only. In addition, as a US citizen, you will be taxable on global income, including Canadian employment income. In order to avoid double taxation, you can claim a foreign tax credit for the Canadian taxes paid.

Since Canadian tax rates are normally higher than US rates, you should ask for a tax equalization payment from your employer so that you are not making less money after-tax.

US Citizen offered Consulting position at canadian client of US company

1 Answer

Mississauga's Thought Leader

REQUEST A FREE CONSULTATION

Pin It on Pinterest