Working for an employer overseas over the internet while in Canada, is it legal?

[kvrforum]

Yep. Line 104 on the tax return: Foreign employment income

Residents of Canada pay tax on worldwide income, although there are tax treaties and credits that can offset some of those taxes.

How can I pay for tax?
Should I make SIN number for it?

 

[cyt0plas]

Yes. You would sign up for a SIN, and file annual tax returns.

If you worked for the US, you would likely want to take advantage of the provisions of the US Canada tax treaty. You would end up getting a credit for the taxes paid to the other country.

Generally, what that means is you end up paying whichever country is highest. So, with the US, that would likely mean that you would end up owing Canadian income tax on all your income, but you could then apply for a credit in the US of the taxes paid, largely mitigating any US liabilities.

 

[navrisham]

I am a post graduate work permit holder and planning to work part time remotely as a software developer for a US based company(company doesn't have any office in Canada). So my concern is: is it legal to work for a US company being a open work permit holder? Also, I will be getting paid by cheque.

Thanks!