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It's about tax efficiency.
We strengthen your financial foundation and ensure full tax compliance so you can operate with clarity and confidence, whether you are an individual taxpayer, a sole proprietor, a corporation, or other related entity.
Ensure your taxes are done right.
We provide full‑service cross‑border accounting for startups — delivering complete bookkeeping, expert tax compliance, and high‑impact financial solutions designed to optimize performance and drive results.
A treaty-protected return applies when the Canada–US tax treaty exempts certain income from being taxed. We prepare these filings to make sure your income is properly protected and reported.
We prepare and file full corporate tax returns, ensure compliance with federal and state/provincial rules, and help optimize your tax position.
Yes. We prepare and remit all Canadian sales taxes (GST/HST/QST/PST) to ensure your business stays compliant.
We offer payroll setup, calculations, deductions, government remittances, and year-end slips so your employees are paid accurately and on time.
Yes, if the company has U.S. business activities or earns U.S.-source income. Filing is generally required under the Internal Revenue Code when the company is engaged in a U.S. trade or business.
Common triggers include:
- Operating a business physically in the U.S.
- Having employees or agents in the U.S.
- Owning U.S. rental or commercial real estate
- Selling goods or services connected to the U.S.
Even minimal activity can create a filing obligation.
Foreign corporations are generally subject to a 21% federal corporate tax rate on ECI under the Tax Cuts and Jobs Act.
State taxes may also apply depending on nexus.
Yes. The treaty can:
- Limit taxation if there is no Permanent Establishment (PE) in the U.S.
- Reduce withholding taxes
- Provide relief from double taxation
Failure to file can result in:
- Loss of deductions (taxed on gross income instead of net)
- Significant penalties
- Increased scrutiny from the Internal Revenue Service
Rental income is typically treated as FDAP income (30% gross withholding).
However, an election can be made to treat it as ECI, allowing:
- Deduction of expenses
- Taxation on net income
Yes, commonly:
- Dividends: 30% (reduced to 5% or 15% under treaty)
- Interest: Often exempt under treaty
- Royalties: Typically reduced to 0% or 10%
Yes, if the corporation carries on business in Canada or disposes of certain Canadian property. Filing is required under the Income Tax Act.
Common triggers include:
- Operating a business in Canada
- Having employees or agents in Canada
- Maintaining an office or fixed place of business
- Selling taxable Canadian property (e.g., real estate)
This is determined based on facts and may include:
- Where contracts are concluded
- Location of employees or agents
- Place of delivery or services
- Frequency and continuity of transactions
Even limited activity can create a filing requirement.
A PE is a fixed place of business in Canada, such as:
- Office, branch, or warehouse
- Construction site (lasting a certain duration)
- Dependent agent with authority to contract
Under the Canada–United States Tax Convention, business profits are generally taxable in Canada only if a PE exists.
Yes, in many cases. Even if treaty protection eliminates tax, a protective filing (e.g., T2 return) is often recommended to claim treaty benefits and avoid penalties.
If taxable in Canada, income is generally subject to:
- Federal corporate tax (~15%)
- Provincial tax (~11–16%, depending on province)
Combined rates are typically in the 25%–30% range.
Failure to file can result in:
- Penalties and interest
- Loss of treaty protection claims
- Increased audit exposure from the Canada Revenue Agency
Yes, commonly:
- Dividends: 25% (reduced to 5% or 15% under treaty)
- Interest: Often reduced to 0%
- Royalties: Typically reduced to 0%–10%
Transactions between U.S. and Canadian entities must comply with transfer pricing rules under Section 247 of the Income Tax Act.
They must reflect arm’s length pricing and be properly documented.
Yes. Provinces administer their own corporate tax regimes, and:
- Nexus rules vary by province
- Allocation of income may be required across provinces
Using a Canadian subsidiary can:
- Limit exposure to branch tax
- Simplify compliance
- Provide legal separation
However, dividends paid to the U.S. parent may be subject to withholding tax.
