Hello! I have an internship planned in Fall 2020. My study and work permits are expiring within a week. I have already applied for new ones back in April 2020. However, I am not able to submit my biometrics because of VAC(s) closure. Currently, I am residing in India. So, I was wondering whether I need to have work permit while I work from India or not? I will be getting my pay in my Canadian bank account and I am planning on returning to Canada as soon as I get my new permits.
Is work permit required?
- Thread starter computerscience23
- Start date
Thanks for your reply. But I will be working from India remotely for a Canadian company on a Canadian payroll. What’s the source of your reply? Can you please share some link or something which states that I don’t need work permit?
Why would Canadian immigration have a link that says if you're not in Canada you don't need a work permit? But if you have doubts there are many threads on this forum that confirm the information.
You won't find such a link for the reason stated above. Canadian immigration doesn't care about foreign nationals working in other countries.
In terms of impact to payroll etc, that can raise tax questions - your employer needs to make sure they are in compliance with Canadian law, and you need to make sure you're in compliance with Indian law. You don't have to worry about the Canadian tax authorities, just as your employer doesn't need to care about the Indian tax laws (unless they happen to have an office/subsidiary in India).
However - I just saw that you're getting paid in Canada.
If your employer is reporting you as a local employee to CRA, that will cause issues for them and you. They should NOT be under the impression that you are authorized to work in Canada - if they use your SIN number, that will be cause problems for you later on. You should make sure that your employer knows that you are in India and that you don't have a work permit.
As long as they report you as a foreign employee, it will be fine.
So, I can still get paid in my Canadian bank account as long as they report me as a foreign employee?
I'm not an expert on cross-border taxation so I can't really say for sure. You need to check with your company. I do know that you have to make sure your company doesn't end up reporting you to the CRA as if you were authorized to work in Canada, but just happen to be abroad.
Think of the difference between you (not currently authorized to work in Canada) and a Canadian PR/citizen who was visiting family in India and got stuck there (me...). I am working remotely for my company, I'm getting paid in my Canadian account, and it's all fine because I'm a PR and therefore have the right to work there. I'll file taxes at the end of this year as a Canadian resident. I don't have to worry about immigration saying I worked illegally.
It also depends on your form of employment. Employees are not the same as independent contractors.
Ideally, you would be an independent contractor getting paid in your Indian account. That would make things very clear. Look into companies like Remote.com and letsdeel.com - your company can use those to pay you in India and remain in compliance.