Tax advice needed for Canadian now working in HK on a W2 US contract

I am a Canadian citizen living and working in HK. I am a also HK resident. A year ago, I have signed an agreement (I believe it is a W2 contract) with a US based company to work as a Consultant at another US client's HK location. I have been working at that client for almost a year now. I am not a US ciizen. I have yet to close out all the remaining accounts in Canada (i.e. health insurance card, driver's licence, etc.) I don't have any other assets except a Canadian bank account + credit cards which I plan to cancel soon. I need to know what the requirements are for taxes in this case. Do I still need to pay Canadian taxes on the current assignment income? I am about to cancel all the above accounts and issue an official notification of becoming a non-resident since having moved out of the country for a year now. I get paid directly from the US company with whom I have signed the W2 agreement. I was told by that US company that I would not be subject to US income taxes arisng from the W2 contract. Has anyone been in a similar situation? Any help would be appreciated.

Dear icenkool:


We are a tax consulting firm specialized in U.S. taxation of foreign income and international transactions.


We do not have the expertise to answer your question on Canadian tax. For U.S. tax, your liability of such depends on the number of days you work in the U.S. All in all, if you are issued a Form W-2, you are required to file a U.S. tax return.


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Brian Wong, US CPA

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Southwest Tax & Financial Planning Limited

8/F., New York House

60 Connaught Road Central

Hong Kong


Tel: (852) 2575 5800

Fax: (852) 2523 6800

Email: swtfp@netvigator.com

Website: www.yp.com.hk/swtfp

Hi Brian,


Thanks for your prompt info. The job is entirely in HK although the contract did not specify the client's location as HK. So far, I have not been issued a W-2 Form. Hope I won't be liable as fas as US tax is concerned.


If anyone has information on what my options are, that would be so much appreciated.


Thanks.

Please contact Shane Weir, a Canadian solicitor in HK of 20 years + whose firm is a specialist in Canadian tax. Telephone 25261767.