2 ms·

This basically mirrors my experience with Canada. So don't play a rigged game, work remotely for foreign (US, Swiss) companies that pay more. Bonus points, beco

by eloff 8y ago

This basically mirrors my experience with Canada. So don't play a rigged game, work remotely for foreign (US, Swiss) companies that pay more. Bonus points, become non-resident in Canada, stay for the lovely summers in Vancouver and then bugger off to some tropical beach paradise for the other 6 months a year. You can legally pay nothing in income taxes when you do that (you won't get health care either, but at programmer salaries, self-insure with the difference, or take out private insurance.)

arcticbull 8y ago
yeah, not really re: the tax thing. I'd suggest taking that up with an accountant, or better yet an attorney specializing in international taxation - I am none of these. This is based on my experiences moving from the US to Canada, and further research I've done while traveling. Work is considered performed where you were physically when the work was done. This work requires a work visa (or citizenship), whether for Canada or for said tropical paradise, otherwise you're subject to deportation. Lying about the purpose of your trip to gain unlawful entry is a whole other matter. Compensation you were provided for the work you did is then taxed by the relevant authorities where you were physically when performing the work. This is why US companies are very careful to tell employees never to work when on vacation because if you did they'd have a lot of paperwork to fill in. If you're suggesting you can be a total non-resident of both countries by alternating between the two or splitting your time, luckily the tax authorities have thought of this too, I suggest you look up the definition of a Deemed Resident. Effectively, you are deemed a resident of the country to which you have the strongest connection. Or, you can be dual-status resident where you're a part year resident of one country and a part-year resident of another. Worst case they'll both deem you a resident and full on double-tax you if there's no treaty - but make no mistake you will pay taxes. Check out "What are residential ties?" [1] in the CRA handbook. Now, I'd love to be wrong of course. What I do know is that even if you're on vacation in the US, let's say on a B-2, it's a grey area to even contribute to open source projects. The US doesn't require that what you're doing be paid to be considered 'work'. [1] https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4058/non-residents-income-tax-2016.html#P83_5491 https://www.canada.ca/en/revenue-agency/services/forms-publi...
- elhudy 8y ago
  >This is why US companies are very careful to tell employees never to work when on vacation scoffs
  - arcticbull 8y ago
    To be clear, I mean international vacation, and also, I imagine that once they tell you the burden falls more on your shoulders than theirs, regardless of what they really want :P
    - GlenTheMachine 8y ago
      I attend international conferences for work. I also travel internationally to discuss business deals, exchange technical information, and on the rare occasion actually do engineering. There's never been a (weird) tax implication.
    - chadash 8y ago
      So you're saying that if I have a business meeting in Canada but love and work in the United States, that I owe taxes in Canada? I've never heard of this. In any case, I can't imagine Canada going after you for a few days of taxes and I can't imagine the US saying, oh you were in Canada... No problem, you don't owe taxes for those days. Can you provide some kind of source? I've worked for small companies and huge companies and I've never heard that.
      - arcticbull 8y ago
        Not business meetings, no. However thats not what OP was talking about. OP was talking about spending 6 months in Canada and 6 months abroad and paying taxes to nobody while continuing to work for a foreign employer the whole time. That's completely different. You do have to be careful, in the US it's not permitted to do anything other than business meetings on a B1. The UK is similar. If you do any engineering work at all you're in violation of your entry status. This is just the rules. If you do productive work and are renumerated for it by a foreign employer taxes may well be due. It doesn't often come up as you're not supposed to be doing it per visa rules.

by eloff 8y ago

arcticbull 8y ago

yeah, not really re: the tax thing. I'd suggest taking that up with an accountant, or better yet an attorney specializing in international taxation - I am none of these. This is based on my experiences moving from the US to Canada, and further research I've done while traveling. Work is considered performed where you were physically when the work was done. This work requires a work visa (or citizenship), whether for Canada or for said tropical paradise, otherwise you're subject to deportation. Lying about the purpose of your trip to gain unlawful entry is a whole other matter. Compensation you were provided for the work you did is then taxed by the relevant authorities where you were physically when performing the work. This is why US companies are very careful to tell employees never to work when on vacation because if you did they'd have a lot of paperwork to fill in. If you're suggesting you can be a total non-resident of both countries by alternating between the two or splitting your time, luckily the tax authorities have thought of this too, I suggest you look up the definition of a Deemed Resident. Effectively, you are deemed a resident of the country to which you have the strongest connection. Or, you can be dual-status resident where you're a part year resident of one country and a part-year resident of another. Worst case they'll both deem you a resident and full on double-tax you if there's no treaty - but make no mistake you will pay taxes. Check out "What are residential ties?" [1] in the CRA handbook. Now, I'd love to be wrong of course. What I do know is that even if you're on vacation in the US, let's say on a B-2, it's a grey area to even contribute to open source projects. The US doesn't require that what you're doing be paid to be considered 'work'. [1] https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4058/non-residents-income-tax-2016.html#P83_5491 https://www.canada.ca/en/revenue-agency/services/forms-publi...

elhudy 8y ago
>This is why US companies are very careful to tell employees never to work when on vacation scoffs
- arcticbull 8y ago
  To be clear, I mean international vacation, and also, I imagine that once they tell you the burden falls more on your shoulders than theirs, regardless of what they really want :P
  - GlenTheMachine 8y ago
    I attend international conferences for work. I also travel internationally to discuss business deals, exchange technical information, and on the rare occasion actually do engineering. There's never been a (weird) tax implication.
  - chadash 8y ago
    So you're saying that if I have a business meeting in Canada but love and work in the United States, that I owe taxes in Canada? I've never heard of this. In any case, I can't imagine Canada going after you for a few days of taxes and I can't imagine the US saying, oh you were in Canada... No problem, you don't owe taxes for those days. Can you provide some kind of source? I've worked for small companies and huge companies and I've never heard that.
    - arcticbull 8y ago
      Not business meetings, no. However thats not what OP was talking about. OP was talking about spending 6 months in Canada and 6 months abroad and paying taxes to nobody while continuing to work for a foreign employer the whole time. That's completely different. You do have to be careful, in the US it's not permitted to do anything other than business meetings on a B1. The UK is similar. If you do any engineering work at all you're in violation of your entry status. This is just the rules. If you do productive work and are renumerated for it by a foreign employer taxes may well be due. It doesn't often come up as you're not supposed to be doing it per visa rules.