While it’s possible for US citizens to work remotely in Canada, there are two immediate concerns –
Immigration – US citizens (who are not Canadian Permanent Residents or Canadian Citizens) have certain restrictions if they are in Canada for work.
- NAFTA (USMCA) allows US citizens (who meet NAFTA Professionals list) to work in Canada without a work permit as a professional either as an employee of a Canadian company, through a contract between the person and the Canadian company or it would need to be a contract between US employer and the Canadian company.
- If you are coming as an Intra company transfer (being transferred from US company to Canadian company) as a manager or executive, then you are going to need a work permit.
- You are allowed to be in Canada for business purposes. Business visitors are allowed to carry their activities without a work permit.
- Traders and investors need work permit.
If you are not sure about your immigration situation, you can always contact the Immigration, Refugees and Citizenship Canada regarding your situation who would be able guide you on this.
Taxation – Once you are in Canada, if you are spending more than 183+ days during the tax year, you might be considered a tax resident of Canada. If you are working for a US employer, you might have to file taxes in both US and Canada because US citizens are required to file tax in the US and as a tax resident of Canada, you would be required to file taxes in Canada.
It would be best to consult a tax consultant if you believe there might be certain exemptions that apply to you due to the nature of your business.