Jul 27, 2023
Although Immigration, Refugees and Citizenship Canada (IRCC) is exploring potential policies to lure digital nomads to Canada, it is unlikely IRCC would provide tax breaks to incentivize remote workers from other countries to stay longer than six months, says Tax partner Dov Begun in an interview with Canadian Lawyer.
“I can’t see that happening because I think that would be very inequitable,” says Dov.
A digital nomad is an employee who can work remotely from anywhere in the world. Under the current rules, such a person needs a visitor’s visa to relocate to Canada and can stay for up to six months.
Dov says that, in Canada, the federal government taxes individuals based on residency. Residents of Canada pay income tax wherever the income originates, but non-residents are only subject to Canadian income tax on income from sources inside of Canada.
“Someone who’s a non-resident of Canada can actually be a digital nomad and really keep themselves out of the Canadian tax system,” says Dov.
Read the full article by author Aidan Macnab posted on July 27, 2023.