Am I a Canadian Tax Resident? Remote Work and Tax FAQs

Can I work a remote job for an American company from Canada?

Yes, under Canadian immigration law, Americans (and other foreign nationals) are allowed to work remotely while in Canada in a position paid by a company in their home country.

If you are American living in Canada, you can continue working in your US remote position while in Canada. The same applies for citizens of all other countries who are in Canada – regardless of your immigration status in Canada, you are allowed to work in a remote position from Canada for a company based in any other country.

Working remotely in Canada as a citizen of another country is legal under Canadian immigration law. This is the basis of Canada’s “digital nomad visa,” which is simply visitor status.

What do I need to work remotely from Canada?

If you are working for a Canadian company, you will need a valid Social Insurance Number (SIN) and authorization to work in the form of a work permit.

If you are working for a company which is not Canadian, you need to continue to maintain valid visitor status in Canada by either leaving and re-entering, or applying for a visitor extension (visitor record). You also need to have whatever is required by that country’s laws.

Otherwise, you need a stable internet connection which is easy to obtain in all but remote areas of Canada.

If I work remotely from Canada for a company based outside Canada, am I a tax resident of Canada?

Whether you are a tax resident of Canada depends on multiple factors, including how many days per year you spend inside Canada according to Revenue Canada. Other factors include whether you maintain a residence in Canada, what family members you have in Canada, and whether you have a Canadian driver’s license or health card.

Please note that American citizens, regardless of their country of residence, are required to file a US tax return every year.

Can I work a remote job for a Canadian company while inside Canada if I am not a Canadian citizen?

This depends on your immigration status in Canada. If you are working for a foreign company while you are in Canada, then you are not considered to be “participating in the Canadian labour market.” But, once you are working for a Canadian company while you are in Canada, then you are competing with Canadian citizens and permanent residents for jobs – in order to do this, you must have authorization to work in Canada.

Who has authorization to work in Canada?

• Canadian citizens
• Canadian permanent residents
• Work permit holders
• Individuals authorized to work without a permit (such as those on maintained status)

Can I work in Canada while on a visitor visa?

When you are inside Canada as a visitor, you can work in Canada remotely for a company which is not Canadian. But, you cannot work for a Canadian company while you are in Canada – to do this, you will need to get authorization to work in the form of a work permit or become a permanent resident.

If you aren’t sure whether you are legally allowed to work in Canada, contact us.