Remote work has become a new normal for many employees and
employers, offering benefits to both parties. However, the
prevalence of remote work has created new legal and regulatory
challenges for employers and, in particular, employers with
employees working in new jurisdictions.
A non-resident employer may, for example, become subject to
Canadian income tax if the employer has employees working remotely
from a location in Canada. Canadian employers may also have
additional tax considerations if they have employees working
remotely in other provinces.
This article outlines some of the potential Canadian tax issues
for employees working remotely in Canada and the Canada Revenue
Agency's (the “CRA”) guidance
and administrative concessions for non-residents during the
COVID-19 pandemic.