Generally no. Losses are typically restricted to the country in which they arise, although planning strategies may exist depending on the structure.
This includes:
- Canadian real estate
- Shares of private Canadian companies
- Certain resource properties
Disposals may trigger Canadian tax and reporting obligations.
- Not filing a T2 return when required
- Incorrectly assuming no PE exists
- Ignoring provincial tax obligations
- Inadequate transfer pricing documentation
Yes. Cross-border corporate taxation involves:
- Treaty interpretation
- Multi-jurisdiction compliance
- Strategic structuring decisions
Professional guidance is essential to manage risk and optimize tax outcomes.
Yes. We prepare and remit all Canadian sales taxes (GST/HST/QST/PST) to ensure your business stays compliant.
Yes, if the business has sufficient connection (nexus) with a U.S. state. Sales tax is governed at the state level, not federally, so obligations depend on each state’s rules.
Nexus is the level of connection that triggers a tax obligation. There are two main types:
- Physical nexus: Employees, inventory, or offices in a state
- Economic nexus: Sales exceeding certain thresholds
The concept of economic nexus was expanded following the South Dakota v. Wayfair, Inc..
Economic nexus means you can have a sales tax obligation without being physically present in a state.
Most states impose thresholds such as:
- $100,000 in sales, or
- 200 transactions annually
Yes. You must register with the relevant state tax authority before charging and collecting sales tax. Collecting without registration can create compliance issues.
- Sales tax: Collected by the seller at the point of sale
- Use tax: Paid by the buyer when sales tax was not collected
States expect businesses to comply with both where applicable.
It depends on the state.
- Some states tax SaaS and digital goods
- Others exempt them
There is no uniform rule across the U.S.
Not always. Many states do not tax services, but some do (especially for digital or specialized services). Each state must be analyzed individually.
You may be liable for:
- The uncollected tax
- Penalties and interest
- Audit exposure
This liability is typically borne by the seller—not the customer.
Platforms like Amazon or Shopify may collect and remit tax under marketplace facilitator laws.
However, you may still need to:
- Register in certain states
- File informational returns
Yes, in many states. These are called “zero returns”, and failure to file can result in penalties.
Filing frequency depends on the state and your sales volume:
- Monthly
- Quarterly
- Annually
Generally no, unlike VAT systems. However:
- You may claim resale exemptions
- You must provide valid exemption certificates to suppliers
A resale certificate allows you to purchase goods tax-free if they are intended for resale. Proper documentation is critical to avoid audit exposure.
No. Only in states where you have nexus.
However, many businesses unknowingly trigger nexus in multiple states due to online sales.
Significantly. Each state has its own:
- Tax rates
- Filing requirements
- Taxability rules
There is no unified system, unlike Canadian GST/HST.
- Ignoring economic nexus thresholds
- Not registering in required states
- Improper exemption certificate management
- Assuming marketplace platforms handle all compliance
Yes. U.S. sales tax is one of the most complex indirect tax systems globally due to:
- State-by-state variation
- Frequent rule changes
- High audit risk
- April 30: Most individuals
- June 15: Self-employed individuals (balance still due April 30)
- RRSP contributions
- Childcare expenses
- Medical expenses
- Work-from-home expenses
- Tuition credits
We typically need your income slips, investment documents, foreign income details, and any deductible expense information. We give you a clear checklist to follow.
You may need to file in both countries if you live in one and earn income in the other. We review your situation and handle all required filings.
Common types include:
- Rental income from U.S. real estate
- U.S. employment income
- Business income effectively connected to the U.S.
- Certain investment income (dividends, interest, capital gains)
The taxation depends on whether the income is considered Effectively Connected Income (ECI) or Fixed, Determinable, Annual, or Periodical (FDAP) income.
Yes. The Canada–United States Tax Convention can:
- Reduce withholding tax rates (e.g., dividends)
- Prevent double taxation
- Provide exemptions for certain income types
Proper disclosure (e.g., Form 8833) may be required to claim treaty benefits.
