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ARTICLE · 25 JULY 2023

So, An Employee Wants To Work Remotely In Canada, Eh?

A number of issues can arise if an employee of a non-Canadian employer comes to Canada to work remotely. Unless the employee is seconded to a Canadian...

CanadaEmployment and HR

A number of issues can arise if an employee of a non-Canadian employer comes to Canada to work remotely. Unless the employee is seconded to a Canadian affiliate of the employer on a cost-recovery basis, the employer will be required to register with the Canada Revenue Agency ("CRA"). Among other things, depending on the circumstances, the employer may also have an obligation to file Canadian tax returns, pay Canadian income tax, and comply with payroll tax and/or value-added tax obligations.

The discussion herein assumes that the remote working arrangement in Canada is intentional. Where the remote working arrangement arose or continued due to Covid-19 travel restrictions, the Canada Revenue Agency ("CRA") has provided for significant administrative concessions that limit a non-resident employer's exposure.

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