Freelancing while in closed work permit

[karthikaavenkat]

Friends - I am in Canada in closed work permit. Can I also do freelancing work for non-canadian firms?

 

[Caribou]

Friends - I am in Canada in closed work permit. Can I also do freelancing work for non-canadian firms?

If they'll issue you T4, NO.

 

[jes_ON]

Friends - I am in Canada in closed work permit. Can I also do freelancing work for non-canadian firms?

If their place of business is outside of Canada, then, yes.

 

[thisisauser]

Friends - I am in Canada in closed work permit. Can I also do freelancing work for non-canadian firms?

Firms incorporated outside of Canada? yes. But you can not for example work for IBM Canada Ltd. even though they are a regional subsidiary of IBM, the American company.

 

[karthikaavenkat]

They are outside Canada and they do not have any business in Canada. Looks like the answer is "Yes" I can do freelancing outside Canada.

 

[Pratima26]

hi kartik,

me too have a closed work permit and getting some freelance scientific work from outside Canada which will pay me in USD...I am ready to declare this for tax purpose but confuse if I am allowed to do it legally. please advice. thanks

 

[Pratima26]

hi jes....I have a closed work permit and getting some freelance scientific work from outside Canada which will pay me in USD...I am ready to declare this for tax purpose but confuse if I am allowed to do it legally. please advice. thanks

 

[jes_ON]

- you are allowed to do it legally
- it is a bit of a tax headache, esp. if you also have to file in the USA (if you don't and you only have to worry about Canada, it's a bit easier). E.g. You are required to use the cost accounting method in Canada (as opposed to the accrual accounting method that is generally the default method in the USA).
- Depending on how much you expect to earn, you may have to register for an HST number (and collect/pay sales tax) (Can't remember the threshold, in my case I didn't make that much).

My suggestion to you is, it would probably be worth the consultation fee to visit a tax accountant to learn how to set things up right before you start... then after the first year it should be relatively easy.

 

[iam_toby]

I'm having the same problem. I have a 'closed' WP but on it employer and bonded says "NO".
Only occupation is mentioned as IT.
My clients would issue me cheques, no T4s. Would that be ok? It's in the same occupation mentioned on my WP.

 

[jes_ON]

I'm having the same problem. I have a 'closed' WP but on it employer and bonded says "NO".
Only occupation is mentioned as IT.
My clients would issue me cheques, no T4s. Would that be ok? It's in the same occupation mentioned on my WP.

Hi toby - not clear that you read the entire thread. On a closed work permit, you can only freelance for clients/customers OUTSIDE of Canada. But not for Canadian clients.

what kind of work permit do you have?

of course you realize none of this would count towards CEC requirements...

 

[iam_toby]

Hi toby - not clear that you read the entire thread. On a closed work permit, you can only freelance for clients/customers OUTSIDE of Canada. But not for Canadian clients.

what kind of work permit do you have?

of course you realize none of this would count towards CEC requirements...

It's an IEC Young Prof WP. But under bonded it says 'No' and Employer it says 'Open'.
Only occupation and location has information.
Yes, I don't need that experience counted towards my CEC requirements. I have a full-time job,
but before I got my closed WP I had an open work permit ( working holiday ) and started helping
people with computers on the side.
So I was wondering if I can still do that, legally I mena.

 

[jes_ON]

It's an IEC Young Prof WP. But under bonded it says 'No' and Employer it says 'Open'.
Only occupation and location has information.
Yes, I don't need that experience counted towards my CEC requirements. I have a full-time job,
but before I got my closed WP I had an open work permit ( working holiday ) and started helping
people with computers on the side.
So I was wondering if I can still do that, legally I mena.

Well, I'm still confused. If it's an IEC Open work permit, then yes, it is legal. If it is a closed work permit, it is not.

 

[iam_toby]

IEC WHP ( Working Holiday Program ) is the open workpermit, the one I had last year.
This year I have the IEC Young Professionals, apparently a closed WP according to IEC website.
However, my WP clearly says Bound "NO" and Employer "OPEN".
Only OCCUPATION and LOCATION has information.
So I can't freelance?

 

[jes_ON]

IEC WHP ( Working Holiday Program ) is the open workpermit, the one I had last year.
This year I have the IEC Young Professionals, apparently a closed WP according to IEC website.

Which IEC program (from what country?)

 

[iam_toby]

Germany.

If your application for a work permit is successful under the IEC ”Young Professionals” category, you will receive a work permit that is valid for you to work for one specific employer only, i.e. the company or institution that made the job offer to you. Once your application has been approved you cannot change the employer.

[ Source: http://www.canadainternational.gc.ca/germany-allemagne/experience_canada_experience/young_professionals-jeunes_professionnels.aspx ]

However, as I already mentioned, employer and bonded field on my wp is blank.