[martell]

Can't say much without knowing the specifics such as, what are the 2 countries, and if this is company to company relationship or company to you individually relationship.

There are things to consider after knowing that such as the type of work, if there is a double taxation agreement between the countries, if it is to you individually were you resident in one or both countries during the year and which one.

Some countries also always expect you to pay tax regardless of presence - for example the US if you are a citizen or permanent resident which is a somewhat more complicated situation

For context I've dealt with some international situations between Ireland and the US in the past - but don't take anything I say as legal advice because IANAL or tax expert

[imheretolearn]

Hey martell, thank you for the input. Could you please explain what you mean by type of work? I will be doing the same work I was doing when I was employed with my previous employer ie software engineering.

I have updated the post in response to your comment for everyone to have that information

[martell]

There seems to be a taxation agreement between Canada and India -

https://www.treaty-accord.gc.ca/text-texte.aspx?lang=eng&id=...

Read article 23 - the elimination of double taxation

Without getting too specific - it seems pretty standard where you would get credit in one country against the other

I don't know the specifics of the difference between being a contractor vs employee in Canada or the implications of that ( in the US they are very distinct ). My best guess however based on the circumstances is that your (ex)-employer withholds tax for the Canadian government and then you would still declare that income on your Indian tax return and claim the credits for the taxes paid in Canada.

It also seems based on some googling that if you are outside India for 245 days of the year you are non resident - so you might not have to declare your total gross for the year and only the income which is considered based in India.

Again this is just a guess based on past experiences of mine with a lot of assumptions based on 2 very different countries and is most definitely not legal advice - I'd read the treaty thoroughly and try to find an expert in international tax compliance for India & Canada.

Also be extra careful about making sure you get this right - In the US for example when non resident one has to give the US company a W8-BEN (individual) or W8-BEN-E (company) form for them to file the taxes correctly at the end of year and to not withhold tax from you when they pay you when availing of a treaty.

My reference to type of work really refers to what nation states consider work vs product but also some types of work are also exempt from tax where people are at sea or working at an embassy etc

While on the surface software engineering remote from India seems like something outside the scope of Canadian tax law ( if you are non resident to Canada), the government might not look at it that way - is it then considered a product you are selling into Canada and taxable that way? - wording on invoices could have tax implications as a result - so be careful.

Lastly if this is a short term thing then it probably makes sense as an individual - but if this is going to be a long term arrangement you should spend time investigating the pros/cons of creating a company vs being an individual to optimize your return

And Good Luck :)

[imheretolearn]

Hey martell, I really appreciate your answer. I will read the link and think through about the taxes. Once again, thanks a lot!