But what happens to those Canadians living and working in US (like dual citizenship, greencard holders) and filing taxes to IRS annually. Do these Canadians need to file & pay tax in Canada? I know filing annual tax in Canada is mandatory, but paying taxes is the part I am not too clear about. There is an agreement between these 2 countries not to double tax their citizens when they work in the other countries.
Well you'll pay taxes in the United States , report the taxes paid as foreign tax credit in Canada n then possible pay the surplus federal tax in Canada, depending on the rules set in the double taxation treaty.
Could my canadian corporation do work for an American company for 6 months at a time? If so what kind of taxes do I have to pay, do I get double taxation?
