Working for a Canadian company while abroad with no work permit

[PTJohnson]

Hi everyone,

I currently have an open work permit through the International Experience Canada, but long story short it looks like I may have to return to the UK when it expires in January 2025. I currently work a fully remote job that requires no in-office presence whatsoever.

However, if I do have to return to the UK, and my employer is willing, can I still continue working for a company that's based in Canada which has no overseas presence in the UK, even without a valid Canadian work permit?

 

[iSaidGoodDay]

Hi everyone,

I currently have an open work permit through the International Experience Canada, but long story short it looks like I may have to return to the UK when it expires in January 2025. I currently work a fully remote job that requires no in-office presence whatsoever.

However, if I do have to return to the UK, and my employer is willing, can I still continue working for a company that's based in Canada which has no overseas presence in the UK, even without a valid Canadian work permit?

Once you are back in the UK, you can work as an independent contractor/self-employed person.

 

[PTJohnson]

Once you are back in the UK, you can work as an independent contractor/self-employed person.

Thanks! So to be clear - I can work for a Canadian-based company without a valid Canadian work permit, so long as I am not actually in Canada, and so long as the company themselves are ok with the arrangement?

 

[iSaidGoodDay]

Thanks! So to be clear - I can work for a Canadian-based company without a valid Canadian work permit, so long as I am not actually in Canada, and so long as the company themselves are ok with the arrangement?

I worked for a Canadian F500 as a contractor for a year from Indian before becoming a PR. You'll be a self-employed person in this case though.

 

[PTJohnson]

I worked for a Canadian F500 as a contractor for a year from Indian before becoming a PR. You'll be a self-employed person in this case though.

And while you were working for this company, presumably you had no other Canadian work permit?

 

[iSaidGoodDay]

And while you were working for this company, presumably you had no other Canadian work permit?

No, I was offered work permit(s), but I declined as that wouldn't allow me to work on my side projects.

 

[Lord_Tony]

No, I was offered work permit(s), but I declined as that wouldn't allow me to work on my side projects.

Isn't it common for folks to work with a visa in the Middle east / in Western countries with PR or GC, continue doing side gigs or run other income streams businesses, investments, rentals etc...in their home countries? If you are in a WP here in Canada, are there laws that legally prevent you from doing side gigs in India?

Forget tax that is a different story the concept of Tax residency.

 

[canuck78]

Isn't it common for folks to work with a visa in the Middle east / in Western countries with PR or GC, continue doing side gigs or run other income streams businesses, investments, rentals etc...in their home countries? If you are in a WP here in Canada, are there laws that legally prevent you from doing side gigs in India?

Forget tax that is a different story the concept of Tax residency.

if you are on a WP yes you are limited on what you can do. It depends on what the different streams of income are. When a PR no issues.

 

[Simba112]

Isn't it common for folks to work with a visa in the Middle east / in Western countries with PR or GC, continue doing side gigs or run other income streams businesses, investments, rentals etc...in their home countries? If you are in a WP here in Canada, are there laws that legally prevent you from doing side gigs in India?

Forget tax that is a different story the concept of Tax residency.

No. Nothing prevents you from doing side gigs outside of Canada...Glad you mentioned tax residency as well....

 

[iSaidGoodDay]

Isn't it common for folks to work with a visa in the Middle east / in Western countries with PR or GC, continue doing side gigs or run other income streams businesses, investments, rentals etc...in their home countries? If you are in a WP here in Canada, are there laws that legally prevent you from doing side gigs in India?

Forget tax that is a different story the concept of Tax residency.

Foreign income was fine, but two things were discouraging:
1. I do a lot of consulting on the side, some of them are Canadian companies too. Taking a closed WP mean I would not be able to work on them.
2. I wanted to migrate my side projects(products) to Canada by establishing an entity here. That was impossible to do so with a closed WP.

 

[Lord_Tony]

Foreign income was fine, but two things were discouraging:
1. I do a lot of consulting on the side, some of them are Canadian companies too. Taking a closed WP mean I would not be able to work on them.
2. I wanted to migrate my side projects(products) to Canada by establishing an entity here. That was impossible to do so with a closed WP.

I get it, yes not legal to do Canadian side gigs on a closed WP.

My wife got the other end of the stick from CRA with income tax, When we were in Australia she did some remote work for an GCC firm and the gulf laws don't have Income tax nor did Australian ATO add tax on income earned abroad in spite of Aussie tax residency. So she didn't ask for a raise for many years.

However in Canada however CRA checks the foreign tax paid on foreign income, since IT was zero in , CRA took a nice cut of her GCC income towards Canadian tax. She stopped that work as this tax hassle reduced the income beyond a minimum viability. Canadian tax residency is unfair to individuals.

 

[canuck78]

I get it, yes not legal to do Canadian side gigs on a closed WP.

My wife got the other end of the stick from CRA with income tax, When we were in Australia she did some remote work for an GCC firm and the gulf laws don't have Income tax nor did Australian ATO add tax on income earned abroad in spite of Aussie tax residency. So she didn't ask for a raise for many years.

However in Canada however CRA checks the foreign tax paid on foreign income, since IT was zero in , CRA took a nice cut of her GCC income towards Canadian tax. She stopped that work as this tax hassle reduced the income beyond a minimum viability. Canadian tax residency is unfair to individuals.

If living in Canada why wouldn’t you be taxed on your worldwide income? That is not an uncommon practice many countries tax your worldwide income. Some people do consulting and primarily have clients abroad should they not pay any taxes?

 

[canuck78]

No. Nothing prevents you from doing side gigs outside of Canada...Glad you mentioned tax residency as well....

Yes there are requirement when you are on a WP in terms of side gigs. Your foreign employers can’t have any offices or clients/customers in Canada. You also can’t set up your own business you need to be employed by others.

 

[Simba112]

Yes there are requirement when you are on a WP in terms of side gigs. Your foreign employers can’t have any offices or clients/customers in Canada. You also can’t set up your own business you need to be employed by others.

The question was if you have WP in Canada and you have side gig in India, Is there any law that preventing you to do the side gig in that situation? The answer is NBO, but you will need to declare that income for tax purpose if you are resident of Canada for Tax Purpose

 

[Simba112]

Yes there are requirement when you are on a WP in terms of side gigs. Your foreign employers can’t have any offices or clients/customers in Canada. You also can’t set up your own business you need to be employed by others.

Can you share that LEGAL requirement restricting you from doing side gigs when you are on WP? Including one that restricts you to set up own business if you are on Open Work Permit