@caroline90 Employers are legally required to withhold taxes in Canada. Leaving it up to the employee is not an available choice. I am surprised that Japan does not have similar rules.
@mariangel I was talking about Japan taxes. But generally a company will withhold taxes in Japan and pay a bunch of other stuff too but that is not an option if you get paid from outside Japan.
@caroline90 A foreign employer with no PR in Canada but employs a person in Canada is required to register with the CRA and withhold all taxes and payroll deductions. I believe similar rules exist in other countries. It seems odd to me that Japan does not require this too .
@mariangel Why would the foreign company care? CRA has no jurisdiction over the foreign company, what can CRA do? I can see it may be possible if the 2 countries have a tax treaty, but otherwise?
@caroline90 If the foreign company does any business in Canada it should care. Obviously, the CRA will have very little leverage in many situations but that is a common problem when dealing with tax compliance for foreign corporations. That said, most foreign companies in this situation would opt for a contractor relationship which puts the onus on the worker.
@mariangel I asked my mom who, before retirement, was a CRA investigator auditing canadian and foreign business who must file with CRA. She isn't aware of a system for foreign based companies to withhold income taxes for canadian residents. Do you have a source of information for this system on the CRA website?
@greenmart123 I have a similar situation. I’m thinking about marriage with my Japanese girlfriend and moving to Japan with her. I work for a Canadian IT company that allows me to work from here. I could either ask my company to make me a freelancer or keep my employment. But I’m really don’t know anything about tax and I’m scared about getting in trouble with double tax (which would literally be a big issue for my economy). What should I do? Is there anyone who can legally help me in Canada or Japan?
@greenmart123 I don't understand the issue you are asking about. You don't automatically become nonresident for tax purposes unless you apply for it. You can stay in Japan full time and still be considered a factual resident of Canada. You will have to file tax returns in both countries. But it's unlikely you will have to pay taxes to Canada after Japan take their hefty cut.
