Tax Considerations For Foreign Personnel Transferred To Canada

This article discusses certain Canadian income tax implications to a resident of a foreign country who is transferred to work in Canada on either a temporary or permanent basis. The article begins with a discussion of the importance and impact of status as a resident or non-resident of Canada for Canadian tax purposes. This is followed by a review of the Canadian tax treatment of reimbursements of and allowances for relocation costs that are paid by the employer to ensure that the employee and his family are not financially disadvantaged by the transfer. Finally, there is a discussion of some tax planning that may be contemplated both before and after the transfer to Canada.

The discussion is of a general nature only and is not exhaustive of all income tax considerations. The income tax implications will vary depending upon the particular circumstances and professional legal advice should be sought in this regard.