International Tax Planning

Navigating the tax challenges of global mobility

In today’s global economy, there are generally no country boundaries for earning one’s income from business, employment or investment. However, one needs to be wary of the resulting combined taxes owed to the governments of their home country as well as the countries from which the foreign income is sourced. One also needs to comply with the consequential domestic and foreign tax reporting requirements.

Cross-Border Taxation

Many governments tax individuals and enterprises on worldwide income based on certain criteria, while limiting the scope of their income taxation in some manner territorially or provide for offsets to taxation relating to extraterritorial income. Such systems of taxation vary widely from country to country and create the potential for double taxation (where the same income is taxed by different countries) and no taxation (where income is not taxed in any country). Thus, in carrying on any income earning activities beyond the boundary of your home country, you will have to consider the tax implications and reporting requirements of both your home country as well as the foreign country in which the activities are being carried out.

International Tax System in Canada

Generally speaking, under Canada’s international tax system, corporations and individuals resident in Canada are subject to Canadian taxation on their worldwide income. For income sourced from foreign countries, foreign tax credits or deductions may be available to eliminate double taxation of the same income by foreign governments. On the other hand, non-resident corporations and individuals are subject to Canadian taxation on their income sourced from Canada, unless relief is available under the respective treaties concluded between Canada and the countries in which the foreign persons are resident.

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Tax Planning

International Tax Planning and Return Preparation

We are experienced working with the international tax professionals in local countries to help you manage your Canadian and international tax liabilities, with the aim of reducing the total tax burden and complying with all tax reporting requirements across all jurisdictions.

We possess the international tax knowledge and experience to assist Canadian-based businesses with operations abroad, and foreign-based businesses investing or carrying on business in Canada.  We help individuals and their respective families to develop a sound cross-border financial plan to enhance their personal and family wealth, and to preserve the value of their estates.

Canadian Enterprises Expanding Outside Canada

Teaming with the international tax professionals in local countries, we provide the following services to help your enterprises manage/reduce the foreign operations’ global effective tax rate:

Inbound Tax Services

Foreign-Controlled Enterprises Investing in Canada

We provide the following services to help your enterprises manage/reduce the Canadian operation’s global effective tax rate:

Our cross-border services to individuals include:

Canadian Residents Leaving Canada or Investing Outside Canada

Non-Residents Coming to Canada or Investing in Canada