Remote work for hk based company while studying in Canada

[jcrr]

Hi all,

I have read some old threads here, knowing below (please correct me if I am wrong)

1. international students can work remotely for home country based company while studying in Canada
2. International students can work unlimited hours remotely, as long as the company is based outside Canada, and get paid outside Canada
3. Need to pay global income tax

if the above are valid, may I know how exactly it works?
My story is that I’m currently living and working in hk, and am going to study in Canada this fall. My company and I both want to keep me in the position and work remotely. Payroll transfer to my hk bank
Do I need to change anything on my current contract (i am a full time employee currently)
if yes, do I need to sign a new contract and what should be stated?

many thanks in advance! Much appreciated for any advice

 

[testaccountcv]

I don't think your job has anything to do with your study in Canada (practically speaking) if all payroll and tax are simply handled within hk. And Canada tracks hours only through SIN. But wait for a pro. This is kinda the grey zone.

 

[jcrr]

I don't think your job has anything to do with your study in Canada (practically speaking) if all payroll and tax are simply handled within hk. And Canada tracks hours only through SIN. But wait for a pro. This is kinda the grey zone.

thanks testaccountcv for your reply.

I found on twitter that the IRCC states below

https://twitter.com/i/web/status/1381624342702915589

"Working from home for a company in another country doesn't count as working in Canada. The limitation of 20 hours doesn't apply"

Does that means my identity should be a hk employee? thus, as long as my employment contract did not stated any work location limitation then it should be fine? only that i need to pay tax on both sides?

 

[SeanSong91]

1) immigration regulations define work (subject to 20h/wk req) as an activity that directly competes with Canadian labour market. As long as the person the pays you is outside Canada so there is no reason he or she should routinely employ a Canadian resident, it is not work in immigration perspective. I am working remotely as a translator since I came here about 2.5 yrs ago.

2) if you are a resident of Canada, you must declare all income you earned globally. When you are reporting your foreign income, you will be able to declare how much taxes you paid as well. For foreign income, you will be taxed for the difference of what you should have paid if the income is earned in Canada minus the taxes that already has been paid in HK. For instance, let’s say you earned $10,000 in HK and paid $500 to HK as income tax. If the tax assessed for that $10,000 by CRA is $1,500, you will pay the remaining $1,000 to CRA.

 

[jcrr]

1) immigration regulations define work (subject to 20h/wk req) as an activity that directly competes with Canadian labour market. As long as the person the pays you is outside Canada so there is no reason he or she should routinely employ a Canadian resident, it is not work in immigration perspective. I am working remotely as a translator since I came here about 2.5 yrs ago.

2) if you are a resident of Canada, you must declare all income you earned globally. When you are reporting your foreign income, you will be able to declare how much taxes you paid as well. For foreign income, you will be taxed for the difference of what you should have paid if the income is earned in Canada minus the taxes that already has been paid in HK. For instance, let’s say you earned $10,000 in HK and paid $500 to HK as income tax. If the tax assessed for that $10,000 by CRA is $1,500, you will pay the remaining $1,000 to CRA.

Thank you so much @SeanSong91
May I ask if you are freelance or do you have a contract with your home country based company? If the remote work does not count as “work” in Canada, does that means I am a hk employee?
My manager and I are struggling with the contract issue.

 

[testaccountcv]

Thank you so much @SeanSong91
May I ask if you are freelance or do you have a contract with your home country based company? If the remote work does not count as “work” in Canada, does that means I am a hk employee?
My manager and I are struggling with the contract issue.

I freelanced before. Mainland company though. The contract was straightforward and had no issues. I was just treated as working within the mainland. it may depend on HK laws on this matter.

 

[testaccountcv]

1) immigration regulations define work (subject to 20h/wk req) as an activity that directly competes with Canadian labour market. As long as the person the pays you is outside Canada so there is no reason he or she should routinely employ a Canadian resident, it is not work in immigration perspective. I am working remotely as a translator since I came here about 2.5 yrs ago.

2) if you are a resident of Canada, you must declare all income you earned globally. When you are reporting your foreign income, you will be able to declare how much taxes you paid as well. For foreign income, you will be taxed for the difference of what you should have paid if the income is earned in Canada minus the taxes that already has been paid in HK. For instance, let’s say you earned $10,000 in HK and paid $500 to HK as income tax. If the tax assessed for that $10,000 by CRA is $1,500, you will pay the remaining $1,000 to CRA.

nice explanation on the tax part!

 

[jcrr]

I freelanced before. Mainland company though. The contract was straightforward and had no issues. I was just treated as working within the mainland. it may depend on HK laws on this matter.

Thanks @SeanSong91
I am researching on the hk side as well, should have no issue just need some evidence for my boss.
Thanks again for such valuable sharing!

 

[SeanSong91]

Thank you so much @SeanSong91
May I ask if you are freelance or do you have a contract with your home country based company? If the remote work does not count as “work” in Canada, does that means I am a hk employee?
My manager and I are struggling with the contract issue.

the form of contract/employment doesn’t matter. You can be an employee, or a self-employed person(business owner, independent contractor)

i have contracts with multiple companies as an independent contractor, so to speak. However, what IRCC will look in terms of study permit is if the work competes with Canadian labor market. As long as the person pays you(client or employer) is based outside Canada you will be fine.