Hi. I am landing in Toronto next month. I am a software engineer, and my current employer in U.S.A has agreed that I can keep working for them from Canada. Right now I am on a H1B visa. Can I work from Canada for them, and get paid as a contractor (as opposed to being an employee)? Also, will I be liable to pay taxes in both countries?
Can one of the experts shed some light on this? Before I leave U.S., I have to sign a new contract with my employer. What things should I be careful about?

Thanks,
Aseem.

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Can I work from Canada for them, and get paid as a contractor (as opposed to being an employee)? Also, will I be liable to pay taxes in both countries?
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Yes, You can work for that employer and You will be liable to pay the taxes in canada, as you will be resident of canada not US.
e.g. Peoples who tooks the work contracts from US and get job done in canada / india doesn't pay US taxes, they pay the taxes in their country of residence.

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Can one of the experts shed some light on this? Before I leave U.S., I have to sign a new contract with my employer. What things should I be careful about?
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Again I'm not an expert, just giving you my thoughts.

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Thanks
Gary

I did that for 4 months without any problem, but I think if you need to travel in the US for your work, you should get a business Visa.

It is better to consult a lawyer, but I think the process is quite straight forward.

Just my thoughts.

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A Proud Indian Canadian

Thanks a lot, Gary and Garvo Gujarati. However, from a Taxes and Legal standpoint, can Massood-ji please comment on this thread?

thanks,
Aseem.

In Canada you are required to declare your worldwide income. If you are deemed to be residing and working in the US, you can elect to pay your taxes there and not pay anything in Canada.

However, I think you'll have to end up paying taxes on the income in Canada since it's contract work. An accountant will be able to help you out more accurately regarding taxes.

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Massood Joomratty, LLB(Hons), LLM

http://www.passportcanada.com" target="_blank">Your Canadian Immigration Lawyer

http://www.joomratty.com" rel="nofollow">LINK
+1-604-590-0607

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Orginally posted by aseem_mal

Hi. I am landing in Toronto next month. I am a software engineer, and my current employer in U.S.A has agreed that I can keep working for them from Canada. Right now I am on a H1B visa. Can I work from Canada for them, and get paid as a contractor (as opposed to being an employee)? Also, will I be liable to pay taxes in both countries?
Can one of the experts shed some light on this? Before I leave U.S., I have to sign a new contract with my employer. What things should I be careful about?

Thanks,
Aseem.

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