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1. Working remotely from another country canada how to#
2. Working remotely from another country canada professional#

“Failure to meet tax obligations can result in problematic situations. “The risks of non-compliance are real for the employer,” says CPA Annie Poitras, lead senior manager, taxation, at Raymond Chabot Grant Thornton in Quebec City. And, with the introduction of vaccination passports and increasing remote work opportunities, a growing number of employees are attracted by the prospect of teleworking from abroad.īut, before employees relocate, employers have several legal and tax liabilities to keep in mind.

Working remotely from another country canada professional#

You should consult with a licensed professional for advice concerning your specific situation.Before granting an employee’s request to telework from another country, employers need to ensure the organization is meeting all its obligations.ĭespite the widespread closure of borders, there are more digital nomads than ever – 35 million worldwide. The information provided here is not investment, tax or financial advice. An advisor can guide you through the potential tax risks of having employees abroad and offer mitigation strategies that protect your company’s short- and long-term interests. To ensure a successful mobility program and to protect your company from potentially costly mistakes, consult a tax or global mobility advisor before approving remote worker requests. Employees are demanding more flexibility, and employers want to maintain their talent and expand their hiring pool.

Working remotely from another country canada how to#

How To Move Forward With A Global Mobility PolicyĮmployers are in a difficult position when an employee approaches HR about working remotely in another jurisdiction. By having a standard procedure, you can more efficiently and fairly address employee requests while staying in compliance and managing your company’s risk tolerance. This can help reduce the risk of falling under local employment laws. Others make changes to the role of remote workers so that they are classified as independent contractors rather than employees. Some companies only allow remote workers in countries where they have an existing office because the company already has nexus there.

To ensure a successful remote working program, develop a plan or policy that allows your company to effectively address these concerns as they arise. Those rules may apply to your company, even if the company is not incorporated there. The jurisdiction that the remote worker is in may have different rules for health insurance, sick leave, overtime pay, work hours, paternity and maternity leave and more. You should also evaluate the employee’s rights and benefits in the foreign country.

For example, who is responsible for travel expenses, travel insurance or obtaining a visa? Is there a date that you expect the employee to return to their place of regular employment? How will other non-tax issues and benefits, such as paid time off, retirement savings, severance, healthcare and insurance, be affected by their presence abroad? Your remote worker should understand what you expect from them during their time abroad. Employers can create a letter of agreement to clarify the expectations of everyone involved.

What To Do Before Approving Remote Working In A Foreign CountryĪfter assessing the tax implications of an employee working in a foreign country, consider making a plan for potential situations that could arise. Furthermore, regular monitoring of the tax situation is necessary, as tax laws are evolving quickly in many countries as a part of an effort to keep up with remote working and digitalization. Because of this, employers need to have a clear understanding of the domestic tax and employment laws of the nation that the remote worker is in. What constitutes permanent establishment in one country may not apply in another country. Moreover, each country has its own definition of permanent establishment and nexus.