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ARTICLE · 16 NOVEMBER 2017

Americans Working In Canada: 3 Tax Implications You Need To Be Aware Of

Your employer is required to withhold a certain amount from your pay for Canadian tax purposes, but may be able to apply for exemption.

CanadaTax

Are you an American working in Canada? You need to consider the major tax consequences that will directly impact you. Here are three major tax implications that Americans working in Canada should know about.

1. You will be taxed differently if you are moving to Canada permanently.

Generally, if you are a "tax resident" of a particular country, you are liable to pay taxes in that country on your worldwide income. It is not uncommon for a globally mobile individual to be considered a "tax resident" of more than one country. If proper advice is not sought, this can result in two countries having the right to tax your worldwide income, or in other words – double taxation. This problem is often mitigated via the appropriate tax treaty between the two countries in question.

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