Кому цікаво , ось - спілкувався із канадським таксовим офіцером - коротко
"You won’t pay double tax.
There is a tax relief provided by allowing a foreign tax credit against the taxes paid in
Ukraine."
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Conversation with YawxO, Finance
You: Hello. When person comes under CUAET - is it mandatory to pay taxes in
Canada if he/she still works in Ukraine remotely? Is there some kind of tax
agreement among Ukraine and Canada? Thanks!
YawxO: Hello, welcome to Justanswer.
I am Yaw, a certified CPA and I’m glad to assist you today.
YawxO: If you’re a tax resident of Canada, you’re taxed on your worldwide income.
You: how to define if I am tax resident?
YawxO: For a tax treaty, there is a relief provided in the tax treaty.
If you are a resident of Canada and reporting your Ukrainian-sourced income (or
other worldwide income), the income is taxable in Canada.
You: does CUAET and work permit make me a tax resident for example in Alberta?
You: more questions:)
1. what would be tax for my UA income in Alberta?
2. how would Canada know that I still get income working remotely? Is it just my will
to pay taxes in this case?
3. What is penalty for not paying taxes for worldwide income?
YawxO: The most important thing to consider when determining your residency
status in Canada for income tax purposes is whether or not you maintain, or you
establish, significant residential ties with Canada.
YawxO: Does CUAET and work permit make me a tax resident for example in
Alberta?- Yes, you’re a tax resident.
You: what is "significant residential ties"?
I'm planning to come to Canada, AB , work there , live there and apply for PR when
possible.
YawxO: what would be tax for my UA income in Alberta?
The tax rates in Alberta range from 10% to 15% of income.
You: am i tax resident from the first date of entry to Canada or after some period?
You: so I should pay taxes both in Ukraine and Canada, correct?
YawxO: You’re a tax resident the time you have the permit to work.
YawxO: so I should pay taxes both in Ukraine and Canada, correct?- Since there is a
tax treaty, you won’t be liable to double taxation.
You: sorry, I still didn't get it....
For example, I have $1000 income in Ukraine, I pay 5% taxes according to sole
proprietorship law and single social tax ~ $100. So net income is $850.
Shall I or shall I not pay mentioned 10-15% in AB for my $1000 income brutto? sorry
for being dummy:)
YawxO: You won’t pay double tax.
There is a tax relief provided by allowing a foreign tax credit against the taxes paid in
Ukraine.
You: thanks for great answers!
and the last but not least, when I'll be hired for a full time employment in Canada,
shall I close my sole proprietorship in Ukraine or I still can continue getting income
remotely in parallel with the Canadian job?
YawxO: You can still operate your sole proprietorship in Ukraine.
You: got it, thanks for assistance
