Canada

EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY
Tax rate Progressive tax rates: between 0% and 53.53% all depending on the provinces and territories.
A taxable income below CA$11,809 is not taxable at the federal level and the basic exemption amount at the provincial level varies based on the provinces.
Tax period Calendar year.
Tax residency / Domicile according to domestic law Resident in facts: significant and secondary ties such as home, spouse and dependant children  ordeemed resident if present for more than 183 days in a calendar year.
Tax registration Not required.
Employment income definition Any remuneration and taxable benefits received by an employee (each benefit should be analyzed based on the employee’s circumstances).
Examples of tax exemption Housing provided or housing allowance (if certain conditions are met).
Specific expatriate concession Not applicable.
Income of board members It depends on the type of amount received by the directors, i.e. director fees or salary or both and the tax residency of the director as well as the place where services are provided. Generally, income is considered as employment income.
Tax returns General rule: required if taxes to pay. The filing deadline is April 30th of the year following the end of the taxation year.
Tax payments On employment income, taxes are withheld at source by the employer. Any additional taxes for a taxation year are due no later than  April 30th of the year following the end of taxation year, upon filing the Canadian individual income tax return(s).
TAX TREATIES
Employment income / income from board members Article 15 of the tax treaty of the countries with which Canada has signed a tax treaty.
INTERNATIONAL SOCIAL SECURITY
Cross border employments No specific rules
Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
Not applicable
Social Security Cost as % from gross salary and absolute amounts Canada has various social security system that are mainly funded through employee (deductions at source) and employer contributions.
The rate depends on each social security and some have maximum annual contribution amounts.
IMMIGRATION
Work permit All temporary residents may not work unless authorized to do so. These autorisations include the following: the authority to work without a permit, open work permit holders, holders of employer-specific work permits. In 2017, a new work permit exemption had been introduced for certain high-skilled work of a short duration.
Visa The following travellers need an Electronic Travel Authorization (eTA) to board their flight to Canada. However, these travellers do not need an eTA if entering by land or: Andorra, Australia, Austria, Bahamas, Barbados, Belgium, British citizen, British National (Overseas), British overseas citizen (re-admissible to the United Kingdom), British overseas territory citizen (with citizenship through birth, descent, naturalization or registration in one of the British overseas territories of Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Falkland Islands (Malvinas), Gibraltar, Montserrat, Pitcairn Island, Saint Helena, Turks and Caicos Islands), British Subject with a right of abode in the United Kingdom, Brunei Darussalam, Bulgaria, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong Special Administrative Region of the People’s Republic of China (must have a passport issued by Hong Kong SAR), Hungary, Iceland, Ireland, Israel (must have a national Israeli passport), Italy, Japan, Republic of Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Monaco, Netherlands, New Zealand, Norway, Papua New Guinea, Poland, Portugal, Romania, Samoa, San Marino, Singapore, Slovakia, Slovenia, Solomon Islands, Spain, Sweden, Switzerland, Taiwan (must have an ordinary passport issued by the Ministry of Foreign Affairs in Taiwan that includes the personal identification number), United States, lawful permanent resident of Vatican City State (must have a passport or travel document issued by the Vatican).
All other travellers need a visa to come to Canada by any method of travel – plane, car, bus, train, or cruise ship.
Residency permits / registration certificate Canada has many facilitated permanent residency pathways for temporary foreign workers, particularly for skilled workers who have completed 12 months or more with a Canadian employer. The federal express entry programs include the Canadian Experience Class, the Federal Skilled Worker Class and the Federal Skilled Trades Class. Canadian provinces also administer their own provincial permanent resident programs.
Driving license A driver’s licence issued by the government of Canada is required to drive a car in Canada. Foreign driver’s licence can be used in Canada if an Internation Driving Permit is obtained in the home country.
STOCK OPTION PLAN Benefit is treated as employment income.  Favorable tax treatment may be available to stock option benefits if stocks of Canadian controlled private corporations and certain conditions are met. Foreign plans must be analyzed from a Canadian income tax perspective.
ARTICLE 15 OF THE OECD MODEL
183 days Days of physical presence.
Notion of employer Economic employer.
Existence of a permanent establishment PE is a tax treaty concept, which is generally based on article 5 of the OECD model tax convention.   If countries with which no treaty is signed by Canada: no definition of PE except and only for interprovincial taxation.

 

Arda Minassian
Leader Global Mobility
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