# UK Citizen, working for UK company working in Canada temporarily



## mmatthews (Apr 17, 2010)

Hi,
I'm new to this site so apologies if this question has already been asked in the past (I have searched and found nothing, honest!)

I have a complicated position, I am a UK citiizen, I work for a UK company and get paid in the UK, however I currently live in Dubai as I have been working on a project for my UK company for 2 years.

To allow me to work in Dubai I became a resident of Dubai on a company sponsored Visa (my company opened an office in Dubai) and I am exempt from UK tax because of this and pay no tax in Dubai as it is a tax free country.

Now, this is the tricky bit. My UK employer now needs me to start work on a contract in Canada (Montreal) for around 6 months, but during this time I will also be working on multiple projects in the U.S, so I will be travelling between Canada and the US a lot, though will be residing in rented accomodation (or possibly hotel apartments) in Montreal.

I am trying to find out what I need to do about work visa's, ie. are these required when working on a temporary basis? I am not looking for residency status of either Canada or the U.S but not sure what the implications are, also who do I pay tax to? if anyone!

My company currently has an office in Calgary and are also opening another in the U.S (probably in Washington DC), does this have any effect on my ability to work in these countries on a temporary basis?

I would like to understand what the visa and tax implications of making such a move might be, as I have been searching the internet for days and can't find anyone with a similar circumstance to myself.

I would appreciate any advice anyone can offer and recommendations for tax lawyers and immigration attourneys if appropriate.

Thanks in advance for any assistance you can offer.


Martin


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## JGK (Dec 12, 2009)

mmatthews said:


> Hi,
> I'm new to this site so apologies if this question has already been asked in the past (I have searched and found nothing, honest!)
> 
> I have a complicated position, I am a UK citiizen, I work for a UK company and get paid in the UK, however I currently live in Dubai as I have been working on a project for my UK company for 2 years.
> ...


Whatever options are open to you, paying Tax in Quebec will be the worst one. The Income tax rate is damn near 50%. :focus:


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## mmatthews (Apr 17, 2010)

JGK said:


> Whatever options are open to you, paying Tax in Quebec will be the worst one. The Income tax rate is damn near 50%. :focus:


Thats even worse than the UK!!! :-( Thanks for the reply, I appreciate it.


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## Bevdeforges (Nov 16, 2007)

Yes, you do seem to have a somewhat complicated situation here. Technically, it's your employer who should be worrying about what sort of visa you'll need for this project. 

You're normally allowed a certain amount of time on "business trips" in either Canada or the US. From what you've said here, I'd suspect your company should get you a six-month visa on a "business trip" basis. (I'm not super familiar with Canadian immigration stuff, but this seems to be the relevant page: Visiting Canada).

As long as your work in the US is in the nature of short "business trips" (say, a few days at a time to up to a week or two) you can probably avoid having to get a visa for the US and just come and go on the VWP.

As a temporary worker, I suspect all things would remain the same as they are now for your tax situation - as long as you maintain your ties to Dubai. Keep your home there, and it wouldn't hurt to make the occasional trip back there (even if only to check on the house). 

If the project starts running longer than six months, you may have some difficulty on the tax front. But maintaining your Dubai residence (and returning there at the conclusion of this project) will definitely help.
Cheers,
Bev


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## NickZ (Jun 26, 2009)

If you work in Canada you are a tax resident for at least the work income. Income will include cash and any taxable benefits. 

Quebec taxes can't be 50%. I think the poster meant the combination of Federal plus the Quebec provincal taxes equals 50%. Even that seems high. What's the top federal rate at the moment? 33%?


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## JGK (Dec 12, 2009)

NickZ said:


> If you work in Canada you are a tax resident for at least the work income. Income will include cash and any taxable benefits.
> 
> Quebec taxes can't be 50%. I think the poster meant the combination of Federal plus the Quebec provincal taxes equals 50%. Even that seems high. What's the top federal rate at the moment? 33%?


On a salary of $66k in 2007 the federal tax rate is 22% and Quebec Provincial rate is 24%

In Quebec, salaries over $57k are taxed at the highest provincial rate.


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## work824 (Aug 4, 2010)

*Working in Canada*



mmatthews said:


> Hi,
> I'm new to this site so apologies if this question has already been asked in the past (I have searched and found nothing, honest!)
> 
> I have a complicated position, I am a UK citiizen, I work for a UK company and get paid in the UK, however I currently live in Dubai as I have been working on a project for my UK company for 2 years.
> ...



Hello Martin,

Canada is a tax grab country. Of course it has all the natural resources it should be rich but somehow the government wants more. Now instead of Montreal why not have your taxes filed from Ontario if you can work from the Ontario side of Quebec. Although an apartment in a hotel accommodation is not necessarily a permanent residence. You could move from one to the other if necessary.

No matter which ever of the two countries you work in, you will require work permit through business. If your company legal office is good they can streamline it for you for both USA and Canada.

I wish you good luck in whatever field you are in but just as they say my friend -- Taxes and Death are two certain things to happen (at least in this part of the world for taxes).

Cheers.

work824


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