Sharath_Toronto
Returning Member

Working remotely from Canada as PR for Indian organization

Hi, I have some questions related to employer/organization and where we reside.
 1. Person who is Canadian PR, working for Canadian Organization, gets salary in CAD, but currently lives/working remotely in India , is it legal ? will there be any issues ?
2. Person who is Canadian PR, working for Indian Organization, gets salary in INR, but currently lives/working remotely in Canada , is it legal ? will there be any issue ?
 Kindly suggest.

Getting started

As per CRA, there are 2 different tax consequences that will be applied in 2 cases above:

 

1) You are Canadian and working remotely in India, you could be considered as a deemed non-resident.

Deemed non-resident when you have residential ties to Canada and you meet the criteria to be a factual resident. However, you are also considered a resident of India qualified for a tax treaty. You have the same filing requirements as a non-resident.

  • As a non-resident, you do not have to report world income to the CRA.
  • However, the Tax Part I could apply to you for earning income inside Canada according to CRA.

2) You are a Canadian working inside Canada and earning foreign income.

-> All income that you have earned from foreign and domestic sources must be declared on your personal tax return. 

  • The amounts are in INR must be converted to Canadian dollars.
  • If your foreign income is not tax-exempt due to a tax treaty, you may be able to claim a Foreign Tax Credit 

NOTE: You must contact the Canada Revenue Agency (CRA) to advise you on your residency status as there are too many variables to this question. How do I contact the Canada Revenue Agency (CRA)?

 

For more information please review:

TurboTax article New Canadians: Your Tax FAQ or Canadian Taxes 101

Canada Revenue Agency (CRA) Individuals - Leaving or entering Canada and non-residents

 

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.

 

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