Olivier Custeau, Fiscaliste, B.A.A., M. Fisc., EA

Working on American Soil and Taxation

US taxation  —   — Share

5

Question:

Hello Oliver,

i am going to work in the USA do i need to fill out a form?

Answer:

Hello Nicolas,

Thank you for your email. If you are going to render services in the U.S. as a self-employed, filling a Form 8233 – Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual would be appropriate. By preparing this form, you are confirming, under the Canada-U.S. tax treaty, that you will not have a permanent establishment in the United States. Therefore, your client will not have to withhold 30% tax on any payment made or credited to you. Without this form, the payor (your client) will be required to withhold 30% tax and this amount will only be refunded when you will be preparing your U.S. tax return. Whether this form is completed or not, you will be required to file a U.S. tax return since the services rendered in the U.S. will be considered Effectively Connected Income.

It should be noted that taxes may be payable in the state(s) in which you render services, as not all states follow the Canada-U.S. tax treaty.

Hoping everything is clear, do not hesitate to contact me for any questions.

Greetings,

Olivier Custeau, B.A.A., M.Fisc., EA

Fiscaliste et Enrolled Agent  / Tax master and Enrolled Agent