Generally no. Canada provides a foreign tax credit for U.S. taxes paid. Coordination between both countries’ tax systems ensures that income is not taxed twice.
The Foreign Investment in Real Property Tax Act applies when a Canadian resident sells U.S. real estate.
- A 15% withholding tax is applied on the gross sale price
- You must file a U.S. return to calculate the actual tax and potentially recover a refund
Yes, if you are not eligible for a Social Security Number, you will need an Individual Taxpayer Identification Number (ITIN) to file with the Internal Revenue Service.
Yes. You can elect to treat rental income as ECI, allowing you to:
- Deduct expenses (mortgage interest, property taxes, depreciation)
- Be taxed on net income instead of gross
This is done under Section 871(d) of the Internal Revenue Code.
Possibly. If your income is tied to a specific state (e.g., rental property or employment), you may have a filing obligation in that state in addition to your federal return.
- June 15 if you have no U.S. wages subject to withholding
- April 15 if you do
Extensions are available by filing Form 4868.
Generally:
- Public securities: Not taxable in the U.S. for non-residents
- U.S. real estate: Taxable under FIRPTA
U.S. dividends are typically subject to 15% withholding tax under the tax treaty (instead of 30%).
You may face:
- Penalties and interest
- Loss of deductions or treaty benefits
- Issues with future U.S. transactions (e.g., property sales)
Yes. As a Canadian resident, you are taxed on worldwide income. U.S. income must be reported in Canada, with foreign tax credits applied.
Strongly recommended. Cross-border taxation is complex and involves coordination between two tax systems, treaty interpretation, and compliance requirements.
You may need to file a Canadian tax return if you earn Canadian-source income, such as employment income earned in Canada, rental income from Canadian property, or certain investment income.
Common examples include:
- Employment income earned in Canada
- Business income carried on in Canada
- Rental income from Canadian real estate
- Capital gains from Canadian real property
- Certain pensions and investment income
Your tax liability depends on:
- Source of income (Canadian vs foreign)
- Whether you are considered a resident or non-resident for tax purposes
Non-residents are generally taxed only on Canadian-source income under the Income Tax Act.
- Residents: Taxed on worldwide income
- Non-residents: Taxed only on Canadian-source income
Residency is based on ties to Canada (home, family, economic ties), not just immigration status.
Yes, under domestic rules. In that case, the Canada–United States Tax Convention provides tie-breaker rules to determine your tax residency.
Certain Canadian-source passive income earned by non-residents is subject to withholding tax, typically:
- 25% standard rate
- Reduced rates under the tax treaty (often 15% or lower)
By default:
- Subject to 25% withholding tax on gross rent
Alternatively, you can elect under Section 216 of the Income Tax Act to:
- File a Canadian return
- Deduct expenses
- Pay tax on net rental income
The sale is subject to withholding under Section 116 of the Income Tax Act:
- Typically 25% of the gross sale price (or 50% for certain gains)
- You must file a Canadian tax return to report the actual capital gain and recover any excess withholding
Yes. U.S. residents filing in Canada typically need:
- An Individual Tax Number (ITN) or
- A Social Insurance Number (SIN) (if eligible)
Yes, unless exempt under the tax treaty.
Under the treaty, income may be exempt if:
- You are in Canada less than 183 days
- Paid by a non-Canadian employer
- The cost is not borne by a Canadian entity
Yes, but typically at reduced withholding rates under the tax treaty. Some pensions may be taxed only in the U.S., depending on the type.
Not always, but filing may allow you to:
- Recover overpaid taxes
- Claim deductions or credits
- Public securities: Generally not taxable in Canada for non-residents
- Canadian real estate: Fully taxable
- Not filing a required Canadian return
- Ignoring withholding tax obligations
- Failing to obtain clearance certificates on property sales
- Misinterpreting treaty exemptions
This is a factual determination and may include:
- Having employees or agents in Canada
- Operating from a fixed location
- Frequent or continuous business activities