Helping executives manage their financial success
Employees crossing the border are often following career-growth opportunities. Executives and key employees of large or growing corporations are often offered or demanded to travel across borders, often relocating themselves and their families for several years. The move for work across the border has implications beyond simply moving to a new residence.
The main issues arise from the difference in how Canadians and Americans are taxed. While both are taxed on their worldwide income, Canadian citizens are taxed based on their residency while US citizens are taxed based on their citizenship. Thus, while Canadians can follow a process to stop paying taxes when they leave Canada, American citizens are taxed no matter where they live. Further, while there is a tax treaty between our two countries, there are also situations where individuals may be subject to double taxation and other unwanted cross-border tax traps.
Canadians relocating to the US for work, and Americans moving to work in Canada should plan their cross-border move in advance to avoid the most common pitfalls and also to capitalize on opportunities that can result from such a change